Councils in England are being faced with a “completely unsustainable” annual bill to keep the free bus pass scheme running, a new study has said.

The Local Government Association (LGA), which conducted the research, warned that the cost is putting services at risk.

Councils in England are legally required to reimburse bus operators for journeys made by older and disabled people who use a pass entitling them to free off-peak travel.

The LGA said the total payments made across all councils were £452 million higher than the funding received from the Government in the last financial year.

Ahead of its annual conference in Bournemouth, Dorset next week, the LGA said the way the concessionary travel scheme is funded by Whitehall is unfit for purpose.

Andover Advertiser: The LGA has called the funding for the free bus pass scheme unfit for purposeThe LGA has called the funding for the free bus pass scheme unfit for purpose (Image: PA)

Free bus pass scheme 'not being adequately funded'

Part of the criticism for the underfunding from the LGA related to councils not being able to spend as much on discretionary bus services such as reduced fares and school transport.

LGA transport spokesperson Linda Taylor said: “The free bus pass is a lifeline for many in our communities. It allows many vulnerable residents to go shopping, pick up medication and attend doctors’ appointments.

“Our analysis shows that the scheme is not being adequately funded, leaving councils to try and find nearly half a billion pounds every year from their own overstretched budgets to keep it running. This is completely unsustainable.

“It is vital this scheme is properly funded so councils can protect bus routes and reinvest in local networks.

Andover Advertiser: The Government has said they will support bus services with hundreds of millions of poundsThe Government has said they will support bus services with hundreds of millions of pounds (Image: PA)

A Government spokesperson described the free bus pass as a "manifesto commitment" and they would support bus services "with an additional £300 million over two years to support services, and a further £200 million to continue capping bus fares until November 2024".

Meanwhile, the Department for Transport’s latest extension of the cap on bus fares comes into force today (Saturday, July 1) as part of the Government’s Help for Households initiative to provide cost of living support.

It was announced in May that single bus fares for many routes in England outside London would remain no more than £2 for a further four months from July 1.

The cap will rise to £2.50 from November 1 until the end of November 2024.