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.