Free bus passes for over-60s cost £12m

Free bus passes for pensioners in the West Midlands are costing £12.6 million a year, the Express & Star can reveal.

But passenger transport authority Centro today said that the cash, a central Government subsidy, is covering charges made by bus firms for free travel, after councils in other areas complained that handouts were not covering costs.

The Local Government Association commissioned a private company to carry out a survey that concluded free bus passes for the over-60s were an "inefficient" use of public funds.

The passes were introduced by the Government in 2008, but many councils – particularly those from scenic areas which attract a high volume of day trippers – say the funding arrangements leave them out of pocket.

Centro spokesman Steve Swingler said: "The half a million pass holders in the West Midlands have certainly not been slow to take advantage of not only the free bus travel that it offers across our region and the rest of England but also the free Metro and train travel within the Centro area.

"However, while some areas of the country have expressed concern over the level of reimbursement they have been given for the scheme, the level received here in the West Midlands has been satisfactory."

Councils in other regions have said they do not have enough funds to pay bus companies for the free travel as the payment from central Government is based on the number of people with passes from the local area.

The study by the consultancy Oxera for the Local Government Association says councils would be better off using means testing to target those who are most in need.

Councillor Bill Thomas, leader of Sandwell Council, said he would oppose any plans to introduce means testing. He said: "I want to assure senior citizens that Sandwell Council completely rejects any proposal to introduce this scheme."