William Eichler 26 October 2020

Councils forced to ‘prop up’ bus operators during pandemic

Local authority leaders have accused the Department for Transport of forcing councils to keep private bus companies afloat at the expense of local taxpayers.

Councils have a statutory duty to administer the concessionary bus travel scheme in England, which provides older and disabled people with free off-peak travel on all local bus services in England. Local authorities reimburse bus operators for all journeys made by people with a concessionary pass.

However, since the outbreak of the pandemic, the Government has asked councils to make these payments to bus providers based on pre-COVID-19 concessionary travel levels.

This is despite bus usage having dropped by 67% since March with many of those eligible for a concessionary pass being forced by the pandemic to remain at home.

The Local Government Association (LGA) is calling on the Department for Transport to end this emergency measure.

The association says the link between concessionary payments and the number of journeys being made is ‘broken’ with the scheme already underfunded by Government by around £700m a year before the pandemic. Councils are being forced to make up the shortfall.

‘Councils want to work with the Government to improve and protect bus provision during the crisis and beyond but it is increasingly clear that it is unsustainable to ask councils to continue to prop up local bus operators for a national scheme that is already underfunded,’ said Cllr David Renard, LGA transport spokesman.

‘The free bus pass provides a vital service for our communities. It allows many vulnerable residents to go shopping, pick up medication, and attend doctors’ appointments.

‘Years of underfunding of the scheme has left councils struggling to subsidise the scheme. This is now increasingly impossible amid pre-existing funding and demand pressures on local services, some of which have been exacerbated by the pandemic.

‘Councils know how important buses are for their residents and local economies and are desperate to protect them. It is vital this scheme is properly funded so councils can protect bus routes and reinvest in local networks.’

The Department for Transport denies that they are forcing councils to subsidise bus companies.

Bus operators are not allowed to make a profit whilst in receipt of Coronavirus Bus Service Support Grant (CBSSG) therefore they argue that this funding does not contribute to private sector profits.

A Department for Transport spokesperson said: ‘Buses are vital for connecting people, homes and businesses, and concessionary bus travel is a lifeline for many older people who can use it to get to shops more safely and peacefully before rush hour.

‘We have provided unprecedented support to ensure that bus services can continue to operate for everyone who needs to them during the pandemic, committing over £1.1bn this financial year.’

SIGN UP
For your free daily news bulletin
Highways jobs

Restorative Justice Practitioner

Essex County Council
£24395 - £31131 per annum + + 26 Days Leave & Defined Benefit Pension
Restorative Justice PractitionerPermanent, Full Time£24,395 to £31,131 per annumLocation
Recuriter: Essex County Council

Specialist Senior Supporting Families Worker - 12 month FTC

Essex County Council
£30931 - £35362 per annum + + 26 Days Leave & Defined Benefit Pension
Specialist Senior Supporting Families WorkerFixed Term, Full Time£30,931 to £35,362 per annumLocation
Recuriter: Essex County Council

Supervising Social Worker - Fostering Team, South Essex

Essex County Council
£36101 - £48622 per annum
Supervising Social Worker - Fostering Team, South EssexPermanentPart Time, 3 days / 22.2 hours per week£36,101 to £48,622 per annumLocation
Recuriter: Essex County Council

Social Worker - Children in Care, South Essex

Essex County Council
£36101 - £48622 per annum
Social Worker - Children in Care, South EssexFixed term / Secondment, 12 monthsFull Time, 37 hours per week£36,101 to £48,622 per annumLocation
Recuriter: Essex County Council

Youth Partnership Coordinator

Sheffield City Council
Grade 6 (£30,825 to £34,834)
We have an exciting opportunity for a part-time Youth Partnership Coordinator to join Community Youth Services Sheffield, South Yorkshire
Recuriter: Sheffield City Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.