Summary

Concessionary fares offer certain sections of the population the opportunity to travel on public transport at a reduced fare, which in some cases can mean free travel. The groups eligible for conces si onary fares differ between local authority areas and countries and are subject to varying levels of fare discount. In some countries conces si onary fares are legally binding upon public transport operators and public funding bodies ( UK – Transport Act, 2000). In other countries such schemes are voluntary and will differ between local authority areas.

The main objective of a concessionary scheme is to help overcome one of the key causes of social exclu si on namely low incomes. As such the overwhelming majority of conces si onary fares are applicable to the elderly, the disabl ed , those in full time ed ucation (under the age of 18) and those receiving social ben efit payments (e.g. the unemploy ed ). By providing discount ed fares for these target ed groups it is hop ed that they will be able to afford public transport and so enjoy an improvement in their access to travel opportunities.

Public transport operators who allow passengers to travel at concessionary fares are reimbursed the difference between the normal fare and the discounted fare by either local authorities or the relevant transit authority. This can often cause disputes between the two sides because the number of passengers travelling on concessionary fares cannot always be calculated accurately. Many schemes rely on a pre-agreed formula based on surveys that sample bus users and the ticket types/fares they are travelling on. In an effort to overcome this a number of concessionary fare schemes in the UK (e.g. Hertfordshire council) have implemented a smart card pass that automatically records the numbers of concessionary fare passengers and the fares they pay.

Concessionary fares can help to increase the usage of public transport, mainly buses, by reducing the generalised cost of public transport and so encouraging private transport users to change modes. Equally as important is the generation of addition trips particularly by those whose access to public transport was previously limited due to financial reasons.

Statistics however would appear to suggest that, among the elderly in the UK at least, affordability and access are becoming less of an issue. Between 1998 and 2000, 98% of pen si oners in Great Britain had some form of conces si onary fare available to them. The take up rate for such schemes was only 48%, a 12% fall from the 1989-1991 period when 60% of those schemes were ta ken up (CfIT, 2003). This reflects the upward trend in car use and driver licence holding that has been experienc ed amongst older people in recent years. Take up in areas was highest in London (81%) and lowest in rural areas (29%) where dependence on cars is higher and there are few bus services.

Adopting conces si onary fares may lead to an uptake in the usage of public transport however this increase is unlikely to lead to an increase in the current bus services and buses requirements to run the timetable. The majority of conces si onary journeys are underta ken during the off-peak (because of cost and the types of journeys underta ken by the elderly) and the majority of bus operators have plenty of spare capacity during this period to cater for any upturn in demand. If there was excess demand the choice of whether to increase the service is a deci si on, in the UK at least, for the bus operators to make. If such services were profitable then it is likely the operator would introduce them. The operator might even tailor the bus type to suit the elderly by introducing low floor buses to make boarding and alighting easier.