Thursday 13th February 2025
(6 days, 19 hours ago)
Grand CommitteeBus Services (No. 2) Bill [HL] 2024-26 View all Bus Services (No. 2) Bill [HL] 2024-26 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 54-III Third marshalled list for Grand Committee - (12 Feb 2025)
Baroness Pidgeon
“Impact on rural areas(1) Within six months of the day on which this Act is passed, the Secretary of State must lay before Parliament a report detailing the impacts of the provisions of this Act on rural areas.(2) For the purposes of this section “rural” refers to areas so defined by the Rural Urban Classification.(3) The report in subsection (1) must include, but is not limited to—(a) an assessment of the level of bus service provision in rural areas including frequency, coverage, and accessibility;(b) an evaluation of how the provisions of this Act affect access to public transport for residents in rural areas, with a focus on affordability, reliability, and inclusivity;(c) a review of the potential economic, social, and environmental impacts of any changes in transport services or infrastructure in rural areas as a result of this Act;(d) recommendations for any further actions or policies that may be required to ensure that rural areas are not disproportionately impacted by the provisions of this Act.(4) The report must be accompanied by a statement from the Secretary of State on how the findings of the report will be addressed, including any further steps to mitigate negative impacts on rural areas, if applicable.”Member’s explanatory statement
This amendment requires the Secretary of State to publish a report within six months on the impacts of the Act on rural areas.
Baroness Pidgeon (LD)
Amendment 49 picks up on a crucial issue that I highlighted at Second Reading and said would be a key theme from these Benches: ensuring that rural areas receive a proper bus service for those often isolated and smaller communities. I thank the noble Lord, Lord Hampton, and the noble Baroness, Lady Grey-Thompson, for signing this amendment.
Rural areas remain severely underserved when it comes to bus services, with provision often unreliable and inadequate. As I have mentioned previously, in areas such as North Shropshire an estimated 63% of bus miles have been cut since 2015. These reductions have had a significant impact on communities.
In general, urban local authorities have above-average levels of bus use per head when compared with rural areas. Department for Transport data shows that, for the year ended March 2024, in Brighton and Hove there were 147 passenger journeys per head of population, alongside Nottingham on 126. This compares with rural areas such as Rutland on three per head, Cheshire East on seven, and Somerset and Shropshire on eight per head of population. That is hardly surprising when these areas have seen significant cuts to their bus services in recent years.
Our amendments on socially necessary bus services, which we debated on Tuesday, would help address this issue, but so would this amendment, which would require the Secretary of State to publish a report within six months of the Act on the impact it is having on rural areas. We hope this focus on our rural communities will help to drive the integration and quality of bus services that our rural and smaller communities and villages deserve. This analysis would be a timely assessment, allowing for a prompt evaluation of the legislation and its impact on rural communities, and would help inform decision-makers, including local transport authorities, and ensure that rural communities’ needs are being met, improving their quality of life and access to services.
I draw attention to the evidence submitted to the Commons Transport Select Committee by the Campaign for National Parks, which flags that visitor travel is an important element of rural transport but that this aspect is often overlooked when considering the role of buses in connecting rural communities with nearby towns and cities. It particularly flagged the access to national parks by public transport. This adds another dimension to our amendment when considering rural bus services.
There are further amendments in this group that also look at rural bus services and villages and cover other important areas, to which I look forward to hearing the Minister’s response. I beg to move.
Lord Berkeley (Lab)
My Lords, I rise to speak to my Amendment 62. The amendment from the noble Baroness, Lady Pidgeon, to which she has just spoken, is a very relevant one, and I think I spoke a little bit about it previously.
I suggest that it is important to know what we mean by public transport. This buses Bill is a great development of that, because it is designed to take people who do not have cars, or perhaps do not want to use cars, to shopping, to doctors and hospitals, to visit friends and relatives or whatever—to get around for communication. Of course, as the noble Baroness, Lady Pidgeon, said, it is just as important in the rural areas as in the cities.
One element that I have discussed briefly with my noble friend the Minister is if people cannot get across because there is water in the way. Some of the water has bridges; some does not. Some has big ferries and some has small ferries, and, of course, many of the bridges are tolled. The River Tamar has a tolled ferry and bridge combined. The toll is not very high and you pay it only one way, which is interesting. There are smaller river crossings in Cornwall and many other places where people pay a few pounds to get across. Many people moan at the cost, especially if the tolls are private-sector operated, but they have to cover their costs and most of them are pretty reasonable.
There is a big campaign at the moment about the cost of ferries to the Isle of Wight. There are several of them, as noble Lords know. I do not express an opinion on the campaign or the cost, but people are suffering from an unreliable service, which affects them going to work, college, hospital and so on. For a big population—it is probably more than 100,000—that is quite significant.
On the Isles of Scilly, where I live, there are only 2,500 people but they still have to get to hospital and go shopping when the shops on the islands do not provide what they want. The costs there are pretty mind-boggling. In the summer, you cannot get from the mainland to the Isles of Scilly for less than £100 single. For some people, such as those on the national minimum wage, that is quite significant. If you want to fly, which has the added advantage of being a bit quicker—although it does not like the fog very much and so gets cancelled quite often—the cost sometimes goes up to £150.
This may be a situation where there should be some kind of public service obligation for a ferry, which is probably the cheapest and most reliable form of transport, but the ferry does not go in the winter. You can go on a jet boat, which carries 12 people and takes a couple of hours. If it is not bumpy, it is quite comfortable; if it is bumpy, I leave that to noble Lords’ imagination. Something needs to be done to provide some kind of reasonable public service for the 2,500 people who live on those islands and many others like them.
My Amendment 62 is designed to ask my noble friend to produce a report within six months. I am afraid he will be busy if he accepts all these amendments, but I would very much welcome some response. This is a problem for people who have less access to what is properly proposed in the Bill, which I very much support.
Baroness Pinnock (LD)
My Lords, this is an eclectic mix of amendments. My Amendment 53 focuses on effective governance arrangements, which are key to an effective transfer of powers to local transport authorities, leading to effective delivery of these significant and welcome changes to improve public bus services. The Government’s devolution proposals to create strategic authorities will, I presume, transfer responsibility for bus services from the existing arrangements to these new authorities. At the very same time, those areas of England with a two-tier system of local government will also be undergoing major changes as district councils are abolished and unitary councils are created.
Together, these reforms will result in considerable change in the administration of both local governance and elected governance, decision-making and accountability. Clearly, this is also happening—all three things together—at a time when the responsibility and accountability for public bus services occur and major powers are transferred to local transport authorities. Hence Amendment 53 in my name, which is there to probe what consideration the Government have given to providing guidance and support to those areas of local government that are subject to these significant changes.
Can the Minister share any insight into the arrangements that will be put in place to support councils during this transformation of their local transport responsibilities? For example, it is often necessary to aid effective change with initial additional resources, whether funding or access to experience and knowledgeable advice. The measures in the Bill will transform public bus services but, in my view, what must not happen is transformational change failing or being beset with difficulties for want of preparation on the governance side of the equation.
I feel quite strongly that this is an important area of the change that will take place but that it has perhaps not been given sufficient thought in the Bill, as it is presented to us. I look forward to the Minister’s response.
The Lord Bishop of St Albans
My Lords, I rise to speak in particular to Amendment 49 in the names of the noble Baronesses, Lady Pidgeon and Lady Grey-Thompson, and the noble Lord, Lord Hampton, as well as Amendment 78 in the name of the noble Baroness, Lady Jones of Moulsecoomb. I remind the Committee of my interests as president of the Rural Coalition and a vice-president of the LGA.
The purpose of these amendments is to ensure that the Bill works to the benefit of rural communities. Transport in rural areas—and, often, the absence of it—has been a persistent problem. Poor service planning in rural areas, cuts in services and ill-considered centralisation have been repeat offenders, and we must make sure that the Bill does not miss the opportunity to improve things. While other government departments carry on planning their services based on urban delivery models, the costs they save by doing so are passed on to the providers of rural transport or rural individuals themselves.
Rural transport cannot be left to the market alone, even where there are state-directed requirements for socially necessary services to be taken into consideration. Franchising has the potential to be a solution to the rural public transport problem, but it must include cross-subsidy between rural and urban areas, and seasonal cross-subsidy when visitor income can be used to support wider community needs. It is vital that the requirement in the devolution White Paper not to leave orphaned rural areas off the map of strategic authorities also applies to bus franchising.
When and if bus franchising is done right and rural public transport can be meaningfully relied on by residents, it is a step towards enabling the rural economy’s productivity to increase and for it to make the contribution it is capable of towards national growth. Without tackling this, it will continue to lag behind. The Rural Coalition, of which I am president, recently published a Pragmatix report looking at the huge untapped potential of rural areas in contributing to the economy of our nation. But we need to get certain things right, of which transport is one.
For these reasons, it is not only prudent but urgently necessary that the Bill includes requirements to produce a rural impact assessment, as outlined in Amendment 49 from the noble Baroness, Lady Pidgeon. Government policy has an unfortunate track record of not appearing to rural-proof things properly. I have pressed the Minister in the Chamber on this a couple of times recently, asking for help on the strategies and matrices being used by government departments on rural-proofing. So far, I cannot get any information on that. This amendment, alongside Amendment 78, would help us move forward.
Lord Hampton (CB)
My Lords, I will speak briefly to Amendment 49, to which I added my name. I will also speak to Amendment 78 tabled by the noble Baroness, Lady Jones. These are two very similar amendments saying pretty much the same thing. Their timeframe is different, but if we are to have this new Jerusalem of connected bus services that help people—the noble Lord, Lord Berkeley, commented about the outer fringes—we really need to know that this is happening. We need to concentrate it and we need it reported back to us.
Baroness Grey-Thompson (CB)
My Lords, I will speak to Amendment 49, to which my name is attached, and remind your Lordships that I am president of the Local Government Association. From 2011 to 2023, England saw a 20% reduction in bus service provision, adjusted to a 28% per capita decrease amid population growth. The withdrawal of essential bus routes has isolated residents, particularly the elderly and vulnerable, from critical services and social opportunities. Despite overall national decline, particular regional disparities have hit areas such as North Yorkshire, Rutland, Shropshire and Slough. The government investment of £3.5 billion since the pandemic into initiatives such as the £2 fare cap and examples of community-led efforts to subsidise services demonstrate awareness of the problem, but this alone cannot create a more comprehensive bus network.
Transport for All believes that the Government’s proposed increase in funding is an opportunity to address the challenges faced by rural areas. However, in rural areas disabled people are more likely to rely on buses than non-disabled people. They are often impacted by inaccessible bus stops and poor connectivity, but buses are essential for accessing employment, healthcare and social inclusion. Rural bus services often exacerbate isolation and inequality, highlighting the urgent need for reforms that prioritise accessibility and inclusivity as an absolute must. In a survey carried out by Transport for All, 48% of respondents cited barriers to access on buses.
The English national concessionary travel scheme—ENCTS—is fantastic, but it cannot be used before 9.30 am, which creates barriers to employment for disabled people in these areas. New funding has been announced for rural and smaller authorities to provide for ENCTS enhancements. This would promote greater accessibility, similar to that in areas such as London and Merseyside, where disabled people can travel for free at any point of the day. It is really important that we look at this in rural areas—otherwise, it is going to exclude lots of people.
On the second day in Committee I covered issues on the accessibility of bus stops, ramps and shelters. This is even more important in rural communities, where there might be several hours between bus services, but we should also recognise that buses are critical to the local economy. Buses are socially necessary in rural areas, and it is vital that these services are maintained and expanded to meet community needs, especially for disabled people.
Lord Snape (Lab)
My Lords, it is impossible to disagree with the amendment that the Committee is discussing. We have heard the usual comprehensive proposals from the noble Baroness, Lady Pidgeon. I rise only to ask that if she is not happy—and none of us could be happy about the decline in rural bus services—how can that decline be reversed and who will be responsible for reversing it? Presumably, the Government will be expected to adequately fund the sorts of services that the Liberal Democrats and the right reverend Prelate envisage. We all know that is not going to happen in the short term. No doubt, it will enable the Liberal Democrats to blame somebody else—
Lord Snape (Lab)
Well, life is not fair. These are the realities of running bus services. I just remind the noble Baroness who accuses me of not being fair that I used to chair a major bus operator. It was employee-owned for much of the time and faced the same financial constraints and problems under the coalition Government—of which, if I remember rightly, the Liberal Democrats were a part.
Baroness Jones of Moulsecoomb (GP)
Stop being snide. I am sorry—I should not intervene, as I came late.
Baroness Pinnock (LD)
As far as I have heard on this third day in Committee and at Second Reading, there has been a majority consensus for the Government’s proposals. What we are trying to do is to draw out those issues that we hope the Government will be able to address. One, as we have heard this afternoon, is rural bus services—and, indeed, access for island services. Equally, we understand that that will probably mean more funding. We had a debate on that on an earlier day in Committee. This is not about criticism or blame; it is about pulling out the issues.
