Free travel benefits enjoyed by more than a million older Londoners are under threat from proposed Government changes to council income from parking charges, it can be revealed.
London Councils, the organisation that represents the 33 boroughs, warned there would be a “real danger” of being unable to fund the Freedom Pass and concessionary schemes for children with special educational needs and adult Londoners with disabilities.
Councils rely on income from parking charges and fines to cover the annual cost of the Freedom Pass, which allows older and disabled Londoners with free travel on the Tube, train and bus.
This year councils will contribute £188m towards the £292m cost of the Freedom Pass.
The cost of providing free travel is estimated to increase to more than £400m in the next three years and to top £500m by the end of the decade.
Transport Secretary Mark Harper wants to stop councils appearing to “profit” from motorists and has launched a consultation on whether any “surplus” from penalty charge notices should be returned to the Treasury, as already happens with speeding fines.
This would include fines issues for “moving traffic offences” such as stopping in a yellow box junction or ignoring banned turn signs.
But London Councils, in its response to the consultation, said: “Were government to remove the ability for authorities to make surpluses, or return surpluses to the Treasury… how would local authorities afford concessionary fares schemes?”
Abi Wood, chief executive of Age UK London, which has campaigned to save the Freedom Pass, said: “We are alarmed by the impact of these measures, which local councils say will put them under even greater pressure to reduce vital transport schemes including the Freedom Pass and London Taxicard service.
“In the capital, older Londoners are the fastest growing age group, and we know that affordable transport makes a profound difference to the quality of people’s lives.”
Last year, the number of penalty fines issued to drivers in London hit a record of almost 7.6 million, generating an estimated £400m.
This included more than three million £130 tickets issued to drivers who were caught on CCTV failing to obey road signs — such as driving through low traffic neighbourhoods or school streets.
Councils are currently under severe financial pressure, mainly because of the soaring cost of social care.
As a result, council tax bills rose by the maximum allowed of five per cent in April, meaning the average annual bill in more than a third of boroughs now exceeds £2,000.
London Councils said that if parking revenue was restricted, then the cost of providing travel benefits “would either need to be met directly by Central Government or there would need to be a significant scaling back of commitments”.
London Councils added: “By removing the generation and use of any surplus, there is a real danger that there would be a drastic reduction in investment for local transport initiatives and/or a real shortfall in other areas of council spend.”
A Department for Transport spokesperson said: “We’re on the side of drivers, which is why we want to take profit out of penalty notices, removing the incentive for over-zealous enforcement measures that treat drivers as ‘cash cows’.
“The funding for important travel schemes that people rely on should not be dependent on surpluses from unfair traffic enforcement measures, local authorities are responsible for funding these sustainably and responsibly and would be wise not to suggest otherwise.”
