Concessionary Bus Passes

Nusrat Ghani Excerpts

Tuesday 8th May 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)]

I congratulate the hon. Member for Cambridge (Daniel Zeichner) on securing this debate about concessionary bus passes, and it is a pleasure to serve under your chairmanship, Ms Ryan.

I am a little bit nervous that I am not dancing or doing cartwheels, and the hon. Gentleman wanted a lot of excitement. Nevertheless, he is right that this debate is very timely and I am delighted that we are here this morning to mark the national concessionary bus pass. Instead of my dancing and singing, the good news may be that I announced some legislation only last month to protect the national concessionary travel scheme in its current form. I know that this issue was raised by more than one Member, so the Government have demonstrated our commitment to making sure that we no longer have to review legislation every five years, and this scheme will now be protected. Surely no greater celebration than that is needed.

Buses are essential for many people to get to work, to school, to doctors, to hospitals and to shops. Also, many hon. Members have commented today on how buses help to tackle loneliness and aid cohesion. For many people, particularly those in rural areas such as my constituency, the bus is a lifeline and without it they would not be able to access essential services or go shopping and socialise, with over half of those who rely on buses having no access to cars.

[Lilian Greenwood]

As the Minister represents a rural area, does she share my concern about the fact that the number of bus miles being served is decreasing? In the last year alone, there has been a 13.8% decrease in mileage on local authority-supported services, which she will know are approximately a fifth of all services. What will the Government do to address that decline in supported services?

[Ms Ghani]

Bus services in rural areas are a concern —especially in my constituency of Wealden—when we are dealing with an older population and people who might not have access to cars. However, this issue is complicated; it is not just about making sure that there is more money available. Funding is available through the £250 million grant that supports bus services, and the bus service operators grant, with £40 million going directly to local authorities. It is also about making buses accessible and easier to use. I will go on to discuss the other things that we are doing to make buses a far more attractive way to travel, in one’s own constituency let alone across the country.

Before that, however, I will just go on to another issue that the hon. Lady raised, which was loneliness. As part of the Prime Minister’s commitment to deliver a national strategy on loneliness, a ministerial group has been set up: I sit on that group as the representative of the Department for Transport. I am a passionate campaigner—even if I am not doing the cartwheels that the hon. Member for Cambridge wanted—for explaining and sharing how buses are vital in tackling loneliness and helping cohesion.

The benefits of a reliable and innovative bus service are clear—less congestion, greater productivity, and communities that are connected rather than being kept apart. However, we need more people to benefit from buses. That is why we introduced the Bus Services Act 2017, which provides local authorities with new powers to bring about change and unlock the potential for the bus industry to achieve more for passengers than it does today.

That includes a range of powers to introduce franchising or enhanced partnerships, with guidance on how local authorities and bus operators can work together to improve bus services in their area. These could include multi-operator tickets, improved vehicle standards and better connections between transport modes, employment and housing, all of which will drive an increase in bus usage and performance.

That is also why, as I mentioned earlier, last month I announced a change in legislation to protect the national concessionary travel scheme in its current form, so that it can continue to provide free travel for elderly and disabled passengers for years to come. It has been noted that the scheme has a value of £1 billion for 10 million people, which means 929 million concessionary bus journeys, or, on average, 95 bus journeys being taken per bus pass.

The concession provides much-needed help for some of the most vulnerable people in society, offering them greater freedom, independence and a lifeline to their community. It enables around 10 million older and disabled people to access facilities in their local area, and helps them to keep in touch with family and friends. It also has benefits for the wider economy, which was a point made earlier.

The national concession sets a minimum standard available to any eligible person anywhere in England, but of course it does not come cheap. That is why, given the current economic situation, there are no plans to extend the remit of the basic concession any further. However, local authorities have the powers to enhance the offer with discretionary concessions, according to local need and funding priorities. That may include extending the times when concessions are available to include peak-time travel, offering a companion pass for people who need assistance to travel, and offering concessions on different modes of transport. Some 71% of local authorities offer further concessions for elderly and disabled passengers. In Cambridgeshire, there are concessions for the elderly and the disabled before 9.30 am and after 11 pm.