Lord Moylan (Con)
I wonder if I could interrupt the noble Baroness to say that I hope that she realises that this Bill does not give the Government powers to run bus services. The whole point of this Bill is to give powers to local government to run bus services. When she says, “We want the Government to address these issues”, it is unclear to me to what she is referring. If she says that she wants the Government to provide funding to address these issues, that is fine, but if the funding is to be specific and hypothecated to particular purposes—say, to the crossing of bodies of water or certain rural services—then what is the point of giving the powers to local government? They should be making those decisions, wherever the funding comes from. I find the Liberal Democrat position on these provisions very difficult to follow.
Lord Snape (Lab)
I am not sure who is giving way to whom at the present time. I will come to the noble Lord, Lord Moylan, in a moment or two, because I would be fascinated to hear his summing up of this matter—I wait with bated breath. Having gorged on those subsidies when he worked for TfL, while his party denuded the rest of the country of bus services, his response will be absolutely fascinating.
I ask the noble Baroness—I hope without causing too much offence—that if these proposals are to be properly implemented, who will provide the finance? It has to be either local or central government. The reality of these matters is that, in the short term, there will not be a massive improvement in rural bus services once this Bill becomes law. I only wish that the opposite were true. Perhaps my noble friend the Minister can reassure me that it will be true. However, until we know exactly how funds will be allocated and how great those funds are, I must say to the noble Baroness, Lady Pidgeon, that, as ably as she moved this amendment, it is, as far as I can see, rather typical of the Liberal Democrats—all motherhood and apple pie.
Lord Burns (CB)
My Lords, I mentioned at Second Reading that I had been chairman of the North Wales Transport Commission in 2023-24. I spent a lot of time in north Wales looking at the performance of the bus services there. I am wholly persuaded of the merits of a franchising system in rural areas as well as in more urban areas, because we all know the problems that the existing system has created. However, I should point out—this follows the previous intervention—that doing this work and deciding which routes need to be run and where people wish to go is a time-consuming business. It will take a significant period to monitor where the car journeys are presently being taken and what kind of network is best going to meet the needs of people. I find the notion that there should be review of this within six months or even two years very ambitious, because in the work that I was engaged in it was time-consuming to get anywhere near a feel of how to create an integrated network rather than just a set of buses that were serving individual parts of the of the area.
Lord Moylan (Con)
My Lords I am grateful to everyone who has spoken in this debate. We on our side are supportive of the importance of taking into account the needs of people dwelling in rural areas. Indeed, we have our own amendment to a very similar effect in a later group, which could have been disposed of here. Our proposal to the Liberal Democrats was that it be wrapped up with their proposals, but that was rejected, so now it is going to be debated as a separate group, somewhat repetitiously, towards the end of the list. So we generally support this.
A lot of what I wanted to say has been anticipated. I know that he does not like the fact that he and I agree on quite a lot of things, but the noble Lord, Lord Snape, has brought a dose of sensible realism to the debate, for the first time, perhaps, in our Committee. He was supported in that endeavour by the noble Lord, Lord Burns, with his practical knowledge of having examined the bus routes, the lack of bus routes and the potential bus routes in north Wales.
The noble Baroness, Lady Pinnock, said that this Bill will transform bus services. As shorthand for an aspiration, that is fair enough, but the Bill in itself is not going to transform bus services at all, although that might be the aim. What it is going to do is transform the governance of bus services in two ways, both of them subject to the provision of very large amounts of money, which can come only from central Government and which is not apparent at the moment, although we are all aware that a spending review is in hand. Who knows what will happen? You stick in your thumb and pull out a plum. Who knows what is going to arrive for bus services or rural bus services when the Chancellor has completed her work? At the moment, we cannot say. We can say only that a large amount of money will be needed.
The two respects in which the governance will be changed to which I wish to draw attention are, first, that operational decisions about the running of buses are going to be transferred fundamentally from managers of bus service companies, who have a great deal of experience, to committees of councillors with very much less experience. They will take advice, no doubt, and the Government have said that they are going to offer them the advice of the Bus Centre of Excellence to do the sorts of things that the noble Lord, Lord Burns, referred to. They include, particularly, route planning, but these councillors will also be responsible for fare setting, and fares and ticketing is a great skill and art. We might all think that it is terribly easy to decide on a bus fare, but the whole business of fares and ticketing is a professional and skilled business. There is a great deal that they are going to have to do which they will now be responsible for, which previously they were not, with very little skills support because the Bus Centre of Excellence is a relatively small operation.
The other way in which the governance is going to be transformed—and this is what relates to my three amendments in this group, which I will dispose of briefly in a moment—is that for the first time, effectively, the Secretary of State is going to be issuing guidance that will shape the provision of bus services in a way that simply is not the case when bus services are provided privately. As far as I am aware, that is not the case in Manchester, let us say, where there is no great guidance coming from the Government. Manchester has adopted franchising powers already. But there will be guidance and the local transport authorities, in providing bus services, are going to be subject to it.
The Minister of State, Department for Transport (Lord Hendy of Richmond Hill) (Lab)
My Lords, Amendment 49 in the names of the noble Baronesses, Lady Pidgeon and Lady Grey-Thompson, and the noble Lord, Lord Hampton, and Amendment 78 tabled by the noble Baroness, Lady Jones, seek to place a statutory requirement on reviewing the Bill’s impact on rural areas and villages. I also heard clearly the point from the right reverend Prelate the Bishop of St Albans—and, incidentally, I agree with him about the need for cross-subsidy to help bus routes that are not in themselves profitable.
I note and understand the importance of serving villages and rural areas. Indeed, the Government intend the choices available to local transport authorities in the Bill to address just those points—including, for the avoidance of doubt, as we discussed this on a previous day, the appropriate use of demand-responsive transport.
The monitoring and evaluation of the Bill, which include the impact on rural services, will be completed as part of a wider evidence review of bus franchising. It will take several years—up to five years—for local authorities to transition to a franchised network or to form local authority bus companies, so any review prior to this would not be able to consider the full impact of any such transition. I listened very carefully to the noble Lord, Lord Burns, and I have very high regard for the work that he did in both south Wales and north Wales; he made elegantly that very point. In addition, the full impact of franchising is not expected to be seen until franchising schemes have been operating for some time. Therefore, the timing of a full assessment of impacts on local services needs to reflect that timeline.
I say to my noble friend Lord Snape that while a dose of realism is always a good thing in a discussion about the future, the evidence from the stages of franchising in Manchester is that a remarkable change in both the reliability of the bus service and the volumes of patronage and revenue has been seen as a consequence of the introduction of franchising in various phases.
Lord Snape (Lab)
I respectfully point out that Manchester is scarcely a rural area, and the amendment from the noble Baroness, Lady Pidgeon, specifies rural areas. It might be a bit more difficult to run cross-country services in rural areas than it is to run a franchising operation in cities such as Greater Manchester.
Lord Hendy of Richmond Hill (Lab)
Indeed. I am grateful to my noble friend for that observation. I should have also mentioned the situation in Cornwall, which is more or less franchising and in an area that can be called rural, where the consequence of a decent set of organised services in a rural area has been a considerable increase in patronage. My noble friend’s point about realism is right, and I think the real point of what he was saying is that these things take some time to mature and come into effect.
On rural areas, there is no doubt that considerable damage has been done to public transport by an approach necessitated by the previous Government’s funding mechanisms, which have reintroduced routes that were withdrawn, withdrawn again routes that were reintroduced and given a lack of continuity to services that need it in order for people to rely on them.
I thank the noble Baroness, Lady Pinnock, for bringing forward Amendment 53 about statutory changes to local council powers. The Government believe that such changes will be wholly beneficial to communities in the United Kingdom. There may be legislation in this Session that alters the powers of local councils to provide them further powers on transport. Given the proximity in timing of any such legislation to this Bill, it would not be appropriate to provide such a review, as the powers would not have had sufficient time to be in force.
I appreciate that this Bill and the English devolution Bill, as well as the forthcoming railway reform Bill, will or may have related provisions to enhance the role of local councils, and we will work closely across and between departments to ensure that they most effectively give local councils control over their own transport networks. In respect of buses, the extensive guidance already available on enhanced partnerships in franchising from government, and the Bus Centre of Excellence, which has been referred to previously, will be available.
Amendment 62 in the name of my noble friend Lord Berkeley would introduce a statutory requirement for the Secretary of State to review within six months the Bill’s impact on certain local transport services. I refer to the remarks I have already made about the length of time it would take to take a good view about changes. I know that my noble friend is a long-standing campaigner on ferry services and the important role they play in connecting communities. I also note his description of the ferry service to the Isles of Scilly as “bumpy”, which is undoubtedly true. I agree that these services provide a crucial lifeline for many communities and ensure that people can access essential services, as he says.
The noble Lord also asked at Second Reading about tram services. Again, they are an important part. However, the meaning of this Bill is clear: it is focused on the provision of local bus services and a tram is clearly not a bus—a ferry is even less so. On ferries, though, I understand that the Isles of Scilly Council has been in touch with the Ministry of Housing, Communities and Local Government regarding both this matter and broader support for the islands. I hope that the noble Lord will note that I have said that.
Turning to Amendment 73, I thank the noble Lord, Lord Moylan, and the noble Earl, Lord Effingham, for bringing it forward. The Committee will have heard the noble Lord’s remarks about the handling of passenger complaints. The Government remain committed to ensuring that services are continuously improved with passengers. This amendment is consistent with our approach to rail, for which guidance on how to resolve complaints already exists. I agree with the noble Lords that it is important to deal with complaints properly, but it is my view that, apart from the handling of the original complaint, the resolution role sits with passenger watchdogs. The department is in the process of undertaking work with existing passenger watchdogs—Transport Focus and London TravelWatch—and bus stakeholders to identify issues and make recommendations on embedding standardised complaint-handling processes, ensuring that passengers have clear escalation. I agree wholeheartedly with the noble Lord that the way to deal with complaints is not to file them in the waste-paper basket, but I do not wish to cut across the engagement that is currently under way.
I shall now address the points from the noble Lord, Lord Moylan, about help for local transport authorities in route planning and fare setting. Of course, he has missed the fact that virtually every local transport authority in Britain has existing experience in both since, for the past 40 years, they have had to tender services that have not been found by commercial bus services to be worth running. I cannot believe that there is a local transport authority in the country that does not have some experience of both route planning and fare setting.
Amendment 79B in the name of the noble Lord, Lord Moylan, seeks to impose new requirements on the provision of real-time passenger information. I absolutely agree with the noble Lord that ensuring that passengers can access high-quality, real-time information about their services is critical, but he will, I hope, be aware that there are existing obligations on bus operators. The Public Service Vehicles (Open Data) (England) Regulations 2020 provide the foundation for those obligations and, from these regulations, the Bus Open Data Service was launched in 2020 to facilitate the provision of high-quality, accurate and up-to-date passenger information across England, outside London. The Government will continue to work with local authorities and the sector to help drive improvements in real-time information.
I know that the noble Lord will have noted the part of our earlier discussion about the requirement in this Bill to ensure that real-time information is available on an accurate basis; the worst thing you can have is inaccurate real-time information. However, this Bill is also about empowering local areas. Part of that is trusting them to take decisions on what is best for the communities that they serve and working with them constructively, particularly in areas where there are existing regulations to ensure that services are improved. This is why I believe that the noble Lord’s Amendment 79B is not necessary.
Turning to Amendment 79D, again I thank the noble Lord, Lord Moylan, for bringing it forward. As he said, it is about working with local transport authorities and airport operators, but I do not believe that the amendment is necessary. My department is currently carrying out a call for ideas for the integrated national transport strategy, which will set out a single national vision. This will have people who use transport and their needs at its heart and will empower local leaders to develop integrated transport solutions. As part of the Bill, we want better links across modes—links that connect people and businesses and support the economy. We are working with operators, local authorities and passengers in that way to deliver more reliable public transport networks in general. The noble Lord will, I hope, understand that I do not wish to cut across the engagement on the integrated national transport strategy that is currently under way.
Lord Berkeley (Lab)
I am grateful to my noble friend the Minister for his remarks in response to my amendment. He said in passing that a tram is not a bus, which is of course true, but it often fulfils the same role as a bus by moving lots of people in relative comfort. A lightweight tram scheme is now being built in Coventry, which I hope will be working in the next few years. It is very much cheaper to build, which is excellent, because it needs lighter track work. However, the question of who decides the timetable and fares of that tram and any bus service that Coventry City Council might wish to encourage will need looking at in future. Has the Minister’s department thought about that?
Lord Hendy of Richmond Hill (Lab)
I thank my noble friend for his intervention. First, the ultra-light tram development in Coventry is still a tram—it has steel wheels on steel rails, so it is still a tram. Secondly, all those schemes, even ones that will, I hope, produce a relative reduction in capital cost, have to be considered through the Transport and Works Act orders and other mechanisms for building infrastructure. The consequence of that is that those schemes are generally under the control of public authorities and are almost always in urban areas. One of the consequences of the freedoms that this Bill will give to local transport authorities will be the introduction of franchising, binding together all the public transport services in those conurbations, including both timetables and fares, to give an integrated service to citizens who live in those towns and cities.
