Taxpayers are bankrolling the bus industry in England.  Subsidy has risen by half in ten years, to £2 ½ billion in 2007/08, amounting to over half the turnover of the industry. There is therefore a strong case for investing public money in improving the quality, frequency and coverage of local bus services. 

The Local Government Association (LGA) believe there is a need for a fundamental review of the bus subsidy system to look into how better value for money and better outcomes could be secured from continued public sector investment in bus services.

To inform this debate, the LGA commissioned Oxera Consulting Ltd to produce an independent report, which would:

•  examine how efficient existing subsidies are in meeting public policy objectives and delivering improved bus services in England (outside London) and Wales,
•  make recommendations of how value for money could be improved.

The independent report: “Subsidising buses: How to get the best from taxpayers’ money” reaches a number of important conclusions:

•  There are currently seven separate forms of subsidy to the bus industry;
•  Spending on subsidy has gone up by over £1bn in the last five years;
•  Most subsidy is paid without bus companies giving any guarantees in terms of what service they will provide in return;
•  Subsidy is badly targeted to under-served, or highly congested areas or where there are particularly low passenger numbers;
•  The overall subsidy package is of questionable value for money;

This report raises some challenging questions and puts forward arguments for change.  It also highlights the need for further, more detailed analysis to understand the impact on services, patronage, fares and company profits of existing subsidies and different options for change. 

Download Subsidising buses: How to get the best from taxpayers' money

http://www.lga.gov.uk/lga/core/page.do?pageId=2776727

Ministers and council leaders today rejected a proposal in a report commissioned by the Local Government Association suggesting free bus travel for all pensioners should be abolished.

David Sparks, the LGA spokesman for transport, said: "Councils are emphatically not in favour of means testing free bus fares. Bus concessions for pensioners are popular and councils wholeheartedly support them."

The LGA found itself in the unusual position of disowning one of the key findings in a report it funded after organisations representing pensioners reacted angrily to suggestions that free bus passes could be abolished.

The report was commissioned after the LGA, which represents all councils in England, concluded that £2.5bn spent subsidising bus services does not represent value for money.

In its report, Oxera, a consultancy, said the money could be better spent. One of its proposals was for better-off pensioners to lose their right to free bus travel.

"Although the [concessionary fares] scheme has helped to improve social inclusion, there is also evidence that the scheme is targeted too widely, benefiting many people on higher incomes and with access to cars (ie those not affected by social exclusion and accessibility issues before the introduction of the scheme)," Oxera said.

But the LGA said that, although there were "real problems" with the way the concessionary fare scheme operated, it did not accept the Oxera recommendation.

Sparks said: "We are clear that means testing is not a way forward."

The government also rejected the proposal.

"There are no plans to make the concessionary bus pass means tested. The intention of the bus travel concession has always been to ensure that no older or disabled person in England need be prevented from local bus travel by cost alone.

"For many it can be a lifeline, providing access to everyday services as well as allowing people to visit family and friends," a spokesman for the Department for Transport said.

"We're confident there is enough money in the system in total. However, we recognise that some councils have concerns.

"That is why we have recently consulted on the administration of the scheme, and are also looking at options on whether to distribute the special grant in a different way to ensure the funding is fairly distributed across the country. Any such move would, of course, be subject to further consultation."

Labour promised free bus travel for pensioners before the 2005 election. The scheme originally just allowed pensioners free travel in the area where they lived, but it was extended to cover bus travel around the country.

http://www.guardian.co.uk/politics/2009/aug/06/free-bus-passess-lga

Welcome to the third edition of the Freedom Pass newsletter which is jam-packed with useful information on the 2010 reissue.

In this edition we have also taken the opportunity to address some matters raised by boroughs; we feel it's better to inform you all via this newsletter.

In this issue:

• Publicity
• Find a celebrity
• A-Z dates
• Passes and wallets
• Call centre
• Photographs
• Letters of Authorisation
• 2010 Card Management System
• Barcodes
• Update on the card technology
• Other stuff
• Key dates
• Reminder

Publicity

We are pleased to announce the venue for the media launch of the 2010 reissue which will be held on The Deck, a stunning rooftop venue at the National Theatre overlooking the Thames. The launch event will be in the morning of Tuesday 12 January 2010. Invitations will be sent out in due course and, of course, borough contacts will be amongst those invited.

A publicity toolkit will be issued to boroughs next week.  This will include the artwork files for the campaign posters, a template press release that you can amend for your own use, and guidance on what makes an acceptable photograph for the new card. The primary contact for this is emma.stewart@londoncouncils.gov.uk(020 7934 9754). Colleagues should be aware that discussions are also taking place with your borough communications departments and it is important that you contact them to discuss the current situation to prevent any misunderstanding.

The TEC Executive committee saw an illustration of the poster campaign design and was happy with the proposed concept.

