Ticketing and Concessionary Travel on Public Transport - United ...

Transport Committee: Evidence Ev 177
56. Since 2000, the Government has consistently acted to enhance access to concessionary travel. We
have moved from a situation where, before 1999, there was no statutory minimum entitlement to one where,
from April 2008, all older <strong>and</strong> disabled people in Engl<strong>and</strong> will get free oV-peak bus travel anywhere in
Engl<strong>and</strong>. At the moment, concessionaires are only guaranteed oV peak bus travel within their local authority
area. The proposed change underlines the importance we attach to older <strong>and</strong> disabled people being able to
access public transport, <strong>and</strong> shows we recognise the role access to transport plays in tackling social exclusion
<strong>and</strong> maintaining well-being.
57. Around 11 million older <strong>and</strong> disabled people are expected to benefit from the enhanced concession
in 2008 <strong>and</strong> the Chancellor, in the 2006 Budget, committed up to £250 million a year of additional funding
for it. From April 2008 the Government’s annual funding for concessionary bus travel will total around
£1 billion.
58. The Government is aware that there are concerns over the levels of funding provided to some local
authorities to pay for concessionary travel. We remain confident that the funding is suYcient in aggregate,
but we are working to ensure that it is targeted as accurately as possible. In so doing we need to be consistent
with the wider approach on funding that local government seeks from central government, namely freedom
<strong>and</strong> flexibility. Along with CLG, HMT, local government <strong>and</strong> other key stakeholders, we are actively
considering how best to distribute the additional funding being made available for the new national
concession. We have established liaison groups with representatives from all levels of local authorities, bus
operators, <strong>and</strong> other key stakeholders to work on the important issues of procurement <strong>and</strong> delivery of passes
<strong>and</strong> operator reimbursement which are also key aspects of implementation of the concession.
59. The Government’s approach has been to put in place a flexible framework for concessionary travel
to be able to respond to changing circumstances in the future, so as to maximise the benefit to users. Powers
in the <strong>Concessionary</strong> Bus <strong>Travel</strong> Bill would allow flexibility for Ministers to decide, following consultation,
to change mechanisms of reimbursement of bus operators in the future. We are committed to consulting
those with an interest, including local authorities <strong>and</strong> bus operators, on funding <strong>and</strong> reimbursement
mechanisms. It is in all our interests to ensure that local authorities are adequately funded for the national
concession.
60. The Government recognises the desirability of concessionaires resident anywhere in the UK being
able to travel on eligible local bus services anywhere in the UK. Powers in the Bill would allow, via
regulations in the future, for changes to English <strong>and</strong> Welsh legislation to enable mutual recognition of bus
passes across the UK, subject to discussions <strong>and</strong> agreement with the devolved administrations.
61. The Bill also retains the Secretary of State’s ability to increase the scope of the statutory concession
in the future, for example to extend it to other categories of people or other modes such as trams, <strong>and</strong> to
provide the concession at diVerent times. The Government has no plans at present to extend the concession
to other forms of public transport. Any decision to do this would have to be fully funded <strong>and</strong> the impacts
on transport operators fully considered.
Reimbursement <strong>and</strong> appeals
62. The Government is working with operators <strong>and</strong> local authorities to put in place revised arrangements
for the new 2008 concession. The fundamental principle that bus operators should be left “no better <strong>and</strong> no
worse oV” by involvement in concessionary fares schemes is however sound. Bus operators should continue
to be able to appeal to the Secretary of State if they feel that reimbursement arrangements put in place by
local authorities are unfair. To date, the Secretary of State has appointed an external independent decision
maker to determine the appeals on his behalf.
63. While appeals can create some uncertainty for local authorities <strong>and</strong> bus operators, the system is a key
component in the system of “checks <strong>and</strong> balances” which ensures that bus operators are properly
reimbursed while at the same time securing value for money for the taxpayer. The aim is to determine
appeals as quickly as possible, but proper consideration is of fundamental importance, <strong>and</strong> this sometimes
takes time.
Are concessionary fares schemes suYciently integrated across diVerent modes of transport <strong>and</strong> diVerent
geographical areas?
64. The Government has already taken significant steps to make concessionary travel available on other
modes of transport, in order to allow integrated concessionary travel. The Government provides £15 million
per year for concessionary half-fares on scheduled coach services (ie those that are not local bus services)
for older <strong>and</strong> disabled people. Train operators are required to participate in the Senior Persons Railcard
which oVers a third oV most rail journeys. The Disabled Persons Rail Card has similar terms <strong>and</strong> conditions,
<strong>and</strong> a companion of the disabled person is also entitled to a discount on the same journey.