Stratford, West Ham and Canning Town will move from Zone 3 to Zone 2/3 border as part of the annual fare review, which will come into effect in the New Year.

This will be good news for regular travellers between Stratford and other Zone 1 and Zone 2 stations, as they will no longer need a Zone 3 ticket, potentially saving hundreds of pounds a year in travel.

West Ham and Canning Town on the Jubilee line and DLR stations on the line between Canning Town and Stratford International have also been reclassified, lending key areas of regeneration in the East End parity with already prosperous locations in Zone 2.

Mayor Boris Johnson said: “Moving Stratford into a new transport zone is a unique opportunity to recognise the shifting economic map of London. Our aim is thousands of new jobs.”

Mayor of Newham Sir Robin Wales said: “This provides long overdue recognition that London is moving East. Rezoning east London will accelerate growth, bring additional investment and visitors and create much needed jobs and homes.”

The move comes alongside a real terms fare freeze on TfL services, meaning prices will only increase in line with inflation.

TfL has also committed £500,000 a year to enable free travel for under 11s on train services in the capital.

Currently, children in that group pay nothing on TfL’s buses and trams and on the Tube, DLR, London Overground and TfL Rail services when accompanied by a fare-paying adult.

Mr Johnson said: “I’m delighted we’re able to yet again freeze overall fares in real terms for our passengers.

“It’s the third year in a row that we’ve been able to offer this great deal, allowing us to keep the cost of travel down while continuing our vital programme to modernise the network.

“Hundreds of thousands of families will also benefit now we’ve struck a deal to extend free travel for under 11s across all rail services in London.

“By securing this deal we are taking away the fares confusion for so many and opening up wider travel in the capital for families to enjoy.”

The new fares will come into effect from Sunday, January 2 and customers will be able to buy tickets, including season tickets, at 2015 prices until Friday, January 1, 2016.

What the changes mean for your wallet

Travel between The City to Stratford

  • A single peak time fare will decrease from £3.30 to £2.90.
  • A single off-peak fare will decrease from £2.80 to £2.40.
  • A daily capped anytime fee will decrease from £7.50 to £6.40.

Travel between Canary Wharf and Stratford

  • Single fares will remain the same.
  • Capped anytime fees will decrease from £7.50 to £6.40.

Across London

  • Single bus fare is frozen at £1.50.
  • One-day bus cap increases by 10p to £4.50
  • Tube, London Overground, the DLR and TfL Rail, pay as you go single fares in zones 1-6 are frozen, except Zone 1 only and Zone 1-2 off-peak fares, which will increase from £2.30 to £2.40.
  • Off-peak Zones 1-6 Travelcard and the anytime Zones 1-4 Travelcard will increase from £12 to £12.10.
  • Emirates Air Line’s single fare for adult pay as you go users and Travelcard holders is increased by 10p to £3.50. All other Emirates Air Line fares, including child fares and cash fares, are frozen.