The government has agreed a £1.8 billion bailout for the Transport of London in order to keep the bus and Tube service running until March 2021.
The government is funding the TfL in order to address their financial problems due to the reduced numbers of passengers from Covid-19. Sadiq Khan, mayor of London, said that the bailout was “proof of our commitment” towards Covid-19.
The TfL needs the government support due to their fares income has reached a very low amount that would eventually force the TfL to file for bankruptcy.
The new deal introduces a 30% increase in the fee as well as longer operating hours as well. Mr Khan also pledged that national taxpayers will not pay for the benefits of Londoners. With the new deal, it currently it costs £600 million a month to keep the transport network running.