Baroness Pidgeon (LD)
The Minister has clearly heard the strength of feeling from across the Committee about rural communities and the importance of connectivity and access to bus services. The comments of the noble Lord, Lord Snape, about funding are important, because funding is always the elephant in the room. But what we are discussing are new measures, including franchising, which will be the new tool to help local government and local transport authorities to address some of these socially necessary routes—not profitable routes—as part of bus route packages. Our amendments simply try to improve this legislation; we are very supportive, overall, of its aims. I am reassured to have heard from the Minister about this wider review and ensuring that rural communities and areas are part of that, so I am happy to withdraw my amendment.
Baroness Pidgeon
“Review of bus fare impact on patronage(1) Local transport authorities must conduct a comprehensive review of the impact of bus fares on passenger patronage within their jurisdiction.(2) The review may assess—(a) how fare levels influence ridership trends,(b) the social, economic, and environmental outcomes of current fare structures,(c) potential changes to improve accessibility and increase patronage, and(d) potential benefits, if any, of the simplification of ticketing systems for the purposes of increasing bus patronage.(3) The first review must be completed and published no later than six months after the date on which this Act is passed.(4) Subsequent reviews must be conducted at least once every three years, and made publicly available.(5) In conducting the review, local transport authorities must consult relevant stakeholders, including public transport users, service operators, and community representatives, and any other stakeholders deemed relevant by the local transport authority.”
Baroness Pidgeon (LD)
My Lords, Amendment 51 would require local transport authorities to carry out a review of the impact of bus fares on passenger numbers within their area. The review must look at how fare levels are influencing numbers; the social, economic and environmental outcomes of the current fare structure; ways to simplify ticketing systems; and changes to increase bus patronage and improve accessibility. This review should be carried out within six months of the Act passing and every three years, working with all key stakeholders.
We feel that there is a significant gap in the Bill relating to fares. The final-stage impact assessment states:
“Increased fares, unreliable services and fewer routes would likely drive more people away from buses, further reducing passenger numbers”.
Helen Morgan, Member of Parliament for North Shropshire, told me that Shropshire has lost more bus routes than any other county and that the £2 fare cap was not introduced in Shropshire. Fares are significantly higher and a six-mile journey into Shrewsbury can cost as much as £6.20. It is therefore essential that local transport authorities assess the impact that fares are having, alongside other factors, in the provision of local bus services following the implementation of this Bill.
I also have Amendments 74 and 80 in this group, which together place a limit of £2 on single journey bus fares, which can be reviewed every three years and adjusted by statutory instrument. The increase in the bus fare cap from £2 to £3 has created real barriers for passengers, particularly those on low incomes who rely on buses to go about their everyday lives. The £1 rise per journey adds up quickly, straining already tight budgets and forcing difficult choices between transport and other essentials. For rural communities where alternatives are few, the impact is even greater. Without addressing fares in this Bill, we risk deepening existing inequalities and leaving many people isolated. I remind Members that the final stage impact assessment states:
“There may also be benefits associated with increasing bus usage through lowering fares”.
We also strongly believe that affordable public transport promotes greener travel choices. It helps to cut carbon emissions and eases road congestion. In many parts of the country, it remains cheaper to drive than to take the bus. This is a disincentive, and putting a £2 cap on bus fares would go some way to helping to address it. This legislation is about improving bus services and enabling local authorities to have a choice about how local services are provided, but unless there are affordable bus fares, there is a huge hole in this plan. I hope the Minister can address these concerns and respond to our proposal to keep bus fares affordable across the country.
On the previous group we had a discussion about real-time passenger information and open data. Another issue linked to the price of fares is the accessibility of purchasing tickets. There has been a transformation in purchasing rail tickets, despite the fare structure being incredibly complex, through tech innovation and apps. One would want to see, as part of these changes to improve bus services, bus retail being opened up to third-party organisations to allow innovation and the ability for passengers to purchase bus tickets or rail-bus packages. When the Minister comments on our amendments, will he also reflect on improving the Bus Open Data Service and on how opening this area further might transform the passenger experience? I beg to move.
Baroness Jones of Moulsecoomb (GP)
My Lords, this group is full of sensible amendments. I will speak to the two in my name, Amendments 77 and 79. Amendment 72 is about the concessionary travel scheme—the £2 fare cap—which has been an immense success. In the village where I live in Dorset, it has changed people’s lives. All sorts of people now do not use their cars, which saves them an awful lot of money that they can spend on things such as heating. They do not need to use their cars, they do not need to pay for parking, and they do not need the maintenance of their cars. It has made a huge difference, and many of those people are not looking forward to it going up at the end of the year to £3. It definitely increases usership. It was interesting to read Amendment 63 from the noble Earl, Lord Effingham, and the noble Lord, Lord Moylan, presumably in support of the £2 fare cap, which I think is wonderful.
Amendment 79 is about a slightly different issue. It is about encouraging children to start using buses. Most children in the area I live in have to use buses to get to school if their parents cannot afford a car or cannot afford to drive them. I think it is very good practice to get children on the buses early and encourage them to understand that it is something that everybody can do. Also, to some extent, it is a little bit of independence for them. As a Green, I struggle slightly with the idea that any travel should be cheaper than walking and cycling. However, in this instance I think it is sensible to make bus travel free for children, simply because there are so many other accumulated costs on their parents. I think this would be a very good move.
The Earl of Effingham (Con)
My Lords, I rise to speak to Amendment 63 standing in my name. We are fully aware that fares must contribute to funding our public transport system, particularly when it comes to meeting essential social needs. However, we must also acknowledge the significant impact that fare levels have on passenger demand. This is especially relevant given His Majesty’s Government’s recent decision to raise the bus fare cap by 50%.
We are proud of our own record, particularly in extending the £2 bus fare cap throughout 2024. That policy, as we have just heard from the noble Baroness, Lady Jones, provided crucial support to passengers across the country, especially in low-income areas where bus services are a lifeline for many. It is therefore imperative that we fully understand the impact of increasing fares on those who rely most on these services.
This amendment seeks to ensure that the Government carry out and publish a comprehensive impact assessment on the economic and social consequences of removing the £2 bus fare cap. This assessment must include, but not be limited to, the potential impact on passenger numbers; the financial implications for local transport authorities; the effect on accessibility for those who depend on bus fares for essential travel; and the impact on passengers’ ability to reach socially necessary services, as defined in Clause 12.
We do not believe that His Majesty’s Government conducted such a detailed assessment before announcing the increase to the fare cap. However, they still have the opportunity to do so now. By undertaking that assessment, the Government can ensure that future decisions are based on sound evidence and a clear understanding of the impact on those who depend on public transport the most. For those reasons, I urge the Minister to consider this amendment and commit to a full and transparent assessment of the impact of increasing the bus fare cap.
Lord Snape (Lab)
My Lords, I do not think I will offend too many people if I say that no one could object to this amendment. Fares play an important role, but I do not think we should overemphasise the role they play. Travel West Midlands, a company with which I was involved for some years, did regular passenger surveys—largely a tick-box exercise, for obvious reasons, handed out by the driver or staff at bus stops. Funnily enough, fares never topped the list of complaints; reliability, congestion and safety all came before fares for passengers in the West Midlands. That is not to play down the impact of fares on passenger carrying, but it should be kept in perspective.
As for the contribution from the noble Earl, Lord Effingham, I kept count at Second Reading, and that is 11 different reviews, reports and committees that the Conservative Party has so far advanced in the debates on this legislation. I hope that management time—or ministerial time, for that matter—can perhaps concentrate more on running effective services and less on producing reports to the demand of the Conservative Party, largely about matters that its period in office considerably worsened for the bus industry.
Lord Moylan (Con)
My Lords, I am again very grateful to all noble Lords who spoke. I am surprised that I have to help the noble Lord, Lord Snape, understand that very frequently in Committee, as a way in which to provoke some sort of debate or to probe the Government’s intentions, it might be appropriate to ask for a report without necessarily wanting to amend the Bill in that direction when we come to Report—ill named, perhaps. I am sure he realises that his jibe against the Conservative Party has fallen flat.
I was rather pleased to hear the noble Baroness, Lady Pidgeon, say that she would welcome opening things up to the private sector to develop interesting, innovative and technological apps and ways of paying. I think that is the first thing we have heard said in favour of the private sector in Committee so far.
The noble Baroness, Lady Jones of Moulsecoomb, and, in a sense, the noble Lord, Lord Snape—what he was saying was to some extent a response to what the noble Baroness had been saying—bring us to the heart of a debate that most politicians try to run away from: how bus services and other public transport are to be paid for. What is the role of fares in paying for them?
Lord Hendy of Richmond Hill (Lab)
My Lords, Amendment 51 tabled by the noble Baroness, Lady Pidgeon, would require local transport authorities to review the impact of bus fares on patronage. Where a local transport authority has delivered fare interventions to encourage patronage, such as Cornwall’s bus fares pilot and the West Yorkshire Combined Authority Mayor’s fare intervention, they have already commissioned independent evaluation reports to measure their success. Bus service improvement plans already in place also include measures addressing bus fares to encourage greater use of buses. We must recognise that changes to fares are usually delivered at the same time as other transport interventions that support and improve bus services. It would therefore be challenging to attribute any change in patronage solely to a change in the fare charged to passengers.
Your Lordships will have noted that the Government are in the process of negotiating the outcomes for which local transport authorities will be held accountable in respect of buses, as part of their recent respective comprehensive funding settlements. In addition to outcome monitoring at a local level, we will continue to monitor fare impacts at a national level to inform future fare cap decisions.
In passing, I note the noble Baroness’s observations about whether Shropshire adopted the £2 fare cap. I am informed that all except six bus services in Shropshire were covered, although I would not say that the bus network in Shropshire was either adequate or satisfactory. One of the effects of the Bill, when it becomes an Act, will be to enable local transport authorities to do better by the various means embraced within it. I therefore submit that the amendment from the noble Baroness, Lady Pidgeon, is unnecessary because of the actions already taking place.
I thank the noble Lord, Lord Moylan, and the noble Earl, Lord Effingham, for Amendment 63, which seeks to examine the impact of ending the £2 national bus fare cap. The department has prepared a full monitoring and evaluation report of the £2 national bus fare cap, which has just been published. The report is available to read and I will make sure that noble Lords present have the link to it. It suggests that urban populations are more likely to have used the scheme, where of course journeys are shorter and fares are more likely to be £2 or less. In fact, the average fare payable on buses prior to the scheme’s introduction was between £2 and £3. The Government’s adoption of a £3 cap, and the added safeguard of increases above £2 being limited to the rate of inflation, do a great deal, at the cost of £150 million, to continue to ensure that millions can access better opportunities and get greater bus use.
Lord Moylan (Con)
A study of the effect of the £2 bus cap would be very valuable—let us remember that the noble Baroness, Lady Jones of Moulsecoomb, said that in her rural part of Dorset it was transformative; I think that was the word she used about it having a significant effect in that part of the world—and we look forward to reading it. But my noble friend Lord Effingham was also asking for a study of what the effect of increasing it would be when that is introduced, which would be equally valuable and show the other part of the equation, if noble Lords see what I mean. I press the Minister because I do not want him to miss the point inadvertently. Is a similar study of the effect of increasing the cap to £3 after an appropriate period—six months or a year—something to which he can commit himself today to illuminate that picture for us?
Lord Hendy of Richmond Hill (Lab)
I thank the noble Lord for that. I will certainly think about whether, and at what stage, the department would look at that further. I am certainly not going to commit to it today, because we are looking at wide-ranging legislation about bus services in general, but I wanted to inform the Committee that the work on the £2 bus fare cap is now published.
Amendments 74 and 80 from the noble Baroness, Lady Pidgeon, also concern the £2 bus fare cap, which I have just addressed. They are clearly intended to seek its reintroduction. Bearing in mind what the average bus fare is, that the Government are proposing to continue with a £3 cap and that fares between £2 and £3 will go up only by the rate of inflation, I hope she will agree that those amendments are unnecessary. However, the noble Baroness referred to the wider retailing of bus tickets, which is obviously a good idea; from time to time, I find myself agreeing with the noble Lord, Lord Moylan. Access to bus services should be widely available, and not understanding the fare structure or being able to buy a bus ticket are the worst reasons for not using the service.
In my view, and in the Government’s view, the provisions in this Bill that allow local transport authorities a choice of enhanced partnerships or franchising, or even their own bus companies, will enable local transport authorities to look at wider retailing. Of course, the ultimate aim is not to sell bus tickets at all but for people to use credit cards or bank cards directly as means of payment. We want the bus industry and bus services to move towards that, and I believe that this Bill will facilitate it.
Amendment 77 in the name of the noble Baroness, Lady Jones, looks for a review of the English national concessionary travel scheme. The Government want everybody who needs it to have access to public transport and are committed to improving the system. The English national concessionary travel scheme costs about £700 million annually, and any changes to the statutory obligations, such as the hours in which the pass can be used being extended, would need to be carefully considered. As I said to the noble Lord, Lord Moylan, on a previous occasion in the Chamber, the Government are not considering changes to the scheme at the moment.
