News: Supertram announces it won't follow buses with £2 fare extension
Discounted fares on the Supertram network in South Yorkshire look unlikely to continue after the end of this month.
An extension to a £2 fare cap was announced recently by the government but it only relates to buses and the South Yorkshire Mayoral Combined Authority (SYMCA) is yet to announce any further financial support for trams.
Introducing a £2 fare in South Yorkshire (a so called "Mayor's Fare") two months ahead of a national fare cap on journeys "surpassed all expectations" with approaching two million journeys benefiting from the scheme. SYMCA initially set aside £600k as part of bold plans to combat the cost-of-living crisis.
The national scheme began on January 1 but South Yorkshire bus and tram fares have been capped at £2 since November 1. This was set to continue until the end of March 2023.
Last month the government announced plans to provide up to £75m so that bus operators can continue to cap single bus fares outside of London at £2 until the end of June, saving passengers money and encouraging more people back on the bus.
However, Stagecoach, the operator of the Supertam service in Sheffield and Rotherham, has confirmed that from April 1, the £2 single fare cap on tram tickets will end and all adult single fares will revert to their normal prices.
An update from Stagecoach said: "The national single fare cap is funded by Central Government, to allow all bus operators to cap the single fare at £2. The scheme for tram has been funded by the Mayoral Combined Authority, and this extension is ending after 31 March. This means the price of single tickets will revert to their current prices from 1 April."
It means that, short distance singles will be £2.20 and long distance single will be £3. following the January 2023 fare changes, the short distance return has increased from £3.40 to £3.70. Tram Only DayRiders are £5.00 and Tram Only MegaRiders are £18.00 but both can be bought for less on Stagecoach's app.
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The take up of the scheme in South Yorkshire has caused budget pressures at the combined authority with the budget for the scheme revised to £700,000, and then £1.1m. By the end of the eight-week scheme (November and December 2022) in South Yorkshire, nearly 1.9m trips were made across bus and tram at a total cost of £810,000. 22% were on the tram.
SYMCA estimates that it would cost £4.7m per year to keep the £2 fare in place. Modelling is underway on a potential increased fare cap (which would require less subsidy) or a single fare structure across the region.
It has been difficult to assess the scheme in South Yorkshire.
An increase in single fare sales has been offset by a reduction in the number of day and weekly tickets sold and measuring an uplift in overall patronage has been difficult given the time of year and Covid restrictions in previous years.
A report states: "The scheme has made (and continues to make) bus and tram travel cheaper for passengers and could be argued as being an effective targeting of subsidy for those that need it. Even though people clearly are benefiting from the scheme, they are likely travelling because they have to (for work) and that a more pronounced reduction in fares of itself would not generate significant patronage growth.
"Whilst the £2 fare cap has clearly been successful in saving passengers money during a cost-of-living crisis ... it is more difficult to demonstrate that such schemes are effective in driving modal shift. For this to be successful, any fares initiative (such as a fare cap, product range simplification, tap on/tap off schemes) need to be complemented by a bus service which is both punctual, reliable and competitive in terms of journey time."
The report adds that, without complimentary measures, a fares subsidy "is unlikely to be a cost-effective approach, unless (as for the Mayor’s fare) it is justified by cost-of-living benefits rather than for the purposes of modal shift and generating patronage growth."
The government has also extended Bus Recovery Grant (BRG) funding through to 30 June 2023 which gives SYMCA policy choices to consider on how it deploys its reserves to best services in the future. The extension of BRG is estimated to leave around £4.54m available from the £7.2m established for the protection of priority bus services.
A recent paper to SYMCA's transport board said that "There remains significant uncertainty as to what DfT [Department for Transport] will do in any further funding settlement beyond 30 June. In the absence of a long-term funding settlement for buses from government, it merely serves to delay the potential significant reduction in bus services when this funding expires."
SYMCA bosses want a longer-term (multi-year) funding settlement for bus to allow sustainable services to be put in place.
Cllr. Chris Read, Co-Chair of the SYMCA Transport and the Environment Board, said: “For many people across the region, public transport is a lifeline to work, to school, and to other services including hospital and doctors appointments. To make our buses sustainable in the long term they must be affordable, with fares that are simple enough for people to understand. That was the plan we agreed with the bus operators and that’s the plan I expect them to stick to. If we can’t make progress on that, it only strengthens the case for re-regulation across South Yorkshire.”