Encouraging bus use among the elderly and the disabled is about more than just concessions. We are doing a lot to make buses more accessible. I draw attention to the comments made by the hon. Member for Strangford (Jim Shannon) on dealing with disability in his family and accessibility. On occasion, when I am allowed to leave this place, I am a carer for my parents, who both have very different disability needs. I know full well the occasional difficulties of being unable to understand which buses are running on which routes when dealing with people with different disabilities.

I will say more about accessibility later, but the hon. Gentleman will know that the Equality Act 2010 requires the bus industry to ensure that buses are as accessible as possible for disabled passengers. Recently we also made announcements to make it clear that priority seating should be for people in wheelchairs. Since 2016, all buses have been required to meet minimum standards, with low-floor access. From March this year, all drivers are required to complete disability awareness training. The next step will be to ensure that all buses have audio-visual announcements, so that people with hearing or visual impairments have confidence that the bus they take will work for them. We plan to consult on those proposals this summer.

[Alan Brown]

I welcome audio-visual announcements. I am one of the MPs who backed the “Talking Buses” campaign by Guide Dogs. Can the Minister give a clearer timescale for when audio-visual information will be mandatory on buses?

[Ms Ghani]

We have had the action accessibility plan, which we will respond to shortly—within the month.[Official Report, 10 May 2018, Vol. 640, c. 10MC.] We are working with the Royal National Institute of Blind People and the charity Guide Dogs. We meet regularly with them to talk about how we can make the information available on all our buses, and in the most appropriate form. Unfortunately, during a trial some passengers complained that too much information was being given out all the time, and that occasionally the wrong information was given out. We are working on that with all the charities involved with people with visual impairments.

The hon. Member for Reading East (Matt Rodda) has talked about concessions for younger people on several occasions. I draw attention to the comments made by the hon. Member for Keighley (John Grogan) that any concessions or free bus service available for younger people has to be financially robust and stand up to the rigour of examination. The Government recognise that public transport is of particular importance to young people, and that the cost of travel can cause difficulty for those seeking education, training or employment opportunities. That is why a trial extension of discounted rail travel for 26 to 30-year-olds has recently been announced. That industry-led initiative to gather evidence on a full roll-out has seen a 100% take-up. The first phase of the trial saw 10,000 railcards sold across Greater Anglia, including Cambridge.

As I mentioned, local authorities have the powers to offer travel concessions on buses to local residents, and there are many examples of that for groups such as students. As part of the Bus 18 partnership between operators and West Yorkshire combined authority, there are half-price tickets for young people up to the age of 19, and pupils wearing their school uniform will no longer have to show a half-fare bus pass. In Liverpool, the voluntary bus alliance between Merseytravel, Arriva and Stagecoach has seen a flat fare of £1.80 for young people, with growth of 140% in bus travel by young people, as well as overall passenger growth of 16%. In Hertfordshire, young people aged 11 to 18 can pay £15 for a card that entitles them to half-price fares on local services.

There is more to encouraging bus use than cost alone. A recent report by Transport Focus found that young people want better access to information about buses. That is why we introduced powers through the Bus Services Act 2017 to require operators to provide better information on fares, timetables and when the next bus will arrive. In addition, a national scheme such as that in place for older and disabled people would require a change to primary legislation, but there are no plans to do that at present. The hon. Member for Reading East will appreciate that this is a complex area and there are no quick and easy solutions. The Department continues to work with local authorities and bus operators on young people’s travel.

I return to the comments made by the hon. Member for Keighley on the robust nature of the budget put forward for free bus travel for the under-25s. Labour originally calculated that policy to cost more than £1 billion, but unfortunately, the numbers were later calculated to be closer to £13 billion. At the moment, that has not reached robust investigation in Westminster Hall.

[Matt Rodda]

I thank the Minister for her support and praise for local discounted schemes. I want to raise the report by University College London, “Social prosperity for the future: A proposal for Universal Basic Services”. Although we are not proposing this—perhaps to the disappointment of my hon. Friend the Member for Cambridge—the research by University College London estimates the possible cost of free bus travel for every person in the UK to be £5 billion per year. That suggests that the Minister’s estimate of £13 billion is somewhat excessive. Our estimate of £1.3 billion has been costed carefully.

