Transport for London (TfL) has confirmed that the Government has again extended its emergency funding support until February 4, 2022.
There had been an announcement last week that TfL and the Government needed more time to come to an arrangement to help support TfL's sustainbility. It had already extended the support from December 11 until December 17.
Andy Byford, London's Transport Commissioner, said: "The Government has confirmed an extension of its funding support for TfL through until February 4, for which we are grateful. The Mayor has also set out a range of proposals that will help support TfL's financial sustainability.
"There is no UK recovery from the pandemic without a London recovery and there is no London recovery without a properly funded transport network in the capital.
"It is therefore essential that discussions with Government continue so that we can agree the sustained long-term Government funding that is vital for the coming years if a period of 'managed decline' of London's transport network is to be avoided.
"Working together we must achieve this longer term funding settlement that ensures London's transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. This vital job is far from done."
TfL data has shown Tube passengers have dropped by 300,000 over the last week as Government guidance to work from home came into force.
It has meant Tube passenger numbers have dropped to 46% of the levels seen before the Covid-19 pandemic.
The the three rounds of previous emergency support packages means total Government support for TfL since March 2020 is more than £4bn.
The DfT is working with TfL to set out further measures to ensure the transport network in London financially sustainable by April 2023.
These include progressing efficiency and cost-saving initiatives and identifying new or increased sources of revenue for TfL beyond 2023.
It is expected new cost savings will be announced before Q2, with the potential for staffing reductions and ambitious changes to the way TfL is run across the capital.