Written evidence from the National Pensioners
Convention (NPC) (BUS 36)
SUMMARY
— — The
introduction of a concessionary bus travel scheme in England is
widely regarded by older people as a positive benefit, not only
to them as individual users, but also to society as a whole. It
is therefore important that the overall value that the scheme
provides is properly recognised.
— — There
has been a certain amount of confusion as to the funding arrangements
of the current scheme which has raised issues regarding the costs
and benefits accruing to both local authorities and bus operating
companies. These need to be clarified.
— — Whilst
it is relatively early to provide extensive examples as to the
impact that the Comprehensive Spending Review will have on bus
services in England, it is possible to suggest that over the coming
period there will be increases in fares, reductions in network
coverage and a removal of those additional provisions that fall
outside of the minimum statutory requirement covered by the Concessionary
Bus Travel Act (2007). Of particular concern is the continuation
of those community transport schemes that are vital in many rural
areas where existing services are already limited.
— — Further
research and investigation should be carried out later in the
year to produce a more accurate picture of how the Comprehensive
Spending Review and other factors are impacting on free off-peak
travel services for older and disabled people.
1. INTRODUCTION
1.1 The National Pensioners Convention (NPC)
is Britain's largest pensioner organisation representing around
1.5 million older people, active in over 1,000 affiliated groups.
The NPC is run by and for pensioners and campaigns for improvements
to their income, health and welfare.
1.2 Since the introduction of the Concessionary Bus
Travel Act (2007), in April 2008, England has enjoyed a locally
administered bus pass that, whilst not providing a nationwide
service, can be used for through journeys across the country.
1.3 The provision of free bus travel remains extremely
popular with older people; allowing them not only to be socially
included, but also to make a valuable contribution to their local
communities. Any reduction in either the availability or entitlement
to services will therefore have serious and detrimental effects
on these users and society as a whole.
2. FUNDING OF
CONCESSIONARY TRAVEL
2.1 Since 2000, money was allocated to local
government to fund the introduction of a half-price bus fare scheme.
This money continues to be an ongoing payment and is not ring-fenced.
Likewise, in 2002 additional money was made available to give
men aged 60-64 the same concession as women of that age. In 2006,
an additional £350 million was made available for the free,
local-only bus travel and the Concessionary Bus Travel Act (2007)
produced a further £212 million.
2.2 However, despite this funding, some local
authorities have argued that the grants they receive are not sufficient
to meet the cost of free bus travel, including that which arises
as a result of tourists visiting the area. As a result, various
stories have appeared in the media that claim services will have
to be cut, or council tax is rising in order for pensioners to
get free bus travel. This is both misleading and unfair.
2.3 The fact that there are four separate ongoing
grants, none of which are ring-fenced, and that the formula for
making the grants is complicated and not readily available to
the public, means it is virtually impossible to guarantee whether
or not the money is being used properly. Such confusion can then
allow local authorities to claim they are under-funded and cut
services. The implications of the cuts to funding as part of the
Comprehensive Spending Review therefore only serve to make this
situation worse.
2.4 In addition, under the 2007 Act, bus operators
are supposed to be no better or worse off financially as a result
of providing concessionary travel. However, experience has shown
that by the way in which they calculate their fares, the different
ways they issue their tickets and the way they have been able
to alter routes to manipulate the market under the deregulated
structure, the bus companies have been able to make considerable
profits out of pensioner travel, alter services and make these
changes without local authorities having any influence. This is
something central and local government must address as it seriously
undermines the credibility and viability of the scheme.
2.5 In the past, the excessively large number
of Transport Concession Authorities (291) which have had to deal
with a relatively small number of big and powerful bus companies
simply weakened a local authority's ability to have any say over
the cost of reimbursement for concessionary travel. In view of
this, the government's intention in the future to simplify the
arrangements on a county council basis is therefore to be welcomed.
3. THE VALUE
OF CONCESSIONARY
TRAVEL
3.1 In the present financial situation it is
easy to suggest that older people should no longer have free bus
travel, or that it should be means-tested as a way of saving money.
However, this is a rather short-sighted and counterproductive
argument that needs to be challenged. In its present form, the
bus pass provides for free Off Peak bus travel (ie out of work
hours) for leisure and pleasure, but in doing so offers clear
benefits to society as a whole, as well as to individual users.