Find a celebrity

We are still searching for a celebrity as befits the occasion and help us gain some good media coverage for the reissue. We will let you know more when we have a star (start digging out those autograph books now!).

A-Z dates

Attendance (A-Z) dates have now been set and agreed with the Post Office. A poster is being prepared for boroughs and we hope the Post Office will also be able to display this information prominently. The dates are are:           

We then begin the process of contacting those who have not renewed:

• 8 -13 Feb – London Councils identifies those who have not renewed and sends data to mailing house
• 14-21 Feb – mailing house prepares the data and reminder letters
• 22 - 24 Feb – reminder letters are delivered

Passes and wallets

We are pleased to say that the wallet designs have now been agreed for all 33 boroughs and will shortly be produced in numbers based upon previous issues. We have also seen the material that will be used by the manufacturer. This has been subject to intense scrutiny because of concerns that the wrong material could damage the pass.

The back of the pass has also been changed and will be in monochrome subject to approval.

Call centre

We are looking at enhancing our call handling for the reissue period and discussions are taking place with contractors with the intention of providing answers to frequently asked questions relating to the reissue and the scheme.

Photographs - part 1

The provision of photographs for 2010 has raised a number of questions and this is an opportunity to clarify what will happen.

Firstly we should clarify that discussions are ongoing with the photo booth company Photo-Me regarding possible sponsorship opportunities.  No decision has yet been made on whether they will be involved in the campaign. We should have more news about this in the next couple of weeks.

Photographs - part 2

We have received a query regarding the need for the photo to be front facing, full face and why it is necessary to use the driving licence standard. The need for the photo to be front facing and full face is set out in the guidance provided by the DfT and was the basis for the reissue of passes in 2008 by all the other English authorities. We have said that a shorthand way of describing the photograph requirements is that it should be the equivalent of a colour photograph acceptable for a driving licence application (the requirements are much less onerous than for a passport).

Any photograph that is not full face is likely to encounter problems when presented for use. Firstly, if the picture is not clearly identifiable as the person carrying it they may be refused carriage and could have their pass withdrawn (particularly on non TfL services). Secondly, there would be serious potential for fraudulent use of the pass by a third party which could in turn lead to serious consequences for not just the person misusing the pass but also the person it was issued to originally.  Boroughs must therefore put in place a procedure for dealing with customers for whom a full face picture is a difficulty.

We asked the DfT if they have any further guidance on this and they said they has received no queries relating to this matter since this process began in 2008.

Please see below the basis template used by other English local authorities.  Our guidance on the photographs will be similar and included in the publicity toolkit going out to boroughs.

Letter of Authorisation - LoA

It is important that the LoA are not issued too early because if they are presented to the Post Office before January 2010 they will not be accepted because the 2010 reissue system will not switch on until 1 January. We recommend that they are posted in the last week of December 2009. This minimises the likelihood they will be lost by the client or presented too early.

We are considering whether to set up a postal clearing house to support boroughs, so that the letters can be stockpiled and then dispatched at the right time. This means LoAs (in addressed envelopes) can be produced over the next four months and are stored and issued from a central mail out provider. We are exploring this and will try and provide more details shortly.

2010 card management system

It is probably time to give you an update on the back office which supports the card issue process and ongoing card management. Stormey Devine has put together a short note on the CMS (card management system)

In 2010 the Freedom Pass will have a standardised/web based Card Management System (CMS) for all of London.  It will link directly with the Post Office and Own Application Boroughs.  It will be more than just a database of pass holder details. It will be a complete card management tool.  It will control the process from point of application to card distribution and beyond.

The CMS will be an integral part of the 2010 re-issue.  It will make the whole process possible.  Unlike other years, pass holders will not receive a pass on the spot. Therefore the transfer/monitoring/cleanliness of data is essential.  The CMS will enable London Councils and Boroughs to know exactly where an application is at any point in time.

Added benefits will be the timely access to data and ability to produce vital reports (i.e. Apportionment), with the click of a button.  Pass holders will no longer need to queue to get a replacement pass, and all hotlisting will automatically link to TfL and ITSO service limited.

If you would like any more details regarding the CMS please contact Stormey Devine (stormey.devine@londoncouncils.gov.uk).

Barcodes

Two million barcodes are being produced. They will consist of two peel off parts; the barcode and the barcode number. The barcode goes on the application form and the number on the back of the photo. The barcode is simply a transaction number that allows us to track an application. The customer will be given a receipt at the conclusion of the application with the number on it. Fujitsu are creating a tracking system that will hopefully then allow the customer to see via the web or through a telephone enquiry at what stage of production their pass is.

Update on the card technology

TfL have assured us that their programme to update the Oyster estate (card gates and readers) is progressing so that they can all read our new Desfire cards will be completed by the end of November.

