The Government and Mayor of London have agreed to extend the current Transport for London (TfL) funding deal until May 18 with an additional £260 million.
It takes total Government support for TfL to more than £3bn since the start of the Covid-19 pandemic in March 2020.
The original funding deal was due to run out on March 31, however the Department for Transport (DfT) said “things have changed since we set the end of March for the new review of support to TfL”.
A new funding deal for TfL will be put in place towards the end of May.
Transport secretary Grant Shapps (pictured) said: “The roadmap set out by the Prime Minister to cautiously and safely reopen society and our economy means we can better understand the potential recovery in passenger demand, ensuring we deliver a sensible and appropriate deal in the future.
“As a result, and given the Mayoral election timetable, we have therefore agreed to roll over the existing funding deal until May 18 on the same terms as now, providing certainty over the pre-election period.”
Shapps said the newly elected Mayor of London and the Government will agree a new funding deal after the elections in May 2021.
By this point, non-essential retail and other parts of the economy should be open and “transport demand on the network will be considered when formulating a future settlement”.