[Ms Ghani]

The hon. Gentleman started at £1.3 billion and then moved on to £5 billion, which possibly could reach £13 billion—I am a little nervous about the true figure. We already have a concessionary programme that costs £1 billion. To announce something as available without it having been costed would do the bus industry no service.

The hon. Member for Kilmarnock and Loudoun (Alan Brown) mentioned apprentices; the Department is considering concession options for apprentices and is completing research on a feasibility study. We will report on that later this year and it will inform the development of the policy. There are no plans to fund such a scheme but we will see what the feasibility study concludes.

Reimbursement by local authorities to bus operators is made on a “no better off, no worse off” basis. The hon. Member for Cambridge noted that reimbursement appeals have been in decline and have reached a new low. In 2006-07, there were 69 appeals, but in 2017-18 there were just 21. That means that operators are fairly recompensed for the cost of providing concessionary travel in both urban and rural areas. The reimbursement mechanism is now fit for purpose, as shown by the large fall in reimbursement appeals in recent years. EU state aid rules do not allow the Government to provide the concessionary scheme on any other basis—it cannot be used to provide hidden subsidy to operators.

Much has been said about the increase in pension age; the state pension age of men and women is being equalised. The pensionable age for women has risen gradually to reach 65 this year, and the state pension age for both men and women will rise to 66 by 2020. Equalising the age at which free bus travel applies makes the national travel concession scheme more sustainable. Finding efficiencies in this way rather than cutting back on the entitlement offer to older and disabled people is the best way to focus support on those who need it most.

It is right that Government support focuses on the most vulnerable members of society. The Government believe that local authorities are often in the best position to offer concessions that work for the people who live there. All local authorities have powers to introduce concessions in addition to their statutory obligations, including the extension of concessionary travel to those who are yet to reach the qualifying age. For example, in Cambridgeshire, the largest operator offers half-price travel to jobseekers.

I return to the point raised by the hon. Member for Cambridge about securing funding for concessionary travel schemes, which sit across many Departments. He was right to note that the Ministry of Housing, Communities and Local Government is responsible for the concessionary travel budget. The Treasury is jointly responsible for local authority ring-fencing. I work with all those Departments to ensure that we get the best that we can for bus services. We have just agreed a further two-year ring-fence for the local authority element of the bus service operators grant for the next two years.

The hon. Member for Cambridge also mentioned franchising; he will be aware that any local authority can request franchising, but will need to demonstrate delivery capability and a track record of doing so. We will see how that pans out.

I want to quickly talk about air quality and congestion, which was raised by the Chair of the Transport Committee, the hon. Member for Nottingham South (Lilian Greenwood). We have recently made some good announcements on that. The Government are committed to buses being greener, which is why we announced an extra £48 million for ultra low emission buses. That follows £30 million in funding for 300 new buses through a low emission bus scheme and £40 million for retrofitting 2,700 older buses to reduce tail-pipe emissions of nitrogen dioxide through the clean bus technology fund. We are trying to make journeys easier and more accessible, and to ensure that the concessionary bus pass remains in place.

I hope that I have demonstrated that the Government are committed to protecting the national concessionary travel scheme for buses. We are keen to do what we can to improve bus service patronage. Of course, I will meet with the hon. Member for Cambridge if he has good evidence of best practice, especially of initiatives that have taken place in other countries that we can use here, and especially if they involve new, innovative technology, to learn as much as we can to ensure that the Department is doing what it can to increase bus patronage.

We are determined to ensure that bus patronage increases as much as it can, and we are focused on delivering concessions to those who need it most, while allowing local authorities and operators the flexibility they need to support their local populations. It was interesting to hear that, as we get older, we migrate from the front of the bus to the back of the bus, and then to the front of the bus again. Hopefully, we can all wait our turn until we get hold of our concessionary bus pass. Some will have to wait a little longer than others, but it will definitely be there, once we reach our old age.