And on the production of cards we have received the first batch of 60k which are being prepared for encoding and addition of the hologram by Fujitsu.

Other stuff

We are talking to Fujitsu about setting up some seminars for boroughs. The number of attendees for each seminar will be limited (about 8 people at a time) and probably available on a first come first serve basis but all boroughs will have the opportunity to attend one of them. We are also looking at training to allow getting the best out of the CMS, though Fujitsu have told us that most users of the CMS have not needed training as it has proved extremely easy to use.

Key dates

• 1 October – transfer of boroughs who are moving to the Post Office
• 31 December – target date for all boroughs to complete reassessments of disabled people, if being done at this time.
• 4 January – publicity starts, main Post Offices able to accept applications
• 11 January- 6 February – main reissue period
• 31 March 2010 - old Freedom Pass stops working
• 31 March 2010 – reconciliation of monthly old pass stock to be completed by boroughs and post office.

Reminder – 1 October Post Office transfer

For the boroughs who are currently preparing for the transition from being own issue to Post Office, this is just a gentle reminder that the deadline date of 1 October 2009 is fast approaching, again where we can be of assistance please do not hesitate to let us know, however, each borough should now be in a position to make this transition.

http://www.londoncouncils.gov.uk/services/freedompass/issue3.htm

Welcome to the fourth edition of the Freedom Pass newsletter (published 28 October 2009).

In this issue:

• Website launch
• Publicity
• Risks
• Reminders – 31 December disabled consultation
• Key dates
• Card and gate testing
• Application forms and Letters of Authority
• Leaflet
• Post Office transition
• Lost/stolen & faulty consultation
• Other stuff

Website launch

We have a new Freedom Pass website, www.freedompass.org, that is accessible, informative and, most importantly, comprehensive. Please try it and explore its contents. We welcome feedback and will readily amend any incorrect facts or improve clarity where users demonstrate there is a problem. Let us know how you find it and please encourage others to use it.

Publicity

The publicity toolkit is now out there for local publicity campaigns. While it is for each borough to consider how best to use the material, please share your intentions with us as we may be able to advise. The main campaign is still scheduled for early January 2010, when the posters will go up at sites across London and on buses. This will coincide with a local and regional press campaign that should reach pass holders in all boroughs.

We have joined up with photo booth operator, Photo-Me, to help publicise the Freedom Pass renewal. As part of the partnership, Photo-Me are offering one free booth to every London council which will installed - free of charge - at any indoor location, for example in the town hall, central library etc.. Let harry@harrybarlow.com (020 7436 2701) know by 10 November if you're either definitely or provisionally interested. Find out more about the free Photo-Me booth for boroughs.

Risks

It would be remiss not to mention the impact of any postal strike on the reissue process. Needless to say we are discussing with the Post Office the best way to overcome the obstacles that any strikes might pose. It is probably best to simply say that a number of options are being considered at present and that these potentially offer practical solutions.

Of course a postal strike is not the only risk; among the others we also have to consider the possibility of a flu epidemic and extreme weather (eg snow and ice). Hopefully, the reissue window of January through to mid-March 2010 will mitigate these as risks but we continue to review what we can do so that alternatives are available.

Reminders - 31 December disabled assessments

Hear Ye! Hear Ye! Attention all boroughs!!!

As you are aware we have in previous issues advised that all boroughs should have completed assessments of their disabled clients by the end of 31 December 2009. Stormey Devine has been chasing boroughs to establish who has either completed or is on the way to completing this task, and there are a number of boroughs who are yet to feed back. We shall be writing to these boroughs shortly, however, it would be great if you could email us and let us know your progress.

Key Dates

• 31 December – target date for all boroughs to complete reassessments of disabled people, if being done at this time
• 4 January – London-wide publicity campaign starts, main Post Offices able to accept applications
• 11 January- 6 February – main reissue period
• 31 March 2010- old Freedom Pass stops working
• 31 March 2010 – reconciliation of monthly old pass stock to be completed by boroughs and post office.

Card and gate testing update

You can do all of the laboratory testing you like but in the end it is how the new passes perform in the real world that counts. Well we have completed laboratory testing and are now about to see how the passes behave at the gates of tube and rail stations and, most importantly, when used with bus readers. We have had to wait for this opportunity while TfL colleagues amended their gate and reader network for the new generation cards. So far approximately 15 Underground/Overground stations have been completed and approximately 4,000 of the 8,500 bus gate readers have been updated.

TfL are anticipating that everything will be upgraded by the beginning of December, so we will keep you posted. So watch this space!!!!

Application forms and Letters of Authority

These are now finalised and are being printed. Thanks to everyone who contributed comments so that the final form correctly reflects best practice in terms of data capture and ease of completion. We will send out final samples shortly.

