Bus Services (No. 2) Bill [HL]

Baroness Jones of Moulsecoomb Excerpts

Committee stage
Thursday 13th February 2025 Grand Committee

[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.

--- Later in debate ---

[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.