However, local authorities in England already have the power to offer concessions in addition to their statutory obligations. We see this in London, where individuals aged 60 and over are eligible for the 60+ Oyster card, and similar schemes already exist in other parts of the country, where local authorities have chosen to provide specific support to their communities through offers that go beyond their statutory obligation. That ability for local transport authorities will continue, and no part of this Bill will restrict it. A review into the English national concessionary travel scheme concluded in 2024, and my department is currently considering the next steps.
Amendment 79 in the name of the noble Baroness, Lady Jones, would require the Secretary of State to review the impact of making buses free for children. The Government remain committed to exploring targeted solutions that deliver value for money to taxpayers while ensuring affordable bus travel for those who need it most, particularly young people. Bus operators can choose to offer concessions to children and young people. In fact, youth concessions are currently offered by at least one commercial bus operator in 73 out of the 85 local authority areas in England outside London. Local authorities also have powers to introduce concessions or discounts for young people. Since buses are local and the Government are committed to devolution, that is where we believe that such choices should be made in respect of free and reduced-rate travel for children.
Finally, I note the observations by the noble Lord, Lord Moylan, about demanding or wanting reports following my noble friend Lord Snape’s helpful intervention. This Bill has been carefully thought through. The first requirement when it becomes an Act of Parliament will be that it works for local authorities, communities and bus passengers. No doubt there will be reports in due course but, frankly, I am not looking for any of them to be carried out now or in the immediate future because, as my noble friend observed, our efforts ought to be concentrated on running the bus service better rather than writing reports about why it does not work.
Baroness Pidgeon (LD)
I thank the Minister. I am reassured by him saying that the Government ought to continue to monitor the fare impact at a national level and will circulate the link to the review of the £2 cap. That is to be welcomed. I hope that he will drive forward the point about ticketing and modernisation because it is important for passengers.
However, I go back to the comments that I made earlier. The hefty report that I have here, the final-stage impact assessment, says:
“There may also be benefits associated with increasing bus usage through lowering fares”.
We have heard today about Cornwall’s hugely successful pilot but, if you read the trade press, it is clear that there are concerns about it continuing, and this goes back to the funding point that we discussed earlier. Probably for the first time in this Committee, I strongly disagree with the Minister about the £2 bus cap. We think that it is essential. The Minister described my amendment as unnecessary. We do not agree with that, we think that it is very necessary, but, at this stage, I will withdraw it. I am sure that we will come back to it at a future stage. I beg leave to withdraw the amendment.
Baroness Pinnock
“Training programmes on provisions in this Act and their impact on local transport authorities(1) Local transport authorities must establish and maintain training programmes to ensure staff and relevant stakeholders are informed of the provisions in this Act and their impact on the powers and responsibilities of local transport authorities.(2) Such training programmes shall—(a) provide a comprehensive overview of relevant legislative provisions in this Act,(b) focus on the practical application of these powers in policy development, planning, and service delivery, and(c) ensure compliance with legal obligations and promote effective decision-making.(3) Training must be made available to—(a) elected representatives overseeing transport functions,(b) officers responsible for the implementation of transport policies, and(c) any other individuals or organisations directly involved in delivering transport services.(4) Local transport authorities must review and update the training programmes regularly to reflect changes to this Act. (5) Authorities must publish a summary of the training programmes and participation rates annually to ensure transparency and accountability.”Member's explanatory statement
This amendment requires local transport authorities to develop training programmes to ensure staff and stakeholders are informed about the provisions in this Act and their impact on the powers and responsibilities of local transport authorities.
Baroness Pinnock (LD)
My Lords, I remind the Grand Committee at this stage that I am a serving councillor.
The changes proposed in the Bill, as we discussed earlier in the amendment on governance, will require councillors serving on local transport authorities to make a range of decisions—the noble Lord, Lord Snape, was able to list some of them—that are currently not within their purview. That is positive. It will mean that democratically elected representatives will make the essential funding decisions that underpin bus services. It enables transparent decision-making and, in turn, that enables local people, as taxpayers, to question those decisions.
Creating an open, transparent and accountable process in the bus franchising system is essential. Local transport authorities are not used to operating in this extensive way. What LTAs do now is to try to support as best they can some socially vital services when bus companies say that they are not profitable. When the measures in this Bill are enacted, the role of the LTAs will change considerably. There will be major decisions to take on the shape of bus services and the balance of provision between running profitable routes and providing a public service option for smaller communities, as well as consideration about services at night, in early mornings and at weekends. Given that none of those serving on local transport authorities is likely to have had extensive experience of the new franchising arrangements, ensuring that a training programme is available for all involved is important.
Now I come to the more radical bit. Amendment 54 in my name seeks to go a step further and require mandatory training for councillors and staff, particularly councillors serving on local transport authorities. Councillors currently serving on planning and licensing committees are making decisions within a legal framework. Exercising that responsibility within that framework while raising the concerns of the people they serve is not straightforward. Many councils, mine included, have a mandatory training requirement for any councillor who serves on a planning or licensing committee. That has helped to raise the standard of discussion, debate and decision-making. Not every council has a similar training requirement for those committees, but doing so helps everyone to focus attention on the choices available, rather than simple opposition, which, when operating in a legal framework, is often unsuccessful.
There will be many difficult and challenging decisions to be made by local transport authorities as they seek to balance routes, rural routes, fare prices, congestion and time-tabling reliability. A lot of that is within a legal framework. Therefore, an extensive training programme would benefit those sitting on those committees and help those making those difficult choices to do so in a way that they can respond to effectively when they are challenged about why they have made a decision. There will be a lot of that, I think: “Why haven’t you got a rural route for me?” or “Why haven’t you cut the fares?”. If there was that training, it would be the background for them effectively to explain the decisions that have been made. Given that, I hope that the Minister will carefully consider the merits of the amendment. I beg to move.
Baroness Grey-Thompson (CB)
My Lords, I will speak to Amendment 55 in my name and that of the noble Baroness, Lady Brinton. I tabled this as a probing amendment to continue the discussion on training to help to improve it and to try to mitigate the failures. I realise this is a rather generic amendment and lacking in much detail, but it is about getting the widest possible number of people to understand the impact on a disabled person of not being able to get on a bus.
I receive a number of emails every month from disabled people who are unable to access a service. It may be due to a broken ramp, although the bus should not leave the depot if the ramp is not working. It is also hard to get any traction on complaints, and a lot of disabled people feel that their issues are simply not understood. The issue with the space between wheelchairs and buggies is ongoing. I have experienced it myself, regardless of the High Court case of FirstGroup plc v Paulley. That does not seem to have moved things on as much as I had hoped. Then there is the issue of visually impaired people who have guide dogs, and understanding the space required for them is really important.
I recognise that a whole pile of training already happens, but I think it needs to be better. The impact of a disabled person not being able to get on a bus leads to isolation. In many cases, it is not possible for them to rely on taxis or other unsustainable modes of transport. You might be okay with taxis in a big city where they are accessible, but in lots of places around the country they are not. I probably receive emails every month from disabled people who have been refused access to taxis or charged more because of their impairment. Fewer disabled people are able to drive. Twenty-eight per cent of disabled adults live in a household without a car and only 61% hold a full driving licence, compared to 80% of non-disabled adults. This is why buses are so important.
I already mentioned how hard it can be to get redress. It is very hard to complain to the driver, especially if they just drive off, having refused access. It is also really hard to complain to the companies. They will often give an apology, but that does not fix the issue of somebody not being able to get on in the first place.
I am really interested in looking at what we can do to improve the quality of training. As an aside, I am chairing the Aviation Accessibility Task and Finish Group for the Department for Transport, and training is the number one thing that we are looking at. We are not at the point of writing up our recommendations just yet, but we are exploring raising the bar on standards and ensuring it is equally delivered across the country.
I realise the vagueness of my amendment is probably not helpful, but I look forward to continuing the discussion about how we can make it more possible for disabled people to have the same experience as everybody else.
Baroness Pidgeon (LD)
This group of amendments is really important, because training is an essential part of this new move to different models for providing bus services across the country. I particularly wanted to highlight the important amendment from my noble friend Lady Pinnock, because local transport authorities will be taking on significant new powers. We must not underestimate that, and it will be vital that their staff, stakeholders and members who sit on the authorities have a comprehensive training package, so they understand the legislation, framework and landscape—and accessibility and what that truly means, as the noble Baroness, Lady Grey-Thompson, rightly highlighted. I liken this to thinking about planning and licensing requirements and what has transformed local government over the last couple of decades in terms of training and the quality of decision-making in that space: we need to look at this in a similar way. I really hope the Minister will respond positively to these amendments.
Lord Moylan (Con)
My Lords, I am grateful to those who have spoken in this short debate. I have great sympathy with what the noble Baroness, Lady Grey-Thompson, said, as she knows. We will support her in her continuing campaign, and that of the noble Baroness, Lady Brinton, and my noble friend Lord Holmes of Richmond, to put the case on behalf of disabled people for proper consideration in relation to public transport services.
I was mildly tickled by the proposal from the noble Baroness, Lady Pinnock. One of my deep concerns, which I have tried to express in as gentle a way as possible throughout this Committee, has been the adequacy and competence of local councillors to take on the role envisaged for them by this Bill. I had not imagined that a vice-chairman of the LGA should give such ringing endorsement to my concerns, to the point where she actually said that training should be mandated by statute for those who will take part in making those decisions. We are at one on this in our concern.
None the less, I am not entirely sure—here I suspect that I will sound a bit like the Minister, and I speak as a former local councillor—that the idea of a statutory training programme in this area would be appropriate. There is a false analogy with training for the exercise of planning and licensing functions, because those are almost invariably what are referred to as quasi-judicial functions that relate to individuals making applications relating to their property, business, premises or whatever. They need to be taken in an appropriate legal framework, rather than a political framework. It is appropriate that councillors are given training in that legal background where they are called on to make those decisions.
The sort of decisions that will be made here are not in that category, so I wonder whether this approach is necessary. In fact, even it were appropriate to have statutory training, I would not have training on the provisions of this Bill, which is what the amendment calls for but, rather, training of the sort that perhaps the noble Lord, Lord Snape, could provide: training in how to run a bus company and make the hard, crunchy decisions that you will be confronted with about how to manage your resources in a way that maximises your revenue while allowing you to provide as many, but not necessarily all, of the socially important services that you would like to provide. Those are the hard, crunchy things that people will need to be trained in, rather than understanding the legal background provided by this Bill.
In a way, I am delighted to find myself holding hands with the noble Baroness, Lady Pinnock, on this topic, but I am not sure that I can support her on the wording of this amendment.
Lord Hendy of Richmond Hill (Lab)
My Lords, I will address Amendments 54 and 55 together. I listened carefully, as I hope that I always do, to the noble Baroness, Lady Grey-Thompson, who talked about her real experience of travelling by bus. Anything less than 100% accessibility is unacceptable, and I completely agree with her.
The Government are determined that power over local bus services is put back in the hands of local leaders across England. That is why the department recently allocated over £700 million of bus grant for local transport authorities in 2025-26 by formula. Funding for bus services is also provided through the local government finance settlement. In fact, specifically, the 2025-26 funding included money for additional officer capability, for either additional officers or help equivalent to additional officers, to help each local transport authority in the choices that this Bill will give them.
The Government have also established the Bus Centre of Excellence, which I am sure we will continue to return to. Work is also under way to provide even more active support to local transport authorities that wish to explore franchising. I take this opportunity to make noble Lords aware of the Government’s plans to pilot different franchising models particularly suited to more rural areas. This funding, along with potential local transport authority bus funding in future financial years, is available to support implementation of the Bill’s measures.
It is, of course, wholly reasonable to expect the people who deliver policies and support services that help disabled people to understand their legal rights, needs and expectations. This afternoon, we will come on to the primary training needs of bus drivers, who are the visible front line of the bus service. The Government are clearly committed to helping authorities deliver the service improvements that we all want to see, whether it is through tailored assistance, the additional funding to which I have referred or the Bus Centre of Excellence.
Baroness Pinnock (LD)
My Lords, I thank all noble Lords who have taken part in this mini-debate. In particular, I thank the noble Baroness, Lady Grey-Thompson, for her important amendment; again, it rightly raises the issue of access for those with disabilities. I always think that if we get access for people with disabilities right, we get access for everybody right. The noble Baroness has placed an important amendment before us to make us think about that.
In my councillor role, at the moment, I am trying to help a resident who is in a wheelchair. There are three wheelchair users on her estate and only one can get on the bus at any one time, so she is unable to get the bus if they are there at the bus stop; she has to wait another hour to get a bus. Somebody said to her, “Well, get a taxi”. As the noble Baroness, Lady Grey-Thompson, will know, the answer is frequently no. There are no accessible taxis in my town, so that resident is stuck. We need those issues to be at the forefront of this debate, which is why the training is so important; otherwise, we will get it wrong. That would be both a terrible mistake and a loss of an opportunity.
I thank the Minister for his reply. I can understand why he stepped carefully around the issues of local government requirements and training for those on local transport authorities. I thank him for saying—sort of—that he will think about this. I hope that he will, because better decisions are made when folk understand the parameters within which they are operating. With that, I beg leave to withdraw my amendment.
