HIE concessionary bus passes and Low Income Support Scheme.

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A decision made (27/02/2008) regarding: HIE concessionary bus passes and Low Income Support Scheme.

Decision Reference: MD-T-2008-0015
Decision Summary Title :	HIE concessionary bus pass scheme		Date of Decision Summary:	20 February 2008
Decision Summary Author:	Caroline Anderson Director of Transport		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	HIE concessionary bus passes and Low Income Support Scheme		Date of Written Report:	20 February 2008
Written Report Author:	Caroline Anderson Director of Transport		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: HIE concessionary bus passes and Low Income Support Scheme
Decision(s): The Minister approved: The continuation of the HIE concessionary pass scheme, with a review in 2009, and checks undertaken with Social Security on the renewal of each card; and The introduction of pre-paid books of tickets to facilitate bus travel for those individuals who have difficulty in handling cash.
Reason(s) for Decision: The States debate on P145/2007 requested that a solution be found whereby previous HIE concessionary cardholders could continue to access free bus travel. Concerns have been raised with the phasing out of concessionary passes, that those people who have difficulty handling cash may be precluded from accessing the bus service.
Resource Implications: The budget for concessionary travel for HIE cardholders is already within the TTS cash limit. The cost of printing books of tickets can be met from within the budget.
Action required: Issue media release to ensure all current cardholders are aware of this transitional scheme. Advise H&SS and SS. Agree final scheme with Connex and arrange for books of tickets to be printed.
Signature:		Position:
Date Signed:		Date of Decision (If different from Date Signed):

HIE concessionary bus passes and Low Income Support Scheme.

TRANSPORT & TECHNICAL SERVICES

HIE CONCESSIONARY BUS PASSES AND LOW INCOME SUPPORT SCHEME

Purpose of the Report

To seek the Minister’s approval to proposals to allow current HIE recipients to continue to access free bus travel.

Background

Prior to the introduction of the Low Income Support Scheme, beneficiaries in receipt of HIE (Higher Insurance Exception) could claim concessionary travel on the Island’s bus network. It was assumed that this travel benefit would be subsumed into the LIS scheme but, in 2007, it came to light that, although LIS beneficiaries may be awarded a benefit which encompasses a transport element, the free bus travel had not been taken into account.

Deputy Martin lodged a Report and Proposition in September last year requesting, inter alia, the Minister for Transport and Technical Services to ensure current cardholders would receive free travel (P145/2007 refers). The debate on 22 November 2007 agreed that discussions would take place to ensure this would be continued.

Officers from TTS have discussed proposals with both Health and Social Services and Social Security and it has become clear that there are, in fact, two issues that need to be resolved:

How will current HIE cardholders be able to continue to access free bus travel and for how long?
How will individuals who may have trouble handling cash but are not currently in receipt of HIE manage to use the bus service?

It is estimated that the HIE concessionary fare scheme costs about £40,000 per annum and there are currently 439 cards issued, an increase of just over 100 since August last year, probably in response to the States decision to ensure the concessionary fares scheme continues for current cardholders.

Comments

Given the concern expressed in the States debate about current HIE beneficiaries and their ability to continue to access free bus travel, it is recommended that the current scheme continues with a review taking place in 2009. Social Security does not have a budget to provide this scheme and, although TTS can estimate the subsidy, it is not known for sure and the department would not wish to transfer this budget.

Most cards expire at some time during 2008 and it is suggested that, when these are renewed, TTS seeks confirmation from the Social Security Department that the individual is still in receipt of Low Income Support. In this way, it will be ensured that only people still receiving support will be able to receive free bus travel. This proposal will be finalised with Social Security in the near future.

For those individuals who may have problems handling cash, the ideal solution would be a smart card where money can be credited onto the card ahead of time and a swipe system reduces the balance whenever it is used. Although this is the longer term aim for bus, and probably other transport, payments, unfortunately it is not yet available. For this reason, it is proposed to use a system very similar to the school bus tickets whereby an individual can pre-purchase a book of tickets and simply hand a ticket to the bus driver. Discussions as to exactly how best this will work are ongoing with Connex but Health and Social Services are very supportive of this initiative. The tickets will be purchased at face value but any agency who considers their clients should receive such a benefit (eg Social Security, Health and Social Services), could purchase them to be passed on either free or at a discount. It is suggested that, initially, this scheme is open to clients identified by specific agencies but that, in the future, this could be open to anyone and create an alternative means of paying for the bus service.

It is hoped that these two proposals will not only mean that current HIE cardholders can continue to receive free bus travel but also, in future, anybody wishing to purchase tickets in advance for whatever reason will be able to do so.

There will be a cost to printing the books of tickets – school bus tickets currently cost £12.50 per 1,000 – but this should be met within existing budgets.

Recommendations

The Minister is recommended to approve:

The continuation of the HIE concessionary pass scheme, with a review in 2009, and checks undertaken with Social Security on the renewal of each card; and

The introduction of pre-paid books of tickets to facilitate bus travel for those individuals who have difficulty in handling cash.

Reasons for Recommendations

The States debate on P145/2007 requested that a solution be found whereby previous HIE concessionary cardholders could continue to access free bus travel.
Concerns have been raised with the phasing out of concessionary passes, that those people who have difficulty handling cash may be precluded from accessing the bus service.

Actions Required

Issue media release to ensure all current cardholders are aware of this transitional scheme.

Advise Health & Social Services and Social Security.

Agree final scheme with Connex and arrange for books of tickets to be printed.

Resource Implications

The budget for concessionary travel for HIE cardholders is already within the TTS cash limit. The cost of printing books of tickets can be met from within the budget.

Written by:	Caroline Anderson

Approved by:	John Richardson