Boris Johnson has unveiled his revised fares rises which will come into effect from January.
Fares had been expected to increase by an average of 7.2%, in line with the Mayor’s policy that increases be set 2% above RPI.
However on Tuesday Chancellor George Osborne announced he was making funds available to lower the increase.
On Friday the Mayor announced fares would rise “overall” by 5.6% thanks to the Government’s money.
Transport for London said the Oyster Pay as You Go (PAYG) bus fare would now rise “by just 5 pence, or only 3.8 per cent” while the weekly bus pass would rise “by one pound, or 5.6 per cent.”
Average Tube fares will rise by RPI plus one per cent and Oyster PAYG peak zones 2-5, 3-6 and 2-6 will rise by 4 per cent.
However cash TfL rail fares will increase by as much as 7.7% while the zone 1-3 and 1-6 travel cards and day caps will increase by 6.2%.
The Oyster zone 1-2 PAYG will increase by 8%.
Announcing the new fares package, Mayor Johnson said: “Every penny of this cash injection will go towards keeping fares as low as possible.
“That is very good news in the current economic climate and even better the unprecedented level of investment to improve London’s transport network will continue unabated.”
The Mayor has previously insisted he would not offer Londoners smaller increases before May’s Greater London Authority elections, “and then whack them up cynically thereafter.”
Despite these remarks, the 2013 increase is expected to return to the Mayor’s RPI + 2% formula.
Responding to the announcement, Liberal Democrat Mayoral candidate Brian Paddick said the Mayor “seems to be in a race to increase fares more than electricity and food prices at a time when most of us can’t afford it.”
Paddick added: “Londoners may be less worse off than they thought, but they are still paying to massage the Mayor’s ego, for cable cars across the Thames and routemaster buses that hardly any Londoners will benefit from.
“Come on Boris – if you scrapped the vanity projects you could freeze the fares.”
Ken Livingstone, Labour’s Mayoral candidate, said: ““Under enormous pressure from Londoners for a fare cut, the Tories have come up with another fare rise, making Londoners hundreds of pounds a year worse off and meaning a single bus fare by Oyster is now up 50 per cent under this Mayor.”
Livingstone, who has promised a 5% cut in fares if elected in May, added: “Fares are rising when they should be cut, and as the Tory mayor has once again failed to cut them today, I will set out next week further details of how I will cut them instead.
“Someone has to give a lead when people are feeling the squeeze – with some vision and hard work this fare rise could have been avoided.”
Caroline Pidgeon, Liberal Democrat London Assembly leader, commented: “It is the Coalition Government, not the Mayor who has ensured that fare rises have been reduced.
“Left to his own devices Londoners would have faced far higher fare rises under Boris Johnson. The Mayor has been saved from himself.”
London Councils, the umbrella body working on behalf of 33 London boroughs which fund the Freedom Pass, has welcomed the reduced fares hike.
Councillor Catherine West said: “We are pleased to hear that the increase in fares will not be quite as high as expected.
“London’s economy relies on its workforce and in the current economic climate, we need to make it as easy as possible for people to get to work. We understand the need for investment in the railway network but increasing fares at a risk to London’s workforce is not the way to go.’
Full details of the revised fares can be found here.