Lord Hampton
“Access to the Confidential Incident Reporting and Analysis System (CIRAS)In the Transport Act 2000, after section 144E (inserted by section 21 of this Act) insert— “144F Access to the Confidential Incident Reporting and Analysis System (CIRAS) for drivers of PSVs(1) Local authorities must ensure that service operators provide drivers of a PSV being used under a licence to provide a local bus service with access to the Confidential Incident Reporting and Analysis System (CIRAS).(2) If service operators do not fulfil the requirement under subsection (1) to provide access to CIRAS for drivers, the local authority may revoke the service permit.””Member's explanatory statement
This amendment seeks to ensure that service operators provide drivers with access to CIRAS (Confidential Incident Reporting and Analysis System).
Lord Hampton (CB)
My Lords, in moving Amendment 58, I will also speak to my Amendments 59 and 60. I thank the noble Baronesses, Lady Jones of Moulsecoomb and Lady Pidgeon, for their help along the way. I degrouped these from the original groupings, as they are more about safety than accessibility and inclusivity. I felt that they were important enough that they might get a bit lost in a larger group.
On 29 January, bus drivers marched from Victoria to Parliament to protest about driver conditions and present a petition, signed by over 29,000 people, calling for the acceptance of a bus drivers’ bill of rights, which is about giving bus drivers the basic rights of employment that they feel are being eroded. It was timed to commemorate the death of Kathleen Finnegan, who was killed by a London bus while crossing at Victoria Station. Driver welfare should be the cornerstone of any legislation. I have had meetings with representatives of bus driver groups who feel that there are some working practices going on that they are unhappy about.
My Amendment 58 would mandate that everyone has access to a confidential incident reporting system. CIRAS is one, but there are several bona fide reporting systems available. TfL has had that in place since February 2016; once again, we go back to the fact that TfL does a very good job, so let us roll that out. In my conversations with the Minister, for which I thank him, he felt that this could be brought in and would help a lot with driver safety concerns. If this were a requirement for every bus company, one would hope it meant that any driver safety issues could be thoroughly investigated. That would be great for transparency, passenger confidence, workers and politicians.
I turn to Amendment 59. On the first day in Committee, the Minister said that this Bill is about safety. The noble Lord, Lord Snape, referred to that as well in talking about passenger surveys. However, except for a section about how to deal with crime on buses, there is very little in the Bill about safety.
My amendment would force bus companies to publish their safety data regularly. I talked about this at length at Second Reading, so I will not repeat myself but, in reply, the Minister said that all the data nationwide is already available on STATS19. I am afraid that I will ask the Committee to buckle in and follow me closely on this, because it will get quite granular. The Minister said in his letter that,
“It should also be noted that STATS19 data is a comprehensive and robust public record of personal injury incidents and includes a wide range of data that can be used to support future improvements to safety. A further set of safety data is collected by the Driver and Vehicle Standards Authority, who also collect data on incidents or collisions involving Public Service Vehicle … licence holders. By law, all PSV operators must report fatalities, serious injuries, allegations of a safety defect, serious damage as a result of the incident, a safety critical component failure or history of the same component failing, and a vehicle catching fire”.
I have to say that I did not find STATS19 to be user-friendly, on quite a brief look, and nor did it seem to regionalise data.
In response, the very excellent Tom Kearney, of LondonBusWatch—if there is anyone you need to granularly look at data, it is Tom Kearney—said this. I will quote him exactly:
“Compared to London’s published data, the DfT’s STATS19 Data is seriously deficient and undercounts the number of people killed and injured in Bus Safety Incidents. Even a casual review of STATS19 Data … reveals that is neither published as frequently or in as much useful granular detail as the Bus Safety Data TfL has published on its website every quarter since 2014 … Because STATS19 data combines incidents involving Bus and Coaches and does not include injury incidents involving Buses that have taken place on private roads or land (entrances/exits to and at bus stations) as far as Bus Casualty Data Reporting is concerned, STATS19 is both inaccurate and misleading. STATS19 also does not include injury incidents (Trips & Falls) onboard buses that might not have been caused by a collision, yet produce a lot of casualties (including fatalities) and are an important indicator of Bus Safety Performance”.
He continues by saying that an analysis of TfL’s published data reveals that, for the period from 1 June 2016 to 31 December 2023,
“Collisions from London Buses at Bus Stations have injured 133”
and sent 87 people to hospital.
In addition, between 1 January 2014 and 31 January 2024,
“6 people have been killed from Collisions from London Buses at Bus Stations. None of these fatal or injury incidents involving Buses are recorded in STATS19 Data; Out of the 120 Preventable Bus Safety Deaths that have occurred over the period Q1 2014-Q2 2024 that TfL’s published, 27 … don’t get reported in STATS19 because they occurred at Bus Stations … or resulted from onboard falls … or ‘other’ preventable safety incidents”.
TfL does not provide any details on those. Tom Kearney concludes:
“We have FOI requests that prove that the DVSA collects but does not publish data and the Traffic Commissioner neither collects nor publishes data”.
If the Committee has followed that, this issue is at best muddy.
Could we, as the users, have this data on a dashboard divided by LTA? STATS19 is neither easy to use nor, as far as I can see, divided across the regions. The Minister said that it might well be possible for franchises but was doubtful whether it would work where there was no franchise in place. These days, we are being told that data is gold. Surely companies should be mining this data anyway to analyse their performance—and if not, why not?
When I spoke to Go-Ahead, it was also concerned that much of the accident data is not the fault of buses but might be used as a headline number to dent passenger confidence. I am sure that it is not beyond the wit of mankind to separate fault from no-fault accident data and learn from it. Again, we are talking of transparency and public confidence.
On my Amendment 60, from my conversations with bus drivers, again, they are really concerned about tiredness and things changing with shift patterns. They feel that they need more time. Again, since my conversation with the Minister, I realise that there are very different patterns in being an HGV driver and a bus driver. This is more of an amendment to push for an idea of the reporting. We really need to look at driver welfare and I beg to move.
Baroness Pidgeon (LD)
The amendments from the noble Lord, Lord Hampton, raise some really important points about the safety of bus services and are important for our considerations. Bus safety performance data being shared in a clear, simple and transparent way is important if we are talking about driving up performance. The complexities that we have heard clearly outlined show why this is so.
I am particularly interested in Amendment 58. It is a good suggestion that all bus drivers should have access to the confidential incident reporting and analysis system known as CIRAS. Over my years of working on the London Assembly, we heard evidence time and again from drivers suffering from fatigue and stress and, in some places, of there being a culture which really did not support reporting of concerns and practices. Many drivers feared for their jobs and we heard similar things about the tram network as well.
CIRAS describes its role on its website:
“We listen to the health and safety concerns of people in transport. We protect their identity when we share their concerns with the right people to act. When we listen, we learn. We help our members share good practice and promote an even stronger culture of listening. And our members learn from valuable safety information they might have otherwise missed”.
This is important as we seek to improve bus services across the country. I really look forward to hearing the Minister’s thoughts on this group of amendments, particularly the point around CIRAS.
Lord Moylan (Con)
My Lords, with his amendments, the noble Lord, Lord Hampton, has opened up one of the most important and least discussed areas to do with bus operations in a way that presents many of us who have experience of responsibility, one way or another, for bus services—in my case, a non-executive responsibility for a number of years—with real challenges and difficulty. The question we must ask ourselves is whether bus operators have the right mentality about safety. I say that in the light of what has been achieved in the construction industry, for example, over the past 20 years, where a focus on zero accidents and injuries has transformed the way of working. Of course, zero is never quite achieved, but very close to zero is now achieved on construction sites. A deliberate programme and a deliberate change in mentality has brought that about. On the railways, there is a strong focus on that mentality, and I wonder whether it exists on the buses: are we, in fact, way out of date in our attitudes towards safety?
I want to mention that I have just become an officer of the newly reconstituted APPG on Women in Transport. The relevance is that many of these issues to do with safety are women’s issues. There is the obvious question of violence against women and girls on buses; the APPG will look at that, but there is the broader issue of safety in general. I do not have up-to-date statistics, but it used to be the case, admittedly some years ago, that a very large percentage of women over the age of 65 presenting at A&E were there because they had suffered an injury inside a bus—not from a bus collision but inside a bus, very often because of aggressive or inappropriate braking on modern buses, which have very sharp brakes. The safety regulators, of course, think, “Yes, we must have the sharpest and most modern brakes, just as for a motor car”, but in a motor car you are sitting down and strapped in, whereas on a bus you are frequently standing up, because buses are designed to carry standing passengers. Sharp braking results in people falling over. Very often, proportionally, it is elderly women who are falling over and being injured. Do we take proper account of that? Are we recording it? Are we thinking actively about what we should do about it? The situation has not improved in the 20 years or so that I have been making this point about elderly women inside buses.
Then there is the question, which is very pertinent to the Bill, of the way in which franchise contracts operate. My experience is somewhat out of date, but it is a London-based experience where franchising is used, and to some extent the London model is the basis for the Bill and is being rolled out elsewhere. The emphasis in the contracts is on keeping to the timetable, and that is very difficult in urban areas because of congestion and unpredictable events, including roadworks and so forth. Very often, drivers are under pressure—they have a clock and are in direct communication with their control—to make up time because gaps in the service have arisen, and they can do that only by going faster and braking more sharply. Quite apart from the potential effects on passengers inside the bus, which I have already mentioned, the risk of knocking into something, often with very serious effect if that something happens to be a human body walking in the street, is increased.
We are all here saying how wonderful it is—not all of us are saying it with the same level of enthusiasm, admittedly, but there are people in the Room saying how wonderful it is—that we are extending a franchise model, but the structure of the contract on which those franchises will be based needs to be looked at carefully in the light of safety considerations. We should all be very grateful to the noble Lord, Lord Hampton, for bringing up this issue.
In relation to Amendment 60, I am not persuaded that we should have a new and separate statutory provision about working time in the Bill, when we already have quite extensive and elaborate working time legislation elsewhere. There is a lot to be said in favour of Amendments 58 and 59. I have a suspicion that they will reappear on Report; if they do, they will deserve very serious consideration indeed.
Lord Hendy of Richmond Hill (Lab)
I thank the noble Lord, Lord Hampton, and the noble Baronesses, Lady Jones of Moulsecoomb and Lady Pidgeon, for Amendment 58. It seeks to require local authorities to ensure that bus operators provide their drivers with access to the Confidential Incident Reporting and Analysis System, which I will refer to as CIRAS.
The Government are always concerned, as they should be, about any safety incidents in the bus sector, or indeed any other public transport sector. That is why a number of official routes exist to allow anyone to provide confidential, anonymous reporting on safety and standards in the sector, backed up by enforcement. Anyone may anonymously report a lack of safety or conformation to standards in the bus sector to the DVSA intelligence unit, which may use this information to investigate the situation, including by working with other government departments and agencies, as well as police forces.
Comprehensive standards bridge all aspects of bus operation, across the roadworthiness of vehicles, operation of services and driver standards. As I said, they are enforced by a number of organisations, principally the DVSA. The operators of the vehicles are licensed by the traffic commissioners, who consider non-compliance issues seriously and ensure that operators are effectively regulated. The judicial process of the traffic commissioners can and does result in depriving people of operators’ licences and depriving managers of their certificate to run bus operations.
CIRAS provides another route for employees to report concerns. Both Transport for London and Transport for Greater Manchester are members of CIRAS. Being able to report such concerns in a confidential manner is clearly important, and I would encourage employees of member organisations to consider using this service where appropriate. But CIRAS is a third-party service, and it would not be appropriate to include it within the scope of the Bill.
However, I did a bit of personal research on this, and I will say that if we are asking people to report bus safety issues to the DVSA intelligence unit, it would make a lot of sense for access to it to be freely available. When I looked at it, it was quite difficult to find, which is really unhelpful, so I commit that we will see what needs to be done to make sure that the route to report directly to the government agency responsible for safety on buses is as efficient and easy as possible.
I thank the noble Lord, Lord Hampton, and the noble Baroness, Lady Jones of Moulsecoomb, for bringing forward Amendment 59. Road safety is a priority for the Government, of course, and we expect bus operators, as I hope I have just said, to adhere to the highest standards of safety. Buses are one of the safest modes of road transport in Great Britain, and my department remains committed to improving safety with appropriate vehicle construction standards and ensuring the safe operation of vehicles. As we have heard, franchising authorities report safety in detail, and I expect that a consequence of this Bill, as it enables other franchising authorities to be established, will be to enable them to report safety in a similar way to how London and Manchester already do. In effect, the franchising authority is taking responsibility for procuring and delivering a bus service.
In respect of operations that are not part of franchise bus services, we have heard this afternoon that this is carried out through the STATS19 framework, which relies on reports from the police. These reports are based on locations identified by geographical co-ordinates. This is a role that cannot be delegated to local transport authorities and ought to stay with the Driver & Vehicle Standards Agency because it relates to PSV operator licensing requirements. However, I note the remarks of the noble Lord, Lord Hampton, in respect of accidents away from public roads, which I will go away and have a close look at. I am not familiar with that nuance, but it is clearly important. Trying to divide any sorts of accidents into fault and no fault is fraught with difficulty. In fact, it must be subjective, and therefore I am not sure that we would want to go down that road. I understand his point about recording accidents on public service vehicles wherever they occur, and I will go away and see what can be done about that.
