The Department for Transport (DfT) has informed travel concession authorities (TCAs) in England outside London of its “strong preference” for them to maintain ENCTS reimbursement in the 2023/24 financial year at pre-pandemic levels.
DfT’s message accompanied publication of ENCTS guidance and a reimbursement calculator for that period. With ministerial approval, a further statutory instrument will soon be laid to continue suspension of the requirement that operators are no better off via ENCTS.
The current statutory instrument to that effect expires at the end of this financial year on 5 April 2023. While it notes an ultimate ambition for TCAs to “gradually transition” reimbursement back to a level reflecting actual usage, there is also an acknowledgement that “any sudden reduction” would have an adverse impact on service provision.
DfT has also underlined existing plans to launch a review of ENCTS, including the approach to reimbursement, in accordance with a pledge first made in the National Bus Strategy in March 2021.
The note to TCAs recognises that it is ultimately down to them to “determine the most appropriate method of continuing concessionary fares funding for the 2023/24 financial year,” although DfT would like to see it maintained at pre-pandemic levels “wherever possible.” An approach already adopted by some TCAs is to tie their reimbursement to the service level provided by operators as a percentage of pre-pandemic timetables.
DfT has made “no material changes” to the reimbursement guidance. The document thus maintains wording around the generation factor. One SME operator has expressed displeasure with that, noting that some in the sector had hoped for the generation factor to be dropped permanently in view of the slow return of concessionary patronage.
However, DfT adds in its note that no major alterations have been made because of that rate of concessionary return. “We believe [that] it is best to allow for this to settle before making any substantial changes to the guidance and calculator,” the Department says.
The review of ENCTS, which in addition to reimbursement will also examine the guidance behind it, is expected to lead to “significant updates” to both. No hints have been given as to what those may be. Subject to completion of that work – which will involve consultation with TCAs – DfT expects to publish the changes in its November 2023 ENCTS update ahead of the 2024/25 financial year.
