WLGA Responds to WAG review of free concessionary travel scheme in Wales
05 August 2009
The concessionary fares policy was introduced by WAG back in 2002 for women over 60 and men over 65 and disabled people of all ages (men aged over 60 were added in 2002/3).
Local government involvement
WAG administers the scheme by providing financial support to local authorities in Wales (the scheme is different to that operated in England). As a result of WAG funding, local authorities can provide free travel for residents of Wales aged over 60 years and disabled of any age, at any time of day on registered local bus services. Each local authority runs a scheme with operators, in accordance with guidance from WAG. Payments under the scheme are based on the county of residence of the free pass holder making the trip (as clearly travel can be across authority areas). Repayments to operators are calculated by authorities using a formula specified by WAG, based on the adult single fare and using a ‘generation factor’ to arrive at a payment for each operator based on number of eligible travellers they have carried.
The total cost of the scheme in Wales has increased over the last few years. With a fixed pot of money to support bus transport within WAG, continued growth in the cost of concessionary fares is putting pressure on other budget heads, such as the Local Transport Services Grant, which helps local authorities support non commercial services (evenings, weekends rural services etc). WAG has indicated it would like to review the formula and has asked WLGA and ATCO (Association of Transport Coordinators) to discuss this with them. A number of meetings have taken place to date and WAG has met, separately with the Confederation of Passenger Transport (CPT). The next step is that WAG is arranging a combined meeting with WLGA/ATCO and CPT to consider possibilities.
Issues for local government with the scheme
Local government is supportive of the scheme which has brought more than half a million free bus passes into circulation. It has also led to operators reinvesting in their fleet and we have seen service improvements - in the quality of the fleet (including ‘greener’ and more accessible vehicles) and increases in the frequency of services – all of which we welcome in terms of meeting wider goals of tackling climate change / sustainable development. The scheme is funded in full by WAG and it is vital that this continues to be the case. WLGA/ATCO recognise the difficulty caused by the increasing cost and have agreed to engage in talks to ensure affordability and value for money for the scheme in the future. However, we will want to ensure that the total amount of money available to support bus transport is not reduced by any review.
WAG have given a commitment that the level will be maintained. Local government is reassured by WAG’s commitment to the principles set out in the concessionary travel scheme allowing pass holders free travel in Wales. Indeed, WAG is not proposing any change to pass holders’ entitlement. What they are looking at revising is the reimbursement arrangements. Local authorities, with the Confederation of Passenger Transport will be meeting with WAG to discuss the reimbursement arrangements more fully and to consider how best to progress the issue. The purpose of the review is to relieve pressure on free concessionary bus travel enabling the Assembly Government and local government to target funding where it is most needed.