The impact of high diesel costs on home-to-school (H2S) contract arrangements between operators and local authorities is increasingly severe, with no sign of fuel prices regaining their level from before the Middle East conflict.
Work by the Confederation of Passenger Transport (CPT) suggests that 38% of coach operators are likely to return H2S contracts under current circumstances. MacPhails Coaches director Martin MacPhail says that the Salsburgh operator will “stumble on” to the end of the academic year, and then decide on what is viable.
In some corners, calls have been make for authorities to pay a temporary enhancement to mitigate the crisis. Others in the H2S field point to a need to honour contractual terms, despite those potentially having been set some years ago.
CPT has called on the Department for Education for financial support, noting how H2S transport is at risk without assistance.
With expectations from some quarters that local authorities play a part in supporting contractors, routeone asked councils in England, Scotland and Wales about their positions on temporary uplifts.
Of those that replied, most ruled out any assistance, although some in Scotland and Wales cite devolved policy as an influence on their position. But the overall picture at a local level is difficult, making clear that with an occasional exception, governments will need to lead support if any is forthcoming.
Bidder beware if home-to-school contract support sought
In England, the almost universal response was that no help will be provided. Hampshire County Council notes that while contracts are awarded for a period of between one and six years. “we expect providers to build in potential price fluctuations when bidding.”
Its spokesperson acknowledges that while fuel is a consideration, the majority of running costs relate to vehicles and staffing, “and we are not currently considering any variations on the agreed contracts.”
Some others take a more nuanced view. Cheshire East Council has received “a small number” of requests for uplifts, “particularly [from] smaller companies and sole traders that are less able to hedge fuel costs.” Those have typically been at or below 5%, which is within the council’s expectation for annual contract inflation.
City of York Council and East Riding of Yorkshire Council say that no requests for temporary support have been received. Other authorities paid an inflation-linked increase earlier in 2026; some add that they continue to monitor the situation.
Westmorland and Furness Council is not offering an uplift currently, but it is part of Association of Transport Coordinating Officers (ATCO) lists and Department for Transport groups on H2S transport and is observing “any updates or queries from other authorities,” a spokesperson says.
Perhaps more positively, Wokingham Borough Council (WBC) has offered an uplift “for those suppliers that ask for it and can demonstrate that they need it,” a representative says. For taxi or minibus contracts, a formula factors in fuel price and consumption, mileage and number of journeys to give an individual figure.
For coach operators that do not hedge fuel, WBC may discuss on a case-by-case basis. In all instances, evidence will be required that the route cannot otherwise be operated without additional support.
Devolved nations take similar overall view to England
Devolved nations take a similar view. Scotland and Wales each have authorities that are categorically not offering uplifts. A handful in Scotland are monitoring increased Network Support Grant funding from Transport Scotland for public bus services, with one council noting how most of its H2S falls under that.
Others understand that the Convention of Scottish Local Authorities will discuss scope for an uplift to the school transport portion of the general revenue grant to assist H2S operators, including of closed-door services.
Annual inflationary uplifts are also cited as mitigatory measures, but only one authority – The Highland Council – outlined a process for operators to apply for temporary uplifts. As with WBC, each is assessed case-by-case.
Request for home-to-school contract support in Wales made
The situation in Wales echoes Scotland. One authority in West Wales notes that it simply lacks budget for any emergency uplifts.
“However, the council has worked with other Welsh local authorities to develop a business case seeking financial assistance from the Welsh Government, similar to the support package made available to H2S transport operators in 2022,” a spokesperson says.
“ATCO Wales, acting on behalf of Welsh local authorities, has submitted a formal request to the Welsh Government seeking support for transport operators. To date no decision has been communicated. The council remains hopeful that assistance will be forthcoming.”
In North Wales, Flintshire County Council (FCC) considered fuel and inflationary costs in May. It was agreed that where a H2S operator cannot reasonably continue to deliver within the original contract structure, FCC will adopt an open-book, case-by-case approach to better understand individual circumstances and cost pressures.
“Each case will be considered on its own merits. We will continue to work with operators to ensure contractual arrangements remain fair and sustainable for all parties,” a spokesperson concludes.