Richard Holden, Parliamentary Under-Secretary of State for Transport, said: "We are currently working on our plans for when BRG ends on 30 June 2023 and will continue to work with the bus sector, including bus operators and local transport authorities, on the challenges they face."
Images: SYMCA
An extension to a £2 fare cap was announced recently by the government but it only relates to buses and the South Yorkshire Mayoral Combined Authority (SYMCA) is yet to announce any further financial support for trams.
Introducing a £2 fare in South Yorkshire (a so called "Mayor's Fare") two months ahead of a national fare cap on journeys "surpassed all expectations" with approaching two million journeys benefiting from the scheme. SYMCA initially set aside £600k as part of bold plans to combat the cost-of-living crisis.
The national scheme began on January 1 but South Yorkshire bus and tram fares have been capped at £2 since November 1. This was set to continue until the end of March 2023.
Last month the government announced plans to provide up to £75m so that bus operators can continue to cap single bus fares outside of London at £2 until the end of June, saving passengers money and encouraging more people back on the bus.
However, Stagecoach, the operator of the Supertam service in Sheffield and Rotherham, has confirmed that from April 1, the £2 single fare cap on tram tickets will end and all adult single fares will revert to their normal prices.
An update from Stagecoach said: "The national single fare cap is funded by Central Government, to allow all bus operators to cap the single fare at £2. The scheme for tram has been funded by the Mayoral Combined Authority, and this extension is ending after 31 March. This means the price of single tickets will revert to their current prices from 1 April."
It means that, short distance singles will be £2.20 and long distance single will be £3. following the January 2023 fare changes, the short distance return has increased from £3.40 to £3.70. Tram Only DayRiders are £5.00 and Tram Only MegaRiders are £18.00 but both can be bought for less on Stagecoach's app.
Advertisement
The take up of the scheme in South Yorkshire has caused budget pressures at the combined authority with the budget for the scheme revised to £700,000, and then £1.1m. By the end of the eight-week scheme (November and December 2022) in South Yorkshire, nearly 1.9m trips were made across bus and tram at a total cost of £810,000. 22% were on the tram.
SYMCA estimates that it would cost £4.7m per year to keep the £2 fare in place. Modelling is underway on a potential increased fare cap (which would require less subsidy) or a single fare structure across the region.
It has been difficult to assess the scheme in South Yorkshire.
An increase in single fare sales has been offset by a reduction in the number of day and weekly tickets sold and measuring an uplift in overall patronage has been difficult given the time of year and Covid restrictions in previous years.
A report states: "The scheme has made (and continues to make) bus and tram travel cheaper for passengers and could be argued as being an effective targeting of subsidy for those that need it. Even though people clearly are benefiting from the scheme, they are likely travelling because they have to (for work) and that a more pronounced reduction in fares of itself would not generate significant patronage growth.
"Whilst the £2 fare cap has clearly been successful in saving passengers money during a cost-of-living crisis ... it is more difficult to demonstrate that such schemes are effective in driving modal shift. For this to be successful, any fares initiative (such as a fare cap, product range simplification, tap on/tap off schemes) need to be complemented by a bus service which is both punctual, reliable and competitive in terms of journey time."
The report adds that, without complimentary measures, a fares subsidy "is unlikely to be a cost-effective approach, unless (as for the Mayor’s fare) it is justified by cost-of-living benefits rather than for the purposes of modal shift and generating patronage growth."
A recent paper to SYMCA's transport board said that "There remains significant uncertainty as to what DfT [Department for Transport] will do in any further funding settlement beyond 30 June. In the absence of a long-term funding settlement for buses from government, it merely serves to delay the potential significant reduction in bus services when this funding expires."
SYMCA bosses want a longer-term (multi-year) funding settlement for bus to allow sustainable services to be put in place.
Cllr. Chris Read, Co-Chair of the SYMCA Transport and the Environment Board, said: “For many people across the region, public transport is a lifeline to work, to school, and to other services including hospital and doctors appointments. To make our buses sustainable in the long term they must be affordable, with fares that are simple enough for people to understand. That was the plan we agreed with the bus operators and that’s the plan I expect them to stick to. If we can’t make progress on that, it only strengthens the case for re-regulation across South Yorkshire.”
Richard Holden, Parliamentary Under-Secretary of State for Transport, said: "We are currently working on our plans for when BRG ends on 30 June 2023 and will continue to work with the bus sector, including bus operators and local transport authorities, on the challenges they face."
Images: SYMCA
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