Buses in Crisis

Operating revenue from concessionary fare
reimbursement has more than doubled over the
same period from £500 million to over £1 billion.
This increase reflects the wider coverage of the
concessionary travel scheme (moving from a local
authority to a national scheme), increased eligibility
and a larger proportion of elderly people in the
wider population.
Why bus fares matter
Bus cuts and rising fares are not simply matters of
inconvenience. For many people without access to a
car, buses are the only way they can travel to health
services, colleges and places of work. Poor bus provision
and high fares magnifies social problems, obstructs
the delivery of other public services and holds back
economic recovery.
People from low income families are most likely to
rely on buses to get around. They spend a higher
proportion of their income on bus travel and struggle
to access the best fare deals. Statistically low income
10. Bus fares: a story of
above inflation increases
Bus users are now facing significant bus fare increases
as well as cuts to their services. The DfT recently
released statistics 10 which show the rate of bus fare
increases over the last decade. Most of the data is
derived from the DfT’s survey of bus operators.
In the past year up to March 2015, bus fares in England
increased by 3.3 per cent, faster than the Retail Prices
Index (RPI) rate of inflation which had an average of
0.9 per cent in 2014-15. Between March 2010 and
March 2015, the average annual percentage change in
bus fares was 4.5 per cent, while the average annual
rate of inflation over that period was 3.1 per cent.
Local bus fares in England increased by 61 per cent
on average between March 2005 and March 2015.
Bus fares have risen at a faster rate in metropolitan
areas (71 per cent) than in non-metropolitan areas
(44 per cent). The Retail Prices Index has risen by
35 per cent over the same period, which means that
bus fares have risen significantly in real terms.
Operator revenue
In 2013/14, the total estimated operating revenue
for local bus services in England was £5.6 billion.
Passenger fare receipts made up the largest
proportion of operating revenue: £3.3 billion or
58 per cent of operating revenue. Revenue from
passenger receipts has increased on average each
year by 1.4 per cent in real terms between 2004/05
and 2013/14.
families are less likely to have a car. Some children
from poor families are put at further disadvantage
because their parents cannot afford bus fares to get
them to colleges and services. Children from low
income families are at risk of poverty if affordable
transport is not available.
Fare increases and bus cuts are undoubtedly hitting
some of the poorest families in the country hardest
and the Buses Bill provides an opportunity to
introduce simplified and affordable ‘Oyster style’
smart ticketing. Oyster is equipped with daily price
capping which automatically calculates the cheapest
fare for all the journeys made in a day. There is no
large upfront charge (just £5 deposit) and passengers
are able to pay‐as‐they‐go, topping up their card with
whatever they can afford.
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