Information leaflet

We will be sending out an information leaflet with the new pass. The leaflet has been time consuming to revise because of the need to strike a balance between being informative without overloading and overcomplicating what are essentially simple messages. Once again thanks to everyone who made a comment or recommendation. A copy of the leaflet will be circulated shortly or may even have been by the time you read this.

Post Office transition

Big thanks to all the boroughs that made an all-out effort to make the transition from being own issue for disabled to the Post Office on the 1 October 2009. This was not an easy task but from the feedback received from the boroughs and the Post Office, this went relatively smoothly. Also a big thanks to Kevin Meredith and his team at the Post Office who had taken time to visit and speak to some of the borough officers during this time giving advice on the transition and what to expect. So thanks Kevin!!!

While we are aware that there were some technical glitches experienced, we hope that these have now been resolved or are on the way to being. If any officer has an issue or concern, please do not hesitate to email us and we can forward the details onto Kevin Meredith and Jane Adcock.

Lost/stolen & faulty consultation

This is progressing slowly but surely and the consultation will be completed at the end of the month. As advised at the last BOLG meeting the option that is favoured most by boroughs will be the approach used for all boroughs to establish a more standardized approach to the way cards are treated in these types of situations across. Feedback as to the results of the consultation will be given to officers during the next BOLG meeting.

Other stuff

After our last BOLG meeting and because you love the meetings so much we will be holding a final BOLG meeting on 25 November 2009. An email has already been sent out advising this, so if you let us know your availability on the day we can ensure that we make the last meeting before the Christmas break an eventful one.

http://www.londoncouncils.gov.uk/services/freedompass/issue4.htm

The government's decision today (Wednesday) to reopen the third year of the funding settlement for the national bus concession has angered London Councils.

Under a three year package announced by government in 2008, London was set to receive around £58 million in 2010/2011 to help cover the cost of providing free off peak bus travel in the capital.

However, today Minister for Transport, Sadiq Khan announced that he was reopening the consultation on the final year of the settlement - which could result in London losing around half of this funding.

London Councils fears the capital is losing out because it has run a statutory concessionary fares scheme - the Freedom Pass - for over two decades.

If the government proposals are agreed London would be the biggest loser of any of the major cities across the country - with London boroughs losing on average just under £1 million each.

London Councils' Chairman, Councillor Merrick Cockell, said: "The government's decision at this late stage to alter the deal already agreed is absolutely stunning and will be met with anger across the capital.

"Boroughs have already budgeted for this funding and now London is facing having the amount of funding it was promised almost halved. Under this funding regime London is already disadvantaged, compared to other parts of England, and today's decision could impact on the services boroughs provide."

Ends

The government's consultation on their proposed new levels of grant for the national bus concession runs until 30 December.

The Freedom Pass allows Londoners aged 60 and over plus eligible disabled residents to travel free on the capital's buses, trains, London Underground, trams, and the Docklands Light Railway.

The government's national concessionary fares scheme allows disabled people and those aged 60 and over to use their passes on any off peak bus journey in England. The council covering the place where the free bus journey begins is required to pay the cost of the journey.

http://www.londoncouncils.gov.uk/media/current/pressdetail.htm?pk=833&sh...

London Councils is calling on the government to honour the funding settlement it made with the capital to pay for the national bus concession. It is angry that systematic underfunding by the government of concessionary fares could cost London boroughs an extra £29million next year.

Under a three year package announced by the government in 2008, London was set to receive around £58 million in 2010/2011 to help cover the cost of providing free off peak bus travel in the capital.

But transport minister Sadiq Khan announced last month (November) he would reopen the consultation on the last year of the settlement which could result in London losing about half of this funding.

If the government proposals are agreed, London will be hit harder than anywhere else in the country - with London boroughs losing on average just under £1million each.

In its response to the consultation, London Councils said there has been systematic underfunding for the last decade which must be addressed. It argues the funding has not kept pace with all the statutory burdens on London which have been introduced over the past decade.

The cross-party organisation says it is unreasonable for the government to make changes to funding at such short notice and with just eight weeks of consultation. Boroughs will not know the outcome of the consultation until the New Year, weeks before they finalise their budgets in February.

Chairman of London Councils' Transport and Environment Committee, Councillor Mike Fisher said: "It is totally unreasonable for the government to make changes in funding of this scale at this stage in the budget setting cycle. Boroughs are nearing the end of their budget setting process and it is extremely difficult to factor in a potential loss of £1million. The reopening of the deal at such a late stage and the short consultation breaches the spirit of partnership between central and local government.

"We are angry that London has been treated very unfairly compared to the rest of the country. We led the way on concessionary fares while the rest of the country caught up and now we are being penalised for it."

http://www.londoncouncils.gov.uk/media/current/pressdetail.htm?pk=858&sh...