ALBUM Chair, Bill Hiron comments on the Concessionary Fares Scheme.
‘The Concessionary Fares Scheme makes an important contribution to the mobility and health of older people and people with disabilities.
ALBUM members want reimbursement to be fair and equitable.
ALBUM will work with the Department for Transport on the review of the English National Concessionary Fare Scheme; we want a scheme that adequately reimburses operators for lost revenue and hope also that we can find a way to give an incentive both to operators and to local authorities to grow this important market.
The very local nature of bus services – particularly those provided by the SME sector that ALBUM represents – means that the reimbursement must take account of local circumstances.
We do not believe that a nationally-negotiated reimbursement rate could take account of those essential local factors. It is, however, clear that local authorities need adequate resources to reimburse operators and that reimbursement levels should be based on a strong set of principles that can be set nationally.
ALBUM has no view on whether spending by local authorities on concessionary fares should be funded nationally, locally or by a mix of the two. We believe that local authority budgets need to consider increases in industry costs and concessionary fare usage and, therefore, the costs of proper reimbursement; we should never be in a position where reimbursement levels are scaled back to fit locally determined budgets.
ALBUM welcomes the very pragmatic approach taken by the Department for Transport and local authorities in maintaining concessionary fares payments as the impact of the public health emergency continues to affect usage. As we continue to move out of those challenging times, we want also to move away from old arguments about reimbursement.
A constructive relationship between bus operators and local authorities is essential for mobility in every area, and concessionary fares are part of that. Where reimbursement rates are too low, the risk to the survival of routes and services is clear – it benefits no one if concessions are provided on services that no longer exist.’