Amendment 60 from the noble Lord, Lord Hampton, seeks to change long-established rules about daily driving time on regular bus services. There are two sorts of driving time rules: one for services that do not go beyond 50 kilometres and one for services that do. These daily limits are well and long established, and I think the gist of my conversation with the noble Lord was that he was looking for an ability for people to report scheduling requirements on bus drivers that make drivers feel that they are not safe. That is a matter that could well be drawn to the attention of the DVSA because it goes to the heart of the repute of the operator. I understand that there may well be drivers who feel that what they are being asked to do is potentially or actually unsafe. That goes back to the process that I have referred to and the ability to report it to either CIRAS, if the people responsible for the operation are members of it, or the DVSA if they are not. I note what he said about this amendment seeking to draw to our attention this important matter.
The noble Lords, Lord Hampton and Lord Moylan, talked about the timetable. No bus timetable in Britain should have any requirement for people to drive unsafely or exceed the speed limit. As a seasoned operator with some background in this, I say to them that very often, certainly in urban areas, what you are in fact looking for is not the timetable to be operated but the reliability of the bus service to be as good as it can be. My experience is that drivers should not feel under pressure to return to the timetable. In many cases, any substantial delay makes that impossible. The training given to bus drivers is about driving safely, having absolute regard to the safety of passengers and, in practice, maintaining the regularity of the service rather than the timetable.
If there are cases where drivers feel that they are being asked to drive unsafely, either by schedule or in practice, it is the reporting mechanism that we need to address because there are people trained in this stuff who can address those issues.
Lord Moylan (Con)
With the Minister’s permission, I do not think that we are disagreeing and, therefore, I do not think that what he just said about timetables is quite the answer to my point. It may be my fault for expressing it in the way I did. I am sure that I talked about adhering to the timetable—I will look back at it—but he has cast it differently. He said that reliability—that is, the frequency between buses arriving—is what operators seek to maintain, but that is precisely what can lead to the sort of pressure on drivers where a controller says, “Hurry up because the gap between you and the bus ahead has got too large”. That is really what I was talking about and what I meant to express, although I used the language of timetabling.
The key question that the Minister will need to address is to what extent does the contract reward that behaviour? To what extent is reliability rewarded in the contract? In many cases, companies and people behave according to financial incentives. If your narrow margins as a bus operator or a franchise depend on maintaining certain levels of reliability and certain gaps between buses along the service, that is what you will be pushing your staff to do. It comes back to this question of what the contract says and what it rewards.
Lord Hendy of Richmond Hill (Lab)
I thank the noble Lord for his intervention. Before I got to the railway, I spent most of my adult life trying to encourage people who control bus services not to rely on the timetable but to adhere to a regular frequency. Of course, the truth is that in most urban areas, once you have lost time, the chances of ever regaining it are, frankly, pretty small, and they are even smaller with the increasing use of speed limits of 20 miles per hour. I take the noble Lord’s point but, in the end, this is about people either being required to drive unsafely or believing that they are required to do so. It is certainly possible, and I have seen it done to encourage people to attempt to make time up but, in my experience over the 50 years I have been driving buses—now and again, more recently—it is very difficult to do so.
Let us go back to the safety aspect of this. Where the noble Lord, Lord Hampton, is going rightly concerns finding a way for bus drivers to express that they are being either expected to drive unsafely or encouraged to do it. I take his point about that very clearly. As I said before, there are all these requirements on franchised authorities, which will report on safety because they are procuring the service. CIRAS is available, where people have chosen to join that third-party organisation, but, where they have not done so, it is about making the route to complaining clearer and more available. I very much hope that that answers the noble Lord’s points. I will leave it there.
Lord Hampton (CB)
My Lords, I thank all noble Lords who took part in this debate. I genuinely thought that this was this place at its best, and I realise that I have trespassed on a landscape of real expertise, but I think we got some cross-party consensus that we really need to push safety to the front of the Bill if it is not there already. I think the implication was there, but it is not in the Bill. The noble Lord, Lord Moylan, talked about zero injuries in the construction industry which was very interesting, and we need to take that on board. Once again, we have got back to this: we need a really good reporting mechanism that people can use, and we need to publish what data is coming out as much as possible. I trust the Minister when he says that he will go away and think about this a lot. In that case, I beg leave to withdraw the amendment.
The Earl of Effingham
“Financial inclusion in public transport policies(1) Local transport authorities (LTAs) must ensure that all guidance, regulations, and policies implemented under this Act take into account the principle of financial inclusion.(2) In particular, LTAs must have due regard to—(a) the affordability of bus services for passengers on low incomes,(b) the availability of payment methods, including cash, that are accessible to all passengers, including those who do not have access to digital or contactless payment methods, and(c) measures to prevent financial barriers from excluding any groups of passengers from accessing essential bus services.(3) LTAs must publish a report every four years on steps taken to promote financial inclusion in bus services, including measures adopted to ensure access to cash payment options and affordable services.”Member’s explanatory statement
This amendment places a duty on Local Transport Authorities to prioritise financial inclusion in their public transport policies. It requires LTAs to ensure affordability and accessibility, including access to cash payment options, and mandates periodic reporting on progress.
The Earl of Effingham (Con)
My Lords, I rise to speak to Amendment 64 in my name. This amendment places a responsibility on local transport authorities to ensure that bus services remain accessible, not just through affordability but through the diversity of payment methods available. The reality is that different passengers have different preferences on how they want to pay. If we take rural areas, for example, we know that public transport services are often limited in these regions, and buses may be the only form of transport available. For many elderly residents in rural areas, cash is their preferred method of payment. If we remove cash payment options from bus services, we could unintentionally exclude a significant portion of the population, especially in rural and isolated areas where public transport is already sparse. This would not just inconvenience elderly passengers but severely restrict their ability to access essential services such as medical appointments, local shops and social support in the community. For these passengers, financial inclusion is about the ability to pay for their travel in a way that works for them. This amendment is not about one-size-fits-all solutions; it is about recognising that different passengers need different options. The elderly, the digitally excluded and those on lower incomes should be catered for in our transport policies. By ensuring that cash payments remain an option and that services remain affordable for all, we are creating a system that truly works for everyone, not just those who have the latest technology. I beg to move.
Lord Moylan (Con)
My Lords, I rise to speak to my Amendments 71 and 72 in this group, with a slightly different angle on this interesting topic of payment, which has been raised by my noble friend Lord Effingham. Normally, I like to give the Government a good roasting, criticise them and explain why it is that I am so much further ahead in my ideas than they are. On this occasion, since I have tabled these amendments and made further inquiries, I am glad to say that this will be an easy ride for the Government because they are doing quite a lot on this already and things are going generally in the right direction.
My first amendment relates to the payment by concessionary fare holders, and the second relates to contactless payment. The two may seem to be roughly the same, but they are very distinct. Contactless payment using a bank card, debit card or credit card cannot be used by those who have concessionary rights to travel on the buses because, obviously, if you are going to use a card, that right has to be evidenced by some identifier.
Let me give an example: those who have a national bus pass will have a photo card of a distinctive style, with an English rose on it; I remember that that was an important feature when it was designed. It is a card of a distinctive style with your face on it, and you need it in order to demonstrate your right both to the bus driver, who probably takes no notice of what is on the card, and, certainly, to a revenue protection officer were they to board the bus and check. This cannot be done with a bank card. One therefore needs two types of technology involved, which I want to deal with separately.
In London, the system that was developed for concessionary fare holders was originally the system used for all contactless payment. This was the Oyster card technology, which is still used for concessionary card holders. That includes not just the elderly—the national bus pass people—but also those with freedom passes and young people who have free travel as well. That technology is used.
However, when the national bus pass was introduced—by Gordon Brown’s Government, as I recall—that technology was not used and the DfT preferred its own technology, which goes under the name of ITSO. TfL regarded it as rather clunky, but the fact is that TfL then had to fit all of its bus card readers with equipment that could read two separate technologies in order to read what is going on. This was a very foolish way of going about things. The purpose of Amendment 71 is to suggest that, as this matter develops, there should be a single system that is applicable to concessionary card holders.
Amendment 72 relates to contactless payment. Contactless payment is widely used in London and was promoted by TfL in collaboration with the banks. In fact, it is quite likely that the banks would never have taken the risk of introducing contactless payment into the country if it had not been for TfL turning up and saying, “We have 4 million transactions a day; if we were to get together, maybe we could make contactless work. It will de-risk it for the banks, to some extent, and will give us something even cheaper than the Oyster card system”. I mentioned it being cheaper.
We should bear in mind that the driver of this, from the bus operators’ perspective, is the cost of collection. The point I would make—I would never disagree with what my noble friend Lord Effingham says—is that inclusion is very important, but one has to remember that cash is expensive to collect. It is much less for electronic payments. Of course, you have to pay the banks, but TfL was quite lucky because it had a proposition for the banks, which meant, I think, that it could negotiate a very good deal with them in terms of what it paid per transaction. Certainly, it is much less than the cost of cash collection, or even of Oyster card operation. If you are an ordinary passenger on TfL services nowadays—not a concessionary fare holder—you must notice that all the advertising encourages you to use contactless and not to get an Oyster card at all. That is the direction in which everything is going.
Outside London, however, contactless payment is still rare. The reasons for this are partly that the different bus companies all have different back offices, and the system needs to work in such a way that it will work with all the different back offices. I am perhaps pre-empting what the Minister will say, but I am delighted to be able to say that I have had some very interesting and valuable conversations with Midlands Connect, which is the non-statutory transport body for the West Midlands and the east Midlands. On behalf of the Government, it is carrying out work to develop a system that would work with all the different back offices of the various different bus companies so that it is possible that, over time, we could have contactless payment on buses throughout the rest of the country. That would be very welcome. It would be useful if the Minister could say in his reply what the timetable for that is; how much resource the Government are putting into it; what level of priority they regard it as having; and how they will now work with the multiple LTAs up and down the country, which will be running the buses, to make sure that this is adopted in a coherent way.
Lord Burns (CB)
My Lords, can I use this opportunity to point out that one of the great benefits of the contactless system is the ability to have integrated fares across a region? One of the things that I discovered in North Wales was the frustration of many people—again, particularly in rural areas—when they were taking several journeys to get to their destination. The ability to have this all taken care of within one transaction is of enormous benefit. Of course, as we know from London, it gives also you the opportunity to have daily caps on the prices of tickets and a great deal of improvement in the experience of people who are making complicated journeys, often across different modes but certainly across different bus journeys.
I see this as an important part of the future. If we are to have an integrated public transport system, we need an integrated fare structure as well. The contactless system is an important step on the way to achieving that important part of the pricing mechanism for the future. Despite the issue that we heard about earlier in terms of the £2 fare cap, my own view is that having an integrated system of the kind we enjoy in London is one of the most important things for the future usage of buses.
Lord Hendy of Richmond Hill (Lab)
I thank the noble Earl, Lord Effingham, and the noble Lord, Lord Moylan, for their amendments; I also thank the noble Lord, Lord Burns, for his remarks just now. The Government know how important affordable and reliable bus services are in enabling people to access education, work and vital services. We also know that buses are particularly important for people in the lowest-income households, who make nearly twice as many bus trips as the average, and for younger people, who are much more likely to use buses than other age groups.
The Government also understand the importance of making payment methods on buses accessible and available to all. This is why we have provided guidance to local transport authorities and bus operators on developing their bus service improvement plans, which encourages both parties to work in partnership on improving the provision of fares and ticketing to ensure that the needs of all local bus users are taken into account. To this end, local transport authorities are also encouraged to capture local information about cash usage and electronic payments to inform the development of their bus service improvement plans. The bus franchising powers in the Bill will also give local authorities greater control over fares and ticketing while, through their enhanced partnership arrangements, they can work closely with bus operators to ensure that fares and ticketing policies are inclusive for passengers.
I should just add that, from my own experience as the person who was at the time responsible for the removal of cash payments from buses in London, contrary to the belief of the then mayor that it was the poorest people in London who habitually paid cash, it was completely the reverse: the poorest people in London had already worked out the value of Oyster cards and of daily, weekly and monthly ticketing. In fact, it was the ABC1 males who insisted on trying to pay the enhanced cash fare. When we withdrew it, they immediately moved to Oyster cards themselves. We have already discussed better ticketing once this afternoon, of course.
Amendment 71 looks to have integrated ticketing across the bus network; I note that the noble Lord, Lord Moylan, largely took Amendments 71 and 72 together. His sentiments are right: it is good for passengers, as well as for the bus network, its operators and franchising authorities, to have the most modern methods of payment with the lowest possible transaction costs. I completely agree with him.
