Correspondence

Letter to bus operators about changes to the bus subsidy regime

Letter sent to bus operators in September 2013 to remind them of the changes to the Bus Service Operators Grant.

Documents

Letter to bus operators about changes to the bus subsidy regime

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Details

This letter to bus operators reminds them of the changes to the bus subsidy regime which will come in on 1 October 2013 and 1 January 2014.

In summary, on 1 October 2013:

  • operators of bus services under tender to Transport for London (TfL) will no longer be able to claim Bus Service Operators Grant (BSOG) for these services - instead the Department for Transport (DfT) will pay a broadly equivalent amount of grant annually to TfL and the Greater London Authority
  • community transport (section 19) services which local councils operate in-house will no longer be eligible for BSOG - instead DfT will pay a fixed amount of grant annually to each of these councils
  • the eligibility rules will change, and certain types of service will no longer be eligible for BSOG - for more details see paragraph 1.31 of the Bus subsidy reform consultation analysis (PDF, 211KB)

Then, on 1 January 2014, operators of bus services under tender to local councils outside London will no longer be able to claim BSOG for these services; instead DfT will pay a broadly equivalent amount of grant to the local council which tendered these services.

Published 16 October 2013