Content

Historically, the Council has had a Concessionary Travel service
level agreement in place with FACT Community Transport whereby FDC
funds 50% of the fare for Dial a Ride journeys on FACT Community
Transport minibuses for members of FACT up to a capped budget of
£50,000. The Council intends to enter into a Concessionary
Travel Service Level Agreement (SLA) for the 2024-25 financial year
which is prepared on the same basis. 
During the
period when the UK was subject to restrictions linked to Covid-19
FACT experienced a reduction in demand for its Dial a Ride
services. Recognising that many of its members were reluctant or
unable to travel FACT varied its services to deliver shopping to
FACT members who had previously used its buses to travel to local
shops. The Council agreed two decision notices in November 2020 and
August 2021. These notices enabled payments to be made to FACT over
and above the terms of the SLA on the following basis:

(i)   
to cover the cost of providing a shopping service
for local residents whereby essential food and medicine supplies
are delivered to residents’ homes; and
(ii)   
to cover the additional costs borne by FACT, not
reflected in the normal operating budget, which arose due to FACT
being required to reduce the number of passengers using its
vehicles at any one time. Such reductions reduced the income FACT
could draw down from the Council as, under the original SLA, income
is based on a ‘fares foregone’ principle which is
determined based on the number of passengers entitled to
concessionary travel.
 
Payment
made under the terms of the revised SLA were subject to a clawback
principle which would be applied if financial information provided
by FACT indicated that the payments made to FACT by the Council
exceeded the cost FACT had incurred in delivering the services
referred to at (i) and (ii)
above.
Central
government has recognised the significant contribution that
effective and efficient provision of bus services could make to its
levelling-up agenda. Against this backdrop, the Department for
Transport (‘DfT’) publication Covid-19 Recovery Guidance: Concessionary Fares
Funding (‘the guidance’)
acknowledges that if existing transport operators are not
adequately supported the ability of government to achieve broader
policy objectives in the medium-term through providing funding for
enhanced public transport might be impeded. This is because if
patronage levels do not return to pre Covid 19 levels quickly,
without adequate financial support, pre Covid-19 services are at
risk of being withdrawn, curtailed and ultimately bus operators may
exit the market.
Fenland
District Council is not bound by the guidance which is aimed at
Local Transport Authorities (‘LTAs’). In Cambridgeshire
the Cambridgeshire and Peterborough Combined Authority (‘the
CPCA’) is the statutory LTA. The funding FACT receives from
the CPCA will be determined by reference to the guidance. The
Council is satisfied that using this guidance provides a fair and
transparent method to determine amounts payable to FACT recognising
that challenges associated with recovering from Covid 19 identified
by the DfT will apply to FACT.
The
current DfT guidance indicates the proportion of pre-covid funding
that should be paid over to concessionary transport officers is at
65%. Fenland District Council have determined that it is reasonable
to use this figure for the entire 2024-25 financial
year.
Pre-Covid
concessionary travel payments are to be determined based on the
highest monthly amount in the three financial years prior to the
pandemic, i.e., 2017/18, 2018/19, 2020/21. This provides for the
following payment levels:

Month

Highest Pre Covid 19 Support (£)

DFT
%

2024/25 FDC Payment Due (£)

April

4,482

65

2,913

May

5,038

65

3,275

June

4,791

65

3,114

July

4,454

65

2,895

August

4,773

65

3,103

September

4,689

65

3,048

October

4,736

65

3,078

November

5,073

65

3,298

December

3,646

65

2,370

January

4,216

65

2,740

February

3,993

65

2,595

March*

4,188

65

2,722

 

 

TOTAL

£35,151

*March
figures adjusted to reflect actual patronage levels and not amount
paid by Fenland DC as this was adjusted in 2017/18 and 2018/19 to
ensure the budgetary cap of £50,000 was not
exceeded.
The Council has determined that
making payments on the basis set out above strikes an appropriate
balance providing financial security to FACT whilst encouraging it
to review its service provision and engage with its membership to
ensure it is able to draw down the income it requires to ensure its
services are sustainable.
 
Portfolio Holder’s Decision
 
Councillor Laws, Cabinet Member and Portfolio Holder for
Planning and Flooding is requested to consider and approve the
following proposals effective for the 2024-25 financial
year:
 

1.  To authorise officers
to enter into a side agreement to operate alongside the 2024/25
Service Level Agreement enabling the Council to make payments to
FACT in line with guidance published in October 2021 by the
Department of Transport entitled Covid-19 Recovery Guidance:
Concessionary Fares Funding.

2.  To authorise officers
to pay FACT a fee calculated with reference to the side agreement
which shall not exceed £50,000 for the period 1 April 2024
– 31 March 2025. This provision shall apply for so long as
the aforementioned Department of Transport guidance remains in
place and is not otherwise superseded or revoked. A new decision
notice shall be produced and approved by the cabinet Member and
Portfolio Holder for Planning and Flooding if the guidance
changes.

3.  To authorise officers
to clawback the value of any overpayment against payments made
where, following appropriate post-payment assurance work, it is
determined that the payment described at paragraph 2 above exceeds
the value of the operational running costs for the
period.