Local councils have warned Rachel Reeves they may have to cut free and cheaper bus travel for the elderly, schoolchildren and vulnerable groups because of a ￡450million funding gap. According to the Local Government Association (LGA), the national membership body for local authorities, around ￡452million was spent by councils in 2024 to enable older and disabled people to travel free at off-peak on local bus services.

       The figure they cite is the difference between how much money the government gives councils for the scheme, and the number of journeys made in 2024/25, as per Wired-Gov.net. The LGA has warned the Government the scheme represents a further strain on what are already "overstretched budgets" and is leading councils to make cuts to discretionary bus services, including free peak travel, community transport services, reduced fares and school transport. This is only so that they have funds to top up the statutory national scheme with money from their discretionary budgets, as per council news outlet LocalGov.co.uk.

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       Councils in England have a legal obligation to provide bus passes to state pensioners and people with certain disabilities.

       They're also responsible for paying back bus operators for journeys made by passengers with a bus pass.

       The Government has provided extra funding for the next year to keep fares down and protect existing routes, as per Wired Gov.

       This includes the ￡3 fare cap, which ministers said ensured that millions of people can access affordable bus fares and better opportunities all over the country.

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       Cllr Adam Hug, transport spokesperson for the LGA, said: "Free bus passes provide a vital lifeline for many in our communities, allowing vulnerable residents to go shopping, visit family and friends and attend 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."

       A DfT spokesperson said: “We fully recognise free bus passes are vital to many and prevents loneliness, provides access to services and keep people connected to their loved ones.

       “We’re already in the process of making ambitious reforms to the bus sector including on how funding is allocated. Our priority is to deliver long-term funding certainty to local authorities and operators to improve services, increase patronage and ensure free passes are protected.

       “We are investing over ￡1 billion into buses which has meant we have been able to avoid a cliff-edge fare hike and keep fares capped at ￡3 this year, whilst supporting local areas to improve services and reliability, and the ongoing Spending Review will assess the sector’s future funding needs.”