The Government added £350 million to formula grant in 2006-07 to fund the improvement in the statutory minimum concession from half-fare to free local bus travel. It is providing £212 million in 2008-09, rising to £217 million in 2009-10 and £223 million in 2010-11 to pay for the further enhancement of the minimum concession to free off-peak travel on local buses anywhere in England. It is also paying authorities around £31 million this year to cover the cost of introducing new smartcard based concessionary travel passes.
The Government are confident that there is sufficient funding, in aggregate, to cover the cost of the statutory minimum concession.