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Concessionary Bus Travel Act 2007 (Variation of Reimbursement and Other Administrative Arrangements) Order 2010

My Lords, buses are the most widely used form of public transport in this country. Over two-thirds of all public transport journeys are made on them. Buses are particularly important for some of the most vulnerable people in our society. For many older and disabled people, buses provide the only link to the places they want to go and the people they want to see. As your Lordships will be aware, the statutory minimum bus concession was extended in April 2008 to provide free off-peak local bus travel anywhere in England for older and disabled people. The England-wide bus concession is now hugely popular. It provides an opportunity for greater freedom and independence to around 11 million older and disabled people. I should at this point declare an interest as a holder of a national concessionary bus travel pass—in common, I believe, with 84 per cent of Members of your Lordships’ House. The structures in place to administer concessionary travel and to reimburse bus operators for providing it have remained largely the same today as they were when a statutory minimum bus concession was first introduced in 2001. Taking into account the significant increase since 2001 in both the number of concessionary trips being taken and the amount of money consequently at stake, the Government in April 2009 launched a consultation to consider what improvements could be made to resolve some of the problems with the current system. The consultation expressed the Government’s preference for a shift in responsibility for both the statutory minimum and discretionary concessions to upper-tier local authorities. Discretionary concessions are those that are offered as enhancements by local authorities, such as peak travel, companion passes and travel on other modes of transport, such as the railway. The majority of respondents to the consultation were in favour of moving the administration of the statutory minimum concession to a higher tier of local government. Only 23 per cent of respondents considered the current level of responsibility to be the most appropriate. The responses to the question as to who should administer discretionary concessions were more mixed. The Government believe that it will be more efficient for operators and authorities to keep responsibility for the statutory minimum and discretionary concessions together. Therefore, given the majority view in favour of upper-tier administration for the statutory minimum concession, the order moves the responsibility for administering both types of concession to upper-tier local authorities. The Government believe that the change in administrative responsibilities will bring with it many benefits, including: enabling efficiencies to be realised through economies of scale and by reducing the number of negotiations with bus operators; making accurate funding by formula easier, due to less variation in the size and characteristics of the authorities; harmonising concessionary travel and wider transport authority responsibilities for the first time; and assisting with the widespread implementation of smart ticketing. I am sure that your Lordships will agree that the changes being implemented by the order will assist in securing the sustainability of this hugely popular scheme for the future. I commend the order to the Committee.