Following the extension of the concessionary travel scheme in April 2008 to free off-peak local bus travel anywhere in England, the Government provided additional funding to councils who administer the scheme, taking the total amount spent to around £1 billion every year.

However, following concerns that some councils have received too much money, whereas others not enough, the Department for Transport is re-considering how the money is distributed.

Transport Minister Sadiq Khan said:

“The free bus pass is a popular policy giving 11 million older and disabled people greater freedom and independence. Around £1 billion is now spent in total on this scheme every year with over £200 million devoted to extending it to travel anywhere in England.  Ensuring this extra money is distributed fairly and to where it’s needed most is critical to  the continued success of the scheme.

“We have listened to concerns raised by some councils about the way the grant has been allocated and also assessed last year’s spending to ensure that we are getting it right. Today we are publishing a proposed revised grant distribution for 2010/11 which seeks to better match the pattern of costs being incurred.

"The changes we are proposing build on the success of the national bus concession and will not in any way affect older or disabled bus users who use the scheme. I now look forward to hearing views from authorities and hope to publish the final grant distribution early in the New Year.”

In total around 200 authorities will receive more money or will be unaffected by the revised distribution.  Overall the total amount of money allocated will remain unchanged.

The special grant funding is in addition to the amount Government provides each year for concessionary travel through the formula grant process which continues to be the route for the bulk of Government funding. The special grant brings total spending on concessionary travel to around £1 billion a year.