Proposal Three: To make discretionary transport more viable by asking parents to increase their financial contribution to the cost of the transport

What is the current situation?

Where a student does not have statutory entitlement to School Transport, they can appeal or ask for discretion to be applied. This can result in a decision to award them transport on a discretionary (non-statutory) basis.

Local authorities are allowed to request a parental contribution for this discretionary transport. The current rate ranges from £808.25 per year (for journeys up to five miles), up to £1,791.62 per year (for journeys over ten miles).

The rate of contribution is currently reviewed annually in September and charges are adjusted in line with the March Consumer Price Index (CPI).

If the student’s parents are in receipt of certain benefits, or the family is in receipt of free school meals, or there are other exceptional circumstances as determined by the School Transport Service, the parents/family are not currently required to pay the contribution.

What is being proposed?

The current approximate average contribution is 15% of costs, and we are proposing increasing this to 30%. Therefore, Hampshire County Council would still be providing a subsidy on average of around 70% of the costs of travel.

Reason for this proposal

Until a sustainable long-term national funding solution can be found to address the intense financial pressures facing not only Hampshire County Council, but also wider local government, the County Council has no choice but to consider changing or reducing services in some areas and propose options for savings.

It is anticipated that this change would eventually contribute around £5,000 per year towards addressing the County Council’s overall anticipated remaining £97.6 million budget deficit from April 2025.

An increase in the contribution amount would mean that a higher proportion of the actual cost of the discretionary transport would be paid by families, reducing the proportion that is funded by the County Council.

How would the proposal be implemented?

If this proposal is agreed, new discretionary transport would be subject to the new proposed contribution rate from that point.

Potential impacts

This proposal would apply to both School Transport and Post-16 Transport users.

Should this change be approved, families who are granted discretionary transport would see an increase in the amount they are asked to pay. We think this would affect around 60 passengers each year, out of circa 14,000 passengers.

Charging a higher rate for discretionary transport arrangements could disproportionately impact families with a lower income who would be less able to afford higher contribution rates.

Exceptional cases and the right to appeal

If a compulsory school age student’s parents are in receipt of certain benefits, or the family is in receipt of free school meals, parents/family would not be required to pay the contribution.

In other exceptional circumstances, the School Transport service would retain the option to require a reduced contribution or not require a contribution at all.

There is an existing mechanism in place for the School Transport service to consider whether in exceptional cases transport can be granted as an exception to policy. There is also a statutory right to appeal for any family who wishes to challenge a transport entitlement decision.

This right of appeal covers decisions on whether a child is entitled to transport, and on the form of assistance offered.