3.2 Concessionary travel enables older people
to continue to lead independent lives and participate in the communities
in which they live and the scheme should be part of society's
commitment to involve older people. Justification for free travel
should also acknowledge that we do not see older people as the
problem. In fact, if older people were properly included in our
society they would be part of the solution. For example, a vast
amount of charity work and volunteer organisations have a high
proportion of retired people taking part. Work done by volunteers
saves the economy considerable sums of money; estimated to be
well over £50 billion a year.
3.3 Furthermore, it is recognised that the social
inclusion of older people and the chance to stay independent and
active also brings reductions in the demand for health and care
services—with a corresponding decrease in the cost of these
services. By contrast, restricting access to concessionary travel
would undoubtedly lead to increases in social isolation, loneliness,
depression and higher demand for health and social care.
3.4 As well as benefiting the individual, it
has also been shown that extra services that have been provided
on some bus routes to cater for the increased pensioner demand,
also improves services for all, with some bus companies enjoying
an increase in non concessionary travel since the introduction
of the concessionary scheme.
3.5 Encouraging older people out of their cars
also has certain environmental benefits, as well as helping older
people to spend their disposable income in local economies. Given
the present economic situation, such things must be encouraged
rather than curtailed.
4. IMPACT OF
THE COMPREHENSIVE
SPENDING REVIEW
(CSR)
4.1 On a practical note, it should be acknowledged
that it is still relatively premature to provided specific examples
where reductions or cuts to concessionary services have already
been made as a result of the changes in the CSR. However, we can
at this stage point to the factors that will have a detrimental
effect, such as:
— Major
cuts in local authority spending.
— Cut
in the BSOG of 20%.
— Economic
slump, including unemployment, resulting in reduced bus patronage.
4.2 Research conducted by the NPC has already
highlighted some potential long-term indicators of the effects
we face:
— National
Express West Midlands has reported a loss of 7,000,000 passenger
journeys in the last year.
— As
a result, fares will inevitably rise, which in turn will do little
to increase passenger numbers or expand the bus network.
— Bus
services have been removed from some estates to concentrate on
main corridors, resulting in a loss of network coverage and practical
hardship for some individuals and communities.
— Times
between services are being extended, thus reducing overall numbers
of buses, and increasing the waiting time of passengers, particularly
when cancellations occur.
— Existing
provisions that fall outside the statutory minimum, such as free
bus travel before 9.30 am, have reverted to the less generous
legal requirement.
4.3 There are also specific concerns regarding
the impact that cuts would have on community transport schemes,
which are often seen as an alternative to bus travel, particularly
in rural areas. The availability of schemes such as dial-a-ride
and taxi-card is already being restricted and, as they fall outside
the statutory requirements of the 2007 Act, are likely to be among
the first casualties of reductions in local authority funding.
However, these services remain of vital importance to individuals
with restricted mobility or in areas where traditional bus services
are either limited or non-existent. Removing this essential lifeline
will therefore have a devastating impact on these users.
4.4 Bus companies may also begin to review their
access standards to socially necessary services, by raising the
minimum patronage threshold and/or lengthening the maximum walk
distance to a bus service. Either or both of these would generate
savings for the company, but at the expense of network coverage
and access to some of our most vulnerable older citizens.
5. CONCLUSION
5.1 There remains a view that the provision of
the concessionary bus travel scheme is a benefit solely to the
individual, rather than as something which can also benefit local
communities. It is important that reducing the funding to such
a scheme is not therefore seen as a painless option. There are
currently an estimated 8m bus pass holders; and a significant
proportion have either limited access to alternative transport
or mobility problems. Cuts to services will therefore be felt
widely across the country.
5.2 There is a urgent need for a greater understanding
of the complexity of the finance associated with the concessionary
travel scheme and for the Department for Transport to simplify
the financial arrangements to achieve a greater transparency,
auditing and control over how the grants for concessionary travel
are being used.
5.3 In the meantime, the NPC has already conducted
some initial research into the changes taking place to existing
bus service provision, and plan to carry out further research
later in 2011. The Select Committee may also wish to re-visit
this inquiry once more experience and data is available.
January 2011
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