Conditions of Eligibility (PSV360) for Bus Service Operators Grant

This information sheet contains a brief description of the Conditions of Eligibility for the Bus Service Operators Grant. This information sheet is for guidance only; full conditions of eligibility for Bus Service Operators' Grant are contained within the Bus Service Operators Grant (England) Regulations 2002 statutory instrument No. 2002/1015 (equivalent regulations are in place in Scotland and Wales) and are printed in full on the reverse of the estimated claim form (PSV310) and certified claim form (PSV311).

Conditions of eligibility

To qualify for rebate a bus service must be a local bus service or, in London, a service run under the London local service permit or exempt from the need to have such a licence.

Other conditions

Local services (other than schools services and those for elderly or disabled - see below) will qualify for rebate if:

A) at least half the accommodation on the vehicle by means of which the service is provided is normally available to members of the general public and the service is regularly used by such members;

B) the stopping arrangements are such that -

  • all the fixed stopping places (whether marked or otherwise generally recognised) are located where they are likely to be used with reasonable frequency by members of the general public, and
  • in any section of the area of operation of the service where there are no fixed stopping places, the arrangements for determining when and where passengers may be taken up and set down are such that members of the general public may take advantage of them with reasonable frequency;

C) members of the general public are able to make a single journey between two stopping places (to the extent that such journeys are provided for in the registered particulars having regard to boarding and alighting restrictions) upon payment of a fare that is not a deliberate deterrent to their use of their service,

  • in the case of a flexible service, the advanced booking arrangements are such that they do not act as a deterrent to members of the general public wishing to make a single journey which is otherwise provided for in the particulars of registration;

D) members of the general public are able to pay the fare at a place and in a manner that are not a deliberate deterrent to their use of the service;

E) there is not displayed on the vehicle by means of which the service is provided any sign or description intended or likely to convey the impression that the service is only available to a particular category of person;

F) arrangements are made which afford members of the general public a reasonable opportunity to inform themselves of the existence of the service, times of its operation and the places which it serves.

The above regulations reflect the introduction of new rules regarding demand responsive and flexibly routed services with effect from 23rd February 2004. Operators of local bus services in England may now claim Bus Service Operators' Grant for demand responsive and flexibly routed services provided they are registered with the relevant Traffic Area Office as such. These regulations were amended by the Bus Service Operators' Grant (Amendment) (England) Regulations 2004, Statutory Instrument 2004 No. 9.

Such routes may only be claimed for on a PSV311 certified claim form.

Similar arrangements have come into force in Wales with effect from 31st July 2004. This is stipulated by the Bus Service Operators' Grant (Wales) (Amendment) Regulations 2004, Welsh Statutory Instrument 2004 No. 1827 (W.203).

These arrangements do not apply in Scotland. Demand responsive and flexibly routed services do not qualify for Bus Service Operators' Grant in Scotland.

The main exceptions to these conditions are bus services provided or secured:

  1. by education authorities under section 509 of the Education Act 1996 or, in Scotland, section 51 of the Education (Scotland) Act 1980;
  2. for persons who are sixty years or older or who are disabled.

These services must meet conditions A to F except that:

  • they will qualify provided that some seats are available to the general public and the service is regularly used by the public;
  • the stopping places to or from which the service is mainly provided (for example, a school) need not be used by the public;
  • condition e. will not apply.

Other exceptions

Excursions and tours will not qualify for Bus Service Operators Grant ('excursion' or 'tour' means a service on which all the passengers travel together on a return journey).

Services using vehicles designed to carry eight people or less will qualify only if they satisfy all the conditions A to F and if the service is operated to a timetable.

Further information

If you require further information or if you think you are entitled to claim Bus Service Operators Grant for some or all of the local bus service(s) you are operating or intend to operate, please contact:

Department for Transport
Bus Service Operators Grant
F14 Ashdown House
Sedlescombe Road North
St Leonards on Sea
East Sussex
TN37 7GA

Tel: 0207 944 8588
Email: FDR@dft.gsi.gov.uk

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