Labour councillors claim bus funding shortfall is putting Midlothian services at risk
The councillors have described the shortfall as a “funding scandal”
Labour councillors in Midlothian are calling for an urgent review of bus concession payments amid claims services are being cut because of underfunding.
In what they have described as a “funding scandal” the group says payments from Scottish Government to bus companies is sometimes nearly half of what the journey would generate if paid by customers.
Transport Scotland, who oversee the bus concessions, insist they have a “no better, no worse” policy for operators taking part in the concession scheme saying the rates are agreed with bus operators and they say the rate takes into account some people using cheaper tickets or not using the pass at all which is why it does not match the standard fare.
In a motion due to go before a meeting of Midlothian Council next week the Labour group say the payments are not enough to support bus services and are asking elected members to write to Scottish Ministers urging them to review the funding rate.
They say that while the actual fare for over 60s, disabled people and youngsters aged between 16 and 21 is £2.40. The Scottish Government pays £1.27 for over 60s and disabled people and £1.74 for youths over 16.
Children aged between five and fifteen would pay a £1.20 fare and the Scottish Government pays bus firms £1.15.
Labour group leader Cllr Derek Milligan says the difference in payments means bus companies are losing money on some services leading to busy routes being cancelled.
He said: “We now know why the very busy 46-bus service was withdrawn because a high percentage of the 46 Roswell to Musselburgh bus passengers are bus pass holders.
“The Scottish Government likes to boast about free bus travel, but it is failing to properly pay for it. The reality is that bus operators are being asked to deliver government policy while being left out of pocket.”
He added: “It is simply unacceptable that a passenger paying £2.40 for a journey generates only £1.27 in reimbursement when using a concessionary pass. That funding gap has to be made up somewhere, and increasingly it is being made up through service reductions, route withdrawals and diminished connectivity for local communities.
“The SNP Government cannot continue to champion free bus travel with one hand while starving the bus network of funding with the other.”
The motion led by Cllr Milligan and seconded by Cllr Russell Imrie says that England operates concessionary travel funding on a “no better, no worse” principle.
However, Transport Scotland says it operates the same approach, adding it also seeks to take account of the range of fares on offer by applying a discount factor to the reimbursement rate to account for people buying period or return tickets.
Their spokesperson said: “The reimbursement rates for our concessionary travel schemes are calculated and agreed with the bus industry with the aim of ensuring that bus operators are financially no better or worse off as a result of their participation.
“The latest available data, provided by bus operators including on operators costs is taken into account.
“In 2026-27, the Scottish Government is providing almost £530 million for bus services and concessionary travel. This includes £465.8 million for the Older & Disabled Persons’ and Young Persons’ Concessionary Travel Schemes, supporting free bus travel for 2.4 million cardholders, including everyone aged 60 and over, eligible disabled people, and all children and young people under 22.
“Our support also includes £46.5m through the Network Support Grant to support current bus services and help bus operators keep the bus network more extensive and fares lower than would otherwise be the case.”
Backing the motion, Cllr Imrie said the reality is that the payments are putting services at risk by not meeting the cost.
He said: “When a bus service is cut, it is not ministers in Edinburgh who suffer the consequences. It is the over 60s trying to get to a hospital appointment, the apprentice travelling to work, the student getting to college and the family without access to a car.
“For many people, the local bus service is not optional. It is their connection to jobs, education, healthcare and everyday life.
“If ministers are serious about tackling inequality, supporting rural communities and reducing car dependency, they must ensure bus operators receive fair reimbursement, and they must do it now.”