The Association of Local Bus Managers (ALBUM) is pleased there is now more clarity on the government’s bus fare cap. It follows the government’s announcement that the £2 fare cap due to end on 31 December would be raised to £3 in January and is to be in place for 12 months.

ALBUM said that the announcement gives more clarity for the next 14 months, which it says helps customers and bus operators alike.

The organisation, which focuses its support on SME operators, believes retention of the scheme, albeit at a higher price point, will help preserve the growth in the use of many rural and inter-urban bus services that the fare cap scheme has generated during the last 22 months.  “This benefits rural bus users, local economies, and SME bus operators providing bus services in rural and inter-urban areas,” said the group.

Exit strategy needed

In an exclusive interview with B&CB, Tony Depledge, Policy Advisor at ALBUM, highlighted the fare cap as an essential issue the government must address. He warned against a sudden cut off of the fare cap, the potential for which he observed created ‘huge nervousness’ in the industry.

However, he believes the industry and government need to work out what the exit strategy from the fare cap is, saying: “From our point of view, we would like to see the money somehow being retained in buses, but maybe refocused on something that delivers benefits for key groups of people, notably young people moving to the world of work.”

There was a hint at what may be next for bus funding in a statement from the DfT announcing the fare cap’s rise next year, which said: “Moving forward, the government will also explore more targeted options that deliver value for money to the taxpayer, to ensure affordable bus travel is always available for the groups who need it the most – such as young people.”