Buses are the most frequently used mode of public transport in England. In 2003/4 official estimates put the total number of bus journeys at 4 billion, or 81 journeys per person per year. Usage is highest among teenagers and retirees, when car access is relatively low. Young people and pensioners have traditionally benefited from discounted or concessionary fares. However, since 2006 pensioners have been entitled to travel free of charge. The so-called ‘free bus passes’ have proved very popular with older people and have thus risen in political significance. As was promised during the 2010 election campaign, the current government has made only minor changes to the benefit despite unprecedented budget cuts in many other areas. In this article we consider the economic rationale behind providing free bus travel for older people.
What are the potential benefits?
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