Discount Bus Travel Deal

Over 60s and disabled people will have free bus travel guaranteed for the next two years.

Transport Scotland and the industry bosses have agreed terms on a £414 million deal for reimbursing operators from April 2015.

Ministers say the deal reflects growth in demand, fares and costs, and falling fuel prices.

Transport Minister Derek Mackay said concessionary travel is "a key part of the Scottish Government's social wage" and makes a "real difference" to many of the 1.2 million national entitlement card holders.

He said: “Research shows the National Concessionary Travel Scheme is greatly valued by users. Card holders themselves say it helps them financially, gives them a greater sense of independence, reduces feelings of isolation and gives them more confidence in their own ability to travel.

"The £250 million we provide every year for the bus industry is not only helping the industry provide services and invest in new greener fleets, but also benefits concessionary travel scheme users by an average of around £250 every year.

"The latest reimbursement terms are based on a formula agreed with the industry in 2013. They will help provide stability for the industry, with recent energy forecasts also taken into account to help manage the costs of the scheme - welcome news for taxpayers.”

The current reimbursement rate is 58.1% of the adult single fare, with a budget of £192 million.

The new rates will be 57.1% in 2015/16 and 56.9% in 2016/17. The budgets for each year will be £202 million and £212 million respectively.

George Mair, Director of CPT Scotland, said the agreement signifies the end of a thorough and fact-based assessment of the scheme, should ensure that budgets for the next two years more closely mirror actual costs.

He said: "This gives bus operators a welcome degree of certainty and signifies a pathway for future such discussions.

"We thank Transport Scotland for its constructive and positive approach throughout this process.”