Note to Members: Changes in Reimbursement to Bus Operators for the Concessionary Bus Travel Scheme

The English National Concessionary Travel Scheme (ENCTS) was introduced by the Government in 2011 and extended in April 2008 to allow bus travel throughout England. The scheme enables people who have reached the state pension age or those with certain disabilities to travel free on eligible local bus services between 09:30 and 23:00 Monday to Friday and anytime at weekends and on Bank Holidays. Whether using the bus locally or when visiting other parts of the country, older and disabled people are able to travel by bus for free at these times. The Scheme is intended to reimburse bus operators on the principle that the operators are no better off and no worse off by carrying Concessionary Fare pass holders No statutory level of reimbursement exists and Cornwall, like many other authorities, followed the example set by the established schemes in Wales and Scotland and set a reimbursement figure of 73.5% of the average adult fare paid on local bus services. Last year (2010/11) Cornwall Council reimbursed 7.4m comprising 7.0m of Central Government grant and with local top up. In the current financial year (2011/12) the Government grant has been reduced by 2m to 5.4m (equivalent to 44% of the adult fare in line with Government guidance). It is not possible at this time to give an indication of what impact the reduction in bus operator reimbursement will have upon the bus network. The Department for Transports aim of the funding was not to subsidise bus operations but to pay for any increased costs that may have been incurred in carrying those concessionary fare pass holders. It is proposed to consult with the bus operators with a view to introducing the revised level of reimbursement at the end of August 2011. Whilst this aspect of funding is being reduced the Council still remains committed to supporting bus transport as demonstrated by the Councils continuing support for evening and weekend services and the local transport plan prioritization of investment in sustainable transport.

For more information please contact David Edwards in the Passenger Transport Unit (PTU), telephone 01872 322145 or email dedwards@cornwall.gov.uk