Travel concession schemes and reimbursement

Bus iStock 000003775433XSmall 146x219Clare Hardy reports on a recent judicial review of a decision by an integrated transport authority to reduce a reimbursement paid under its travel concession scheme.

In the case of R (on the application of Green Transport Company Ltd) v West Midlands Integrated Transport Authority and another [2013] All ER (D) 131 (Aug) an application for judicial review of a decision of an authority to reduce the reimbursement paid under its travel concession scheme for school children to a company that provided bus services for each journey by a school child was dismissed. 

The authority had made the reduction because it had concluded that the company included in its fares a special amenity element under section 96 of the Transport Act 1985. 

The authority had also argued that the company’s services were not eligible to be part of the scheme under section 94(4) of the Transport Act 1985, since to be eligible at least half of the bus accommodation normally had to be available for members of the general public. 

It was held:

  1. Section 96(5) of the Transport Act 1985 gave a passenger transport executive the power to exclude an operator from its travel concession scheme if it appeared to the responsible authority that fares charged included a special amenity element. The question as to whether there was such an element was for the passenger transport executive. Section 96(6) of the Transport Act 1985 required the passenger transport executive to conclude that a special amenity element appeared to be present where the fares were significantly high in relation to the general level of fares for comparable journeys. 
  2. Pass-holding school children were in a category differentiating them from the general public. It would be open to the authority to conclude that the company’s services were not eligible services for the scheme. The pass holders were the near exclusive occupiers of the seats, with an expectation which the company fulfilled that there would be a seat for them. 

Clare Hardy is an associate at Eversheds. She can be contacted on 0845 498 4355 or by This email address is being protected from spambots. You need JavaScript enabled to view it..