What we do not want is to try to force people to do things that they cannot currently do while the work in progress that the noble Earl described is going on, to make payment methods as easy as possible. He asked me for a timetable, which I am not sure I can give him, but the multiplicity of back offices across the bus and railway networks in Britain needs to be untangled, and substantial work is going on within the department to enable multimodal ticketing, particularly in Manchester and the West Midlands, outside London. The consequence of that will be—I hope in time, and as quickly as possible—to allow the back office, in the way that he wants and as the noble Lord, Lord Burns, described, to provide seamless ticketing across bus networks. That work continues, and will take some time. He is, of course, right that in London the volume of transactions was so great that the credit card companies were willing to come to the table very easily. Outside London, it is a bit different, but the department is working very hard to do it.
Since the noble Lord, Lord Moylan, rightly says that the Government are moving quite well in that direction—and he also observes, as I can confirm from observation just now, that the English national concessionary pass has the English rose on it, because mine has it on—I submit, on his own assurance that the Government are moving quite fast, that neither amendment is necessary.
The Earl of Effingham (Con)
I thank my noble friend Lord Moylan, the noble Lord, Lord Burns, and the Minister, who have all contributed to this short debate. It really is critical that we ensure financial inclusion for everyone. Based on what the Minister has just said, we will look at this issue further, but for now I beg leave to withdraw my amendment.
The Earl of Effingham
“SEND pupils and home-to-school buses(1) In discharging their duties under this Act, local transport authorities must have due regard to the needs of pupils with special educational needs and disabilities (SEND) when planning, commissioning, or providing services for home-to-school buses.(2) In particular, local transport authorities must take into account the following when providing home-to-school bus services for SEND pupils—(a) the specific travel requirements of SEND pupils, including but not limited to the provision of accessible vehicles, safe travel arrangements, and appropriate support during transit;(b) the need for flexibility in travel arrangements to accommodate the varied needs of SEND pupils, including those with physical, sensory, or cognitive disabilities;(c) the availability of transport options that support the inclusion of SEND pupils in mainstream education, ensuring they can access education on an equal basis with other pupils;(d) the potential for tailored travel arrangements, such as assistance with transfers, escort services, or adaptations to vehicles, to ensure the safety and comfort of SEND pupils during their journey to and from school.(3) Local transport authorities must also ensure that—(a) there is clear communication with parents, carers, and guardians of SEND pupils regarding bus transport arrangements and options available to meet their child’s specific needs;(b) where applicable, there is collaborative working between the local transport authority and educational institutions to ensure that home-to-school bus travel arrangements align with the pupil’s education plan or needs assessment.(4) The Secretary of State must, by guidance, specify further details on the best practices and requirements for local transport authorities to meet the needs of SEND pupils in the provision of home-to-school bus travel, with regard to accessibility, safety and effectiveness.(5) The Secretary of State must, every three years, publish a report on the adequacy of home-to-school bus travel provisions for SEND pupils, including any identified gaps in provision and the steps being taken to address them.” Member's explanatory statement
This amendment ensures that Local Transport Authorities (LTAs) must consider the needs of SEND pupils when arranging or overseeing home-to-school bus travel services.
The Earl of Effingham (Con)
I shall speak to all the amendments in this group standing in my name.
We must support our most vulnerable people, and we believe that His Majesty’s Government should prioritise SEND pupils when considering school bus services. Amendment 65 would place a vital obligation on local transport authorities to have due regard to the needs of pupils with special educational needs and disabilities when planning, commissioning or providing home-to-school bus services. We often speak in your Lordships’ House of our duty to ensure that every child has access to education, yet for many SEND pupils the journey to school is fraught with obstacles. Transport is not merely a logistical issue; it is a fundamental enabler of equality. Without suitable and reliable transport, education itself becomes inaccessible.
This amendment acknowledges a simple but often overlooked reality: that children with SEND require transport that is adapted to their needs, ensuring safety, accessibility and dignity. It is not enough to assume that standard transport provisions will be sufficient. Many of these pupils require accessible vehicles, safe and structured travel arrangements and, in some cases, specialist support during transit. Without these measures, their journey to school can be distressing, unsafe, or even impossible. Flexibility is key. The needs of SEND pupils vary widely. Some require physical adaptations, while others need assistance due to sensory sensitivities or cognitive challenges. A rigid, one-size-fits-all approach will not work. Local transport authorities must recognise the diversity of needs and build flexibility into their transport planning, ensuring that no child is left behind.
This amendment also speaks to the broader issue of inclusion. If we are to uphold the principle that SEND pupils have a right to mainstream education on an equal basis with their peers, we must ensure that they can physically access their schools. The provision of suitable transport is not an additional benefit—it is a necessity. This is not about adding burdens to local authorities; it is about embedding fairness and inclusion in our transport system. It is about ensuring that SEND pupils are a priority in our transport planning.
With Amendment 66, we must ensure that pupils attending schools outside their local transport authority’s boundary are not disadvantaged. This amendment requires LTAs to work collaboratively with neighbouring authorities to co-ordinate travel arrangements that are reasonable and accessible. Given the potential impact of franchising in certain areas, there is concern that changes to bus routes may inadvertently disrupt essential school transport services. This amendment ensures that LTAs take this issue into account when making transport decisions.
It is crucial that the Secretary of State provides guidance on co-ordinating cross-authority travel and evaluates its effectiveness at regular intervals. This will help to address any barriers preventing pupils, particularly those with SEND, accessing their education due to inadequate transport links.
Amendment 67 also comes in the context of a wider concern, which is His Majesty’s Government’s VAT on private school fees. The implementation of VAT on private school fees has caused financial strain on many families, but particularly those with SEND children. The Telegraph has reported that inconsistencies between Treasury and HMRC guidelines have resulted in some private schools having to add VAT to fees for essentials such as school lunches. Furthermore, the decision to push through the VAT levy during the academic year, without providing schools adequate time to adjust, has placed additional burdens on families. Not all SEND pupils have education, health and care plans. This means that many parents have been forced to pay transport fees out of pocket to ensure that their children’s needs are met.
We are simply asking for a review by the Secretary of State and consideration of an exemption on bus services for SEND pupils. As I said earlier, this is not about adding burdens to local authorities; it is about ensuring that SEND pupils and those who travel across authority boundaries are a priority. The Government have said they want to ensure that all children have the best chance in life to succeed—and that is, of course, absolutely correct. Fairness should extend to all pupils, particularly those with SEND, regardless of where they receive their education.
On Amendment 68, please let me highlight the critical issue raised in this amendment, which seeks to review the impact of national insurance contribution increases on transport services for those children with special educational needs and disabilities. The proposed increase in employer national insurance contributions will create a serious financial strain on private bus operators that provide SEND transport services. Many of those providers already work within narrow financial margins, and the increase in employment costs will likely make it financially unsustainable for some of them to continue offering their essential services.
The Confederation of Passenger Transport has estimated that this will cost the bus industry a total of £100 million. For a bus driver earning £30,000 per annum, the additional cost will be approximately £800 per year. This is a significant burden for small and medium-sized private operators, many of which already struggle to remain profitable in an industry with tight margins. If these private providers can no longer afford to maintain SEND bus services, local councils will be forced to step in, which means they will need to retender thousands of contracts—an administrative process that could take months. Delays in retendering would cause disruption to transport services, leaving vulnerable children without the critical support that they need to attend school. Such delays could also affect the quality of services, as new providers may not be able to offer the same level of expertise or flexibility that the private operators previously provided.
Baroness Pidgeon (LD)
The noble Earl, Lord Effingham, has raised some serious concerns and this group of amendments picks up a point raised at Second Reading by my noble friend Lady Harris of Richmond. She described the ongoing situation with school bus services and pupils with special educational needs in North Yorkshire, and the terrible impact it is having on families and children. It is vital that bus services support children attending school and college, whether within their local authority area or further away, which is often the case with specialist education provision. This is an area of much concern. I hope the Minister is able to provide some assurance in response to this group of amendments.
Lord Moylan (Con)
My Lords, I heartily endorse the comments made by my noble friend Lord Effingham and the support given by the noble Baroness, Lady Pidgeon. To be crystal clear, the fundamental issue is not the increase in national insurance rates as such, but the reduction in the threshold at which national insurance becomes payable.
Many of the people who drive special educational needs buses are part-time semi-volunteers. They may be working a few hours in the morning and a few hours in the afternoon, and their overall salary, as things currently stand, brings them in below the level at which national insurance contributions are payable. That is approximately £10,000 a year; I am using a very rough figure there, as I do not have the actual figures at hand. The Government’s proposal is a reduction to £5,000 a year of the point at which national insurance contributions become payable—again, an approximate figure. It is that reduction which brings these people within scope of national insurance contributions, which is potentially fatal to the operation of many of these services. They will simply not continue. The best that can be hoped for would be a more expensive service, after a lengthy period of retendering and disruption, in which maybe the same or maybe different operators are providing a more expensive service to the local education authority in many cases.
Separately, there is also the question of private schools and putting VAT on the bus services they provide, which would be bizarre because no other form of transport is subject to VAT, as far as I am aware. It is one of the consequences of the Government’s vindictive action against private schools. But the SEND issue is not simply about private schools; it is about the whole range of schools, and it is crucial that it is resolved soon.
Lord Hendy of Richmond Hill (Lab)
Before I address the amendments in this group in turn, I wish to say that I am grateful to the noble Lord, Lord Moylan, the noble Earl, Lord Effingham, and the noble Baronesses, Lady Pidgeon and Lady Harris of Richmond—who raised her concerns at Second Reading—for raising the importance of home-to-school travel for children with special educational needs. Although this is not directly within my department, my officials continue to work with the Department for Education to understand the issues and how they are best addressed. No child should struggle to get to school because of a lack of suitable transport.
Your Lordships may already be aware that the Government are clear that the system for educating children with special educational needs and disability—SEND—requires reform. The Department for Education will work with families, schools, local authorities and other partners to deliver improvements so that children and young people can access the support that they deserve. It acknowledges that challenges in the SEND system extend to the arrangements for home-to-school travel and has committed to ensuring that more children can receive the support they need in a local mainstream school. This will mean fewer children needing to rely on long and complex journeys to access education.
Turning to Amendment 65, home-to-school transport is the responsibility of local authorities with education functions, not local transport authorities. For example, Transport for Greater Manchester is the local transport authority for the Greater Manchester region but responsibility for home-to-school travel rests with the 10 local councils within the region. The Education Act 1996 places a statutory duty on local authorities to arrange free home-to-school travel for eligible children. A child is eligible if they are of compulsory school age, attend their nearest suitable school and would not be able to walk there because of the distance, their special educational needs, a disability, a mobility problem, or because the route is not safe.
It is for local authorities to decide what travel arrangements they make for eligible children. For example, they might provide them with a pass for free travel on public transport or arrange a dedicated bus, minibus or taxi. However, to meet their duty, the travel that they arrange must be suitable for the needs of the child concerned. The Department for Education provides comprehensive statutory guidance to help local authorities meet this duty.
The Government already expect local transport authorities to take account of the needs of all people travelling, including children travelling to school. Effective collaboration between local transport authorities and local authorities delivering home-to-school transport may bring benefits, but it would not be appropriate to place a duty relating to home-to-school transport on local transport authorities when statutory responsibility for that service rests elsewhere. For these reasons, Amendment 65 is unnecessary.
Amendment 66 relates to children travelling outside their local authority boundary to access a suitable school place. The statutory duty that requires local authorities with education functions to arrange free travel for all eligible children applies regardless of whether a child’s school is outside the council’s boundary. Where a child with special educational needs has an education, health and care plan, the school named in that plan will almost always be considered to be their nearest suitable school for the purposes of assessing their eligibility for free travel. It is already commonplace for local authorities to arrange free travel. For this reason, this amendment is unnecessary.
Amendment 67 concerns the application of VAT to transport for pupils with special educational needs who attend private schools. These services may already be exempt from VAT; for example, passenger transport in a vehicle with 10 or more seats does not pay any VAT, and operating a vehicle that has been constructed or modified to cater for the special needs of people with disabilities may also not pay any VAT. The Government’s ambition is a state-funded school place for every child who wants one, whether they have special educational needs or not. The Department for Education’s reforms, which I have already mentioned, will deliver an inclusive mainstream system that meets the needs of as many children and young people as possible in their local community.
I also draw the noble Lord’s attention to the consultation on the national insurance contributions Bill, which says at paragraph 2.13:
“The policy intention is to only capture education services and vocational training supplied by a private school, or a ‘closely connected person’, and closely related boarding services. The government recognises that other goods and services ‘closely related’ to education, such as school meals, transport, and books and stationery, are integral to children accessing education. As a result, other ‘closely related’ goods and services other than boarding (i.e. goods and services that are provided by a private school for the direct use of their pupils and that are necessary for delivering the education to their pupils) will remain exempt from VAT”.
I therefore consider this amendment unnecessary.
Finally, Amendment 68 concerns the impact that the increase in employer national insurance contributions will have on bus services for children with special educational needs. The Government recognise that the increase to employer national insurance contribution will have a varying impact across sectors but had to make difficult decisions to help restore economic stability.
As I have remarked already, local authorities are responsible for arranging home-to-school travel and deliver this through a range of providers. Department for Education officials engage regularly with local authorities to understand the challenges that they face and will continue to monitor this situation. It is expected that private sector organisations that contract with local authorities will take the impact of national insurance changes into account, along with other changes to their cost base, in the usual way through contract negotiations.
