According to Age UK free bus travel is a life line enabling older people to maintain independence and get to local services, notably health care and shopping. Free bus travel combats social isolation and increases social inclusion allowing older people to stay in touch with their friends and families.[6]
Funding
Under the scheme, bus companies are compensated by local authorities for carrying passholders, and the authorities in turn receive funding from central Government to offset the cost, in the form of a special grant under s.88B of the Local Government Finance Act 1988,[7] for which a total of £212 million has been allocated. This is distributed using a funding formula on the basis of four factors (eligible
population, bus patronage, overnight visitors and retail floor space),[8] in the following proportions:
Proportion
Eligible population
5.1%
Bus patronage
41%
Overnight visitors
15.4%
Retail floor space
38.5%
The funding allocated by Government was criticised by some[9][10] as inadequate, and some local authorities anticipate budget shortfalls as a result.[11] The government defended its decision not to compensate local authorities on the basis of actual costs incurred on the grounds that "such an approach would mean that the central government would hold all the financial risks but have no commensurate control of how the risks are managed".[8]
As of 2014 there is concern about funding for this service, government funding fell 39% from 2010 and Local authorities are forced to pay for this at the expense of other services.
The local government spending squeeze means what is required by law is undeliverable unless county councils put in extra subsidy. Is it fair that a ratepayer is subsidising what government should be paying for in the first place?
The concessionary fares scheme provides a lifeline for our most vulnerable residents to go shopping, pick up medication, attend doctor’s appointments or socialise with friends. However, it is now under real threat. Unless the Government commits to fully funding concessionary fares, elderly and disabled people will be left stranded with a free bus pass in one hand but no local buses to travel on in the other.
We know that bus services are vital for many older and disabled people. That is why the right to free travel is enshrined in law, and government provides funding to meet the cost of subsidising off peak travel for these groups. In addition, the Department for Transport provides funding to bus operators to help more services run and keep ticket prices down. The current level of this funding is protected until 2015/16
As is common for uncontroversial measures, the Bill was introduced in the House of Lords, where it received cross-party support.[15] It received third reading from the Lords on 5 February 2006, and from the Commons on 28 June, with minor amendments, including one allowing the Government to make payments from public funds to fund the scheme, since money bills cannot be started in the Lords. These amendments were agreed to on 5 July, and the Bill received Royal Assent on 19 July. Under the commencement order, the Bill entered into force to allow the making of some regulations by the Secretary of State, and for some other preliminary purposes, on 17 October 2007, and in full on 1 April 2008.
