Issue details
Public transport concessionary fares reimbursement November 2021 – update to payment arrangements
Throughout the Covid-19 pandemic the council
has followed
Department for Transport (DfT) guidance by maintaining
concessionary fares reimbursements to bus operators at pre-pandemic
levels despite the fall in pass holder patronage. This has, in
turn, allowed operators to maintain high service levels throughout
the pandemic.
There have recently been a number of bus services withdrawn in the
County, some of which will in the future be operated by a different
bus operator. There have also been a limited number of new
additional services introduced. It is not appropriate to pay bus
operators for services they are no longer and, conversely, it is
appropriate to ensure operators are properly reimbursed where new
additional services are introduced. The revised payment
arrangements from 1 November will account for this and will allow
payments to be adjusted where appropriate.
Within the Concessionary Travel Supplementary Guidance (20 November
2020), the DfT suggested Local Transport Authorities (LTAs) may
consider several principles when developing their methodology to
calculating pre-Covid reimbursement payments:
1. Seasonality of services – (some authorities have adopted
approaches to cover this, for example, averaging two lower winter
and two higher summer payment methods)
2. Decline in concessionary patronage - (total concessionary bus
journeys fell by 2.5% in England in 2018/19, however, this may vary
across local areas)
3. Decline in patronage as a whole
4. Operators may have ceased trading/some services
5. Operators may have started trading/new services
6. Operators may have varied their services to increase/decrease
the frequency/length of journey
In October 2021 the Government published its Covid-19 Recovery
Guidance, Concessionary Fares Funding, a copy of which can be seen
at appendix 1. This sets out the Governments suggested approach of
transitioning from pre-Covid level payments, to reimbursement based
on actual usage. The guidance advises a reducing payment profile as
set out in the table above
The objective of the concessionary travel recovery strategy is to
provide LTAs with a cost-effective way of reducing their pre-Covid
concessionary payments whilst avoiding any sudden widespread
reduction in these payments. This is because any sudden reduction
could lead to a significant impact on operator service levels, and
consequently to an effect on demand levels.
The Concessionary Travel Recovery Period will commence on 06 April
2022 and will officially end on 05 April 2023. LTAs will be unable
to provide pre-Covid levels of concessionary reimbursement payments
after this date.
Decision type: Non-key
Decision status: Recommendations Approved
Notice of proposed decision first published: 23/11/2021
Decision due: 19 November 2021 by Director of Economy and Place (Historic)
Contact: Neil Taylor, Interim director of economy and place Email: Neil.Taylor@herefordshire.gov.uk Tel: 01432 260921.
Decisions