Free Bus Passes for Elderly and Children at Risk Amid £450m Shortfall

Free and discounted bus travel for the elderly, schoolchildren, and vulnerable groups is at risk due to a £450m funding gap, prompting local councils to urge the Government to step in.

On Wednesday, the Local Government Association (LGA) will call for urgent funding support, as councils in England spent £452m last year to cover the cost of bus passes for older and disabled passengers.

Councils have warned that without additional funding, they may have to cut free peak-time travel for pensioners, community transport services, school transport, and discounted fares to manage costs.

While local authorities are legally required to provide bus passes for state pensioners and people with disabilities—reimbursing operators for these journeys—discretionary services, such as free peak travel, capped fares, and school transport, are already being reduced to balance budgets.

Adam Hug, LGA transport spokesperson, emphasized the importance of these services, stating: "Free bus passes are a lifeline for many, enabling vulnerable residents to shop, visit loved ones, and attend essential appointments."

“Councils want to keep this scheme running, but cannot keep having to find nearly half a billion pounds a year from their own overstretched budgets to make up the shortfall, money which instead could be used to help other people in need to get to work or college.

“By using the Spending Review to plug this gap and give councils the long-term funding they need, we can help government meet its own objectives of breaking down barriers to employment and opportunity, while boosting inclusive economic growth.”

The Local Government Association (LGA) claims the £452m funding gap represents the shortfall between the funding councils receive from central government for the bus pass scheme and the actual cost of journeys made over the past year.

The LGA is urging Chancellor Rachel Reeves to address the issue in June’s Spending Review, calling for long-term, stable funding for local bus services and additional support to cover the shortfall over the next three years.

According to the LGA, closing the funding gap would lead to better public transport, aligning with the Government’s goal of boosting economic growth and opportunity by helping more people access work, education, and training—particularly those without access to a car.

Last year, Labour replaced the £2 bus fare cap with a £3 cap, arguing the increase was necessary due to a lack of funding from the previous Tory government. In response, some local authorities, including Greater Manchester, provided their own subsidies to maintain the £2 cap.

Meanwhile, years of cuts to local bus funding have had a severe impact. The i Paper previously revealed that since 2010, some councils have reduced bus services by over 90%, leaving millions stranded.

Across the 10 worst-affected areas, including Nottingham, Cumbria, and Portsmouth, local leaders say a combined 16 million miles of bus routes have been lost due to reductions in central government funding.