Midlothian councillors warn bus pass funding gap could threaten local services

Thursday November 5th 2026

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Midlothian Council is being urged to take a stand against what Midlothian Labour councillors call a “funding scandal” at the heart of Scotland’s free bus passes.

A motion from Labour Councillor Derek Milligan, seconded by Councillor Russell Imrie, highlights that the Scottish Government reimburses bus operators for only part of the cost of its concession schemes for young people, older people, and disabled people.

The councillors argue that the current system forces operators to absorb the losses, with local communities then paying the price through cuts to services. Scottish Government figures show that for 2025/26 operators get reimbursed:

Concession Category  Actual Fare Scottish Government Pays
Aged Over 60 plus £2.40 £1.27
Disabled Person  £2.40 £1.27
Youth Aged 5-15  £1.20 £1.15
Youth Aged 16-21 £2.40 £1.74

The motion makes clear that while free bus travel for older people, disabled passengers and young people enjoys widespread support, the Scottish Government is failing to fully fund the policy. As a result, operators receive significantly less than the actual fare for many journeys, leaving routes that appear busy and well-used operating at a loss.

It calls on the Scottish Government to undertake an urgent review of concessionary fare reimbursement, engage directly with bus operators and local authorities and introduce a funding model that protects local routes from further reductions.

Councillor Derek Milligan said:

“We now know why the very busy 46-bus service was withdrawn because a high percentage of the 46 Roswell to Musselburgh bus passengers are bus pass holders.

“The Scottish Government likes to boast about free bus travel, but it is failing to properly pay for it. The reality is that bus operators are being asked to deliver government policy while being left out of pocket.”

“Communities across Midlothian are already seeing services cut back and there is a real danger that further routes will disappear if ministers continue to ignore the problem.”

“It is simply unacceptable that a passenger paying £2.40 for a journey generates only £1.27 in reimbursement when using a concessionary pass. That funding gap has to be made up somewhere, and increasingly it is being made up through service reductions, route withdrawals and diminished connectivity for local communities.”

“The SNP Government cannot continue to champion free bus travel with one hand while starving the bus network of funding with the other.”

The motion highlights that England operates concessionary travel funding on a “no better, no worse off” principle, ensuring operators are not financially disadvantaged by carrying concessionary passengers. Councillors argue that Scotland is failing to meet that standard.
Councillor Russell Imrie said:

“When a bus service is cut, it is not ministers in Edinburgh who suffer the consequences. It is the over 60s trying to get to a hospital appointment, the apprentice travelling to work, the student getting to college and the family without access to a car.”

“For many people, the local bus service is not optional. It is their connection to jobs, education, healthcare and everyday life.”

“The Scottish Government has created a situation where communities are being punished because it refuses to adequately fund its own schemes. That is neither fair nor sustainable.”

“If ministers are serious about tackling inequality, supporting rural communities and reducing car dependency, they must ensure bus operators receive fair reimbursement, and they must do it now.”

Councillors backing the motion warn that without immediate action, more communities could find themselves increasingly isolated as operators are forced to make difficult decisions about the long-term viability of local services.

“Free bus travel should not come at the cost of losing bus services altogether,” Councillor Milligan added.

“If the Scottish Government wants these schemes to succeed, it must pay the full cost of delivering them. Midlothian residents deserve better than managed decline.”

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