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Reimbursing bus operators: analysis of the Department for Transport's guidance
April 2008
In the UK the Concessionary Bus Travel Act 2007 extended the statutory minimum entitlement for free off-peak local bus travel for residents over 60 and/or disabled passengers to local bus travel anywhere in England from April 1st 2008.
In the context of this extended bus travel entitlement, the Department for Transport (DfT) issued guidance to local authorities in England on reimbursing bus operators for providing this service.
This guidance was accompanied with a ‘reimbursement analysis tool’ (RAT), a spreadsheet tool to quantify the reimbursement due to bus operators. Oxera has reviewed the approach and evidence base used by the DfT in light of the objective of leaving operators 'no better and no worse off'. This report presents Oxera's analysis and finds that there are several areas where there is limited evidence to support the DfT's approach and recommended values.
In the context of this extended bus travel entitlement, the Department for Transport (DfT) issued guidance to local authorities in England on reimbursing bus operators for providing this service.
This guidance was accompanied with a ‘reimbursement analysis tool’ (RAT), a spreadsheet tool to quantify the reimbursement due to bus operators. Oxera has reviewed the approach and evidence base used by the DfT in light of the objective of leaving operators 'no better and no worse off'. This report presents Oxera's analysis and finds that there are several areas where there is limited evidence to support the DfT's approach and recommended values.
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