My noble friend Lord Livermore, at Second Reading of the NIC Bill on 6 January, said in response to a question about NICs and special educational needs transport:
“The right reverend Prelate also asked about SEN transport. In the Budget, the Government announced £2 billion of new grant funding for local government in 2025-26. This includes £515 million to support councils with the increase in employer national insurance contributions, which covers special educational needs home-to-school transport schemes”.—[Official Report, 6/1/25; col. 601.]
Lord Moylan (Con)
My Lords, does the noble Lord accept that that is true for special educational transport needs provided directly by local education authorities using their own employees but not for contracted services, which are very widely used?
Lord Hendy of Richmond Hill (Lab)
I thank the noble Lord for his intervention. I was referring to support to local authorities for home-to-school transport schemes. I will take that away and come back to him with the clarification that he seeks in this respect. I can say that the Government do not expect the changes to national insurance to have a significant impact on home-to-school travel for children with special educational needs, so it would not be proportionate to conduct the assessment as the amendment suggests. I do not think that it is required.
The Earl of Effingham (Con)
My Lords, I thank the noble Baroness, Lady Pidgeon, my noble friend Lord Moylan, and the Minister for their contributions in this debate. We have heard so much in the Chamber about how SEND pupils may be adversely affected by various new government policies, so we feel that a review, or an impact assessment as per these assessments, is a fair and reasonable request. For now, I beg leave to withdraw the amendment in my name.
Lord Moylan
“Transfer of functions of Traffic Commissioners to the Department for Transport(1) The functions of the Traffic Commissioners established under the Public Passenger Vehicles Act 1981, in so far as they relate to buses, are transferred to the Secretary of State for Transport.(2) The Secretary of State may establish a dedicated division within the Department for Transport to carry out functions previously exercised by the Traffic Commissioners and transferred by subsection (1). (3) All references to the Traffic Commissioners in any relevant legislation, regulations, or guidance, in so far as they relate to buses, are to be construed as references to the Secretary of State or the dedicated division established under subsection (2).(4) The Secretary of State must, within 12 months of the commencement of this provision, publish a report outlining the structure, roles, and responsibilities of any division established under subsection (2).”Member’s explanatory statement
This amendment abolishes the role of Traffic Commissioners in so far as they relate to buses and transfers their functions to the Department for Transport. The Secretary of State will be responsible for implementing these functions through a dedicated division, ensuring streamlined and consistent governance.
Lord Moylan (Con)
My Lords, I suppose you could say that this is a modestly frivolous proposal because I do not suppose for a moment that the Minister will agree to it, but I thought it would give us an opportunity to take a little excursion into the history and byways of English bus history and to consider how it is that institutions, once established, can take root in a fashion that means they are almost impossible to abolish. Indeed, they can even engender a degree of affection that means they become almost inbred in the national consciousness, not that there are many people outside the transport industry who are conscious of the traffic commissioners. It is worth bearing in mind that they arose in the bad old days of corporate capitalism and monopoly capitalism, which prevailed particularly in the 1920s when what Americans called trusts were thought of as the rational way of delivering goods and services in the private sector. We adopted that idea, creating monopolies wherever we possibly could in the private sector, unregulated monopolies in many cases, and encouraging them.
So it came to be that the thought that capitalism unbridled would produce reckless and wasteful competition arose in the bus industry nationally—or among those observing the bus industry—that it needed to be properly organised on a rational basis and that the way to do this would be to appoint an authority that would be able to decide who could run a bus, where they could run the bus and what fares they could charge. As this was a gentle form of English socialism, it was not a national authority but rather 12—I think it was 12— regional authorities in the shape of a traffic commissioner, whose job it was to do all this work and decide who could run a bus and where.
Lord Goddard of Stockport (LD)
I have seen the amendment. The noble Lord, Lord Moylan, is not addressing it; he is giving us a history lesson. We had this in the football debate where we had 25 minutes of someone describing the difference between a badge and a crest. It was an excellent presentation on the fleur-de-lis and the history of football crests, but it served no purpose whatever towards the football Bill and, at the end, the amendment was withdrawn. I think that sometimes Members need to be mindful of the time and effort that other Members put into sitting in these Committees and should perhaps use a bit less frivolous description just to prolong the meeting. It is absolutely contrary to the spirit of how these Committees are supposed to work. To probe the Government is fair, but to go into a history lesson on the role of traffic commissioners is unacceptable.
Lord Moylan (Con)
Well, that is a very serious rebuke on the part of the noble Lord, Lord Goddard. I nearly wilted and decided to curtail my speech as a result of that intervention, but I have found the strength to continue. I remind the noble Lord that there is no question of time being spun out here. We are in day three of a four-day Committee, and we are very likely to finish the Committee today. We are going at rapid speed, and any suggestion that any member of this Committee has been using the time to spin out the debate is preposterous and is denied by the facts, so I will return to what I was saying.
This was the purpose of the traffic commissioners; they were set up for that purpose. So we come to 1985. I do not know whether the noble Lord, Lord Goddard, considers 1985 an historical date or one that is part of the modern and contemporary world; for me, it is fairly contemporary, but I would not want to comment on the noble Lord’s age or experience of these matters. Of course, in 1985, all those functions in relation to buses were taken away from the traffic commissioners. By then—this is important—they had acquired functions in relation to the freight industry, as well as certain safety functions on top of that, so there was a reason for continuing the traffic commissioners then.
The noble Lord, Lord Goddard, will have noted, in his careful scrutiny of my amendment, as will have other noble Lords, that it refers only to the bus functions of the traffic commissioners. There is nothing here that would abolish them entirely. That is a pity, in my view, but I was advised by the Public Bill Office that an attempt to abolish them entirely would be outside the scope of the Bill.
The commissioners survived 1985, although there was really very little need for them. The Government are returning to a sort of 1920s view of how buses should be run in the Bill before us, but not giving the same functions back to the traffic commissioners. The decisions about where the routes should run, who should have a special licence and what the fares should be will in effect fall to the local transport authority, not the traffic commissioners, but they are to continue. Their functions include enforcement on safety matters, yet their budget for that is derisory and, effectively, there is very little enforcement. A lot of that work is done, in relation to freight at least, by the DVSA and not by the traffic commissioners.
Generally, it would be a good time to have a bit of a clear out of the bureaucracy that encrusts our modern society. I would like to see the traffic commissioners go entirely and what functions they have transferred to the Department for Transport, but the proposal today, for scope reasons, as I said, is slightly more modest. I do not expect the Minister to accept it, but it is a proposal that those of us here in Committee with a slightly more revolutionary spirit—I am sorry that does not include the noble Lord, Lord Goddard, or maybe it does; we shall hear when he comes to speak—should embrace to see some real change, at last, at the seat of government.
The Earl of Effingham (Con)
My Lords, perhaps I might briefly address one of the suggestions of the noble Lord, Lord Goddard. I was present in the Chamber, as I frequently am, during the Football Governance Bill. I appreciate that he might not be that interested in the difference between the crests and the arms, but the College of Arms is run by my noble kinsman His Grace the Duke of Norfolk, and I can tell him that the argument put forward as between crest and arms is relevant and has implications. It is important to realise that. He may well want to look into it; I am happy to explain to him why it is important, if he is interested.
Lord Hendy of Richmond Hill (Lab)
My Lords, the imminence of the recess suggests to me that I should not challenge the noble Lord, Lord Moylan, in his knowledge of the history of the traffic commissioners, but I will do that over a drink some time. I am less interested in the development of the Road Traffic Act 1930, or indeed the Transport Act 1985, than I am in the future of the bus service in the 2020s.
Traffic commissioners play an important and strategic role in the transport sector and, these days—principally but not wholly—in road use safety. I certainly refute completely any suggestion that there is an absence of enforcement; the Driver and Vehicle Standards Agency does that. Traffic commissioners are an admirably economic and cost-effective way of dispensing justice to bus operators and bus drivers—those who are licensed to provide these important and, indeed, safe services—in a way that is widely celebrated in the industry and regarded as far more effective than any other solution. Indeed, the independent review of the traffic commissioner function undertaken by the Ministry of Justice, published in May 2023, found that
“the Traffic Commissioner function generally operates effectively”
and noted a strong level of support from the industry for functions continuing to sit with the traffic commissioner. The truth is that for a regulatory arrangement to be so widely celebrated by the industry it regulates is something to be celebrated, rather than abolished.
Lord Moylan (Con)
My Lords, is the Minister not rather concerned that the regulator is so widely celebrated by the industry it regulates?
Lord Hendy of Richmond Hill (Lab)
One of the reasons why is because it is not in the industry’s interest to have poor-quality operations competing with it; that is true in respect of both the goods sector and the passenger transport sector. When the traffic commissioners take enforcement action, including depriving drivers or operators of their licences or curtailing them, it is widely celebrated by those operators who do take account of the law and operate safely. That is what is important.
On our earlier discussion about the safety of bus operations and bus drivers, finding a mechanism that is effective for disciplining those drivers and operators who transgress the law—sometimes with no intention of complying with it—is very effective. I encourage noble Lords to consider the alternative mechanism of taking taxi drivers in front of magistrates’ courts, which are often found by everybody looking at the actions of the magistrates to be excessively lenient and persuaded by drivers’ explanations of their behaviour that would never pass muster with the traffic commissioner. It is a very important judicial function, and the commissioners need to be supported.
Returning to the Bill, your Lordships will have noticed that some limited changes are proposed to the functions of the commissioners. These include changes to services operating under service permits with enfranchised areas and powers to act against bus operators who breach the mandatory training requirement. The Bill is about empowering local leaders to take decisions on how best to run bus services in their areas. The presence of traffic commissioners across the regions of England—and, for that matter, Scotland and Wales—is complementary to this Bill’s objectives. They are well placed to use local knowledge to take the decisions they do in the execution of their powers, and I certainly do not believe that the noble Lord has made any case for change in the way that this amendment suggests.
Member’s explanatory statement
This amendment provides for Clause 21 of the Bill to be brought into force by regulations instead of coming into force two months after Royal Assent. This is to allow sufficient time for guidance under new section 144D of the Transport Act 2000 (inserted by Clause 21 of the Bill) to be prepared.
The Earl of Effingham
(4A) Sections 1 to 15 may not come into force until the Secretary of State has published and laid before Parliament the report required by section (Impact assessment on rural areas).”Member’s explanatory statement
This amendment combined with another ensures that the Secretary of State must publish and lay before Parliament a report on the impact of sections 1 to 15 on rural areas before they come into force.
The Earl of Effingham (Con)
My Lords, I am aware that we have already discussed various aspects of this amendment in the debates, so I will be brief. Before we move forward with significant changes to our bus services, we think it very important to pause and ask: what will this mean for rural communities? That is precisely why this amendment is so important. It would ensure that before Clauses 1 to 15 of the Bill take effect, the Secretary of State must publish a report assessing the impact on rural areas.
This report is not about delaying progress; it is about ensuring informed progress. We need to understand whether these reforms will improve rural connectivity or unintentionally make services even harder to access. Will funding be allocated fairly? Will small operators that serve rural routes still be viable? Will local authorities have the powers and resources needed to support these services? These are critical questions that must be answered before the Bill comes into force. I beg to move.
Lord Hendy of Richmond Hill (Lab)
I thank the noble Earl, Lord Effingham, for his remarks on Amendment 82. I also thank him, the noble Lord, Lord Moylan, and all other noble Lords for the issues they have raised in Committee. I have found the exchanges useful in discussing the purpose of the Bill and considering issues raised across your Lordships’ Committee. The Bill reflects how important it is to improve local buses for passengers across the country, including those who are woefully underserved in rural areas. Throughout this process, the needs of people living and working in and visiting rural areas have been integral to policy development.
Government officials have worked hard to publish a thorough and comprehensive impact assessment that has been rated green by the independent Regulatory Policy Committee. The assessment covers every one of the Bill’s measures in detail, including in the context of rural areas, so I am afraid I would struggle to justify why a further duplicate assessment is required. Although the noble Earl says this is not about delay, the amendment would have the potential to delay progress on the Bill and therefore to delay its introduction in areas that need its provisions.
It is important to remember that the freedoms allowed by the Bill to franchise and set up a local authority bus company are entirely optional. These powers simply give local transport authorities more choices in how their bus networks are operated. If a rural authority decides to establish a local authority bus company, it will have the flexibility to scale the company to match the needs of its local passengers, its ambitions for the network and the available funding. Additionally, it is important to highlight that the Government have allocated funding to build LTA capacity and capability on buses, including, but not limited to, the Bus Centre of Excellence. They also plan to pilot different franchising models that may be particularly suited to rural areas.
I conclude my remarks there, and once again thank all noble Lords for the excellent debates across the days we have shared in Grand Committee. I look forward to further debate on Report.
The Earl of Effingham (Con)
My Lords, I thank the Minister for his response. I also thank the noble Baronesses, Lady Pidgeon and Lady Grey-Thompson, and the noble Lords, Lord Hampton and Lord Berkeley, whose amendments in the first group were relevant to my amendment. I do not think we need to discuss further and, on that note, I beg leave to withdraw my amendment.