Getting rid of free bus passes would cost economy £1.7 billion
09/09/2014
A study has show that removing free bus passes for disabled people and pensioners would actually cost the economy in excess of £1.7 billion a year.
The study, conducted by Greener Journeys, has found that every £1 spent on the government provided bus pass generates over £2.87 of benefits. This is through helping pensioners and disabled people to contribute more actively as volunteers, or helping them to stay more physically active and to feel less lonely and isolated, therefore decreasing poorer health and promoting well-being among older people.
The full Basic State Pension is currently £113.10 a week once you reach state pension age. Free bus passes can be worth up to £3,268 a year, which would become unattainable for pensioners if they did not have access to a free bus pass. This may then lead to pensioners having less access to key public services and miss out on social, environmental and economical benefits, such as being able to go to local shops or look after children.
Greener Journeys, who conducted the study, are a company made up of an alliance of UK bus and coach companies .They promote the potential of bus and coach travel to help drive economic growth, boost access to job markets, high streets and local services and reduce congestion and carbon emissions.
Claire Haigh, Chief Executive of Greener Journeys, said “Free bus passes enable many older people and people with disabilities to lead lives that are more active and fulfilling. We must be clear, however, that spending on such schemes gives good value for money to the taxpayer.”
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
UK pensions sector in serious trouble
Aside from the fact that UK public sector pension schemes are in disarray, and allegedly looking towards a £50 billion deficit, there are serious concerns about the rest of the UK population. A number of surveys over the last few months have highlighted the fact that only 50% of the UK population are actually making adequate pension fund contributions for their later life. But this is not the onl...
Read MoreFCA Quizzed on Post-RDR Advice Gap
The FCA is facing new questions about the availability of financial advice to the regular consumer, after an MP enquired about what the regulator plans to do to plug the advice gap. Questions were asked during a Treasury select committee related to the Heath Report, as well as the increasing number of people who say that they do not have access to financial advice since the RDR. Within the m...
Read MorePension fund deficits hit the headlines
A report by the Pension Protection Fund has shown that the largest 7,400 pension schemes in the UK with defined-benefit arrangements are now around £2.2 billion undercapitalised after a £300 million surplus situation in March. The massive turnaround from a small surplus to a massive shortfall is purely and simply because of the large fall in the UK stock market since election concerns began to h...
Read MoreNAPF calls on government to guarantee pension protection fund
The National Association of Pension Funds (NAPF) has today released a statement urging the UK government to guarantee the pension protection fund. This is the industry financed arrangement with funds used to compensate those who may have lost money in a failed pension fund or pension arrangement. The NAPF has also suggested the government needs to be more flexible regarding rules for pension schem...
Read MoreIs it fair to force retirement at 65 years of age?
As we covered in one of our earlier post, the EU authorities have upheld the UK government's statutory retirement age of 65. However, as UK stock markets continued to plummet and many pension pots show substantial reductions, is it really fair to force anyone to retire at 65 years of age and begin taking income from their pension arrangements?
When you consider that the UK stock mar...