UK bus operators to receive additional grants for using low-carbon vehicles

UK Transport Secretary Geoff Hoon has announced additional Bus Service Operators Grant (BSOG) payments of US$0.09) per kilometre for bus companies that use low-carbon vehicles.

Operators participating in the scheme will also be granted a three per cent increase in the grant if they improve fuel efficiency by six per cent before 1 April 2010. The moves have been welcomed by advocacy group the Low Carbon Vehicle Partnership and transport watchdog Passenger Focus, which praised the targets as "eminently achievable".
Bus concession funding consultation launched by DfT
Filed 29/04/09 

England's concessionary bus pass system is to be reviewed following complaints about how funding for the scheme is allocated by the government.

Transport minister Paul Clark this week launched a consultation on possible changes to the way the scheme is administered in an attempt to respond to criticism from local authorities and bus operators that they are being left out of pocket by providing free bus travel for the over 60s.

One option being considered is to give county councils responsibility for running the scheme while an alternative would see the DfT or one of its agencies taking direct control. Currently, administration of the scheme is mainly handled by district councils but the government believes a change would simplify the system and allow for the more accurate distribution of funding.

Since 1 April 2008 people aged 60 or over, and eligible disabled, whose principle residence is England, have been able to take advantage of free off-peak local bus travel anywhere in England. Local authorities receive around £1 billion to fund the statutory concessionary bus pass scheme in their area.

Paul Clark said "Concessionary travel is a successful and popular policy. A recent survey suggests around 95% of the population believe it's right that older and disabled people are entitled to travel for free on off-peak buses.

"We're confident there is enough money in the system, but we need to ensure that the right structures are in place to administer it. I look forward to hearing people's views on how to guarantee that pass holders get the most out of this billion pound scheme and concessionary travel remains sustainable for the future."

The administrative arrangements for concessionary travel have remained the same since the statutory minimum bus concession was introduced in 2001. Since then various changes have been made to improve and extend the scope of the concession, and in April last year the limitation of local area only travel was replaced by free England-wide off-peak bus travel. Additional funding of £217 million is being provided to local authorities this year by a special grant purely to cover the cost of extending the concession to England-wide travel.