Councils had to spend nearly half a billion pounds last year to plug a shortfall in funding for free bus passes.
This was at the expense of lower fares and other transport services – such as free peak travel, community transport services, reduced fares and school transport – which could have helped more people into work and increased growth.
According to LGA analysis, an estimated £452 million came from councils’ already overstretched budgets to meet the cost of the passes, which provide older and disabled people with free off-peak travel on all local bus services.
Councils in England are legally obligated to administer the national scheme and are responsible for reimbursing bus operators for journeys made by those with a pass.
Cllr Adam Hug, LGA Transport Spokesperson, said: “Free bus passes provide a vital lifeline for many in our communities, allowing vulnerable residents to go shopping, visit family and friends, and attend appointments. Councils want to keep this scheme running, but cannot keep finding nearly half a billion pounds a year from their overstretched budgets to make up the shortfall – money that could be used to help other people in need to get to work or college.
“By using the Spending Review to plug this gap and give councils the long-term funding they need, we can help government meet its objectives of breaking down barriers to employment and opportunity, while boosting inclusive economic growth.”