Concessionary Bus Travel Bill [Lords]

I have been generous in giving way, and I am keen to make a little more progress. Our overriding principle is that the extra £250 million of funding should be directed to where the extra costs will fall, to ensure that we recognise passenger hotspots as far as we can. We are looking carefully at a number of funding options together with the Treasury and the Department for Communities and Local Government. We are discussing the options in detail with our concessionary fares working groups, which consist of representatives from all tiers of local government. We have met with Nexus, London councils, Transport for London and other key stakeholders. We hope to have taken a decision on the preferred funding route by the summer, and we intend to consult widely on our preferred formula for distribution. We recognise the importance of ensuring that operators receive fair payment for carrying concessionary passengers. Reimbursement will continue to be offered on a ““no better off, no worse off”” basis, so no operator should be disadvantaged. Operators can appeal if they believe that reimbursement is too low. We also want the power to simplify the administration of concessionary fares. There is a wide variety of concessionary travel schemes across the country, and 291 separate travel concession authorities, which means that some bus operators have to negotiate with many different authorities each year. There is therefore provision in the Bill to transfer reimbursement and administration powers to higher-tier local authorities or to the Secretary of State. That could improve efficiency and save money, but any such change would be subject to extensive consultation and indeed parliamentary scrutiny. It would not be made until after April 2008, so local authorities have plenty of time to prepare for it. We continue to work closely with local government, the bus industry and, of course, with groups representing older and disabled people. Concessionary travel is a devolved issue that has been raised by a number of hon. Members, but we want it to be possible in future for concessionaires—