Scottish Ministers have confirmed funding caps and reimbursement rates for Scotland’s national bus concession schemes for 2026/27, following parliamentary approval of the draft Order on 4 March 2026. The measures cover the financial year beginning 1 April 2026 and set both the ceiling for payments and the percentage rates used to reimburse operators per eligible journey. (parliament.scot)
For the Older and Disabled Persons scheme, the capped funding level is set at £248.2 million for 2026/27, with a reimbursement rate of 53% of the adult single fare. The Net Zero, Energy and Transport Committee record this as a small adjustment from 52.9% in 2024/25. (parliament.scot)
For the Young Persons scheme, Ministers have set a funding cap of £220.6 million for 2026/27. Operator reimbursement is 48.1% for eligible journeys made by those aged 5 to 15 and 72.5% for those aged 16 to 21, calculated as a proportion of the adult single fare. (parliament.scot)
The Order also ties reimbursement to the schemes’ annual caps: payments must be made at the specified rates within each cap, and once a cap is reached no further sums are paid to any operator for that year. Notably, 2026/27 is the first year the Young Persons scheme has a payment cap. (parliament.scot)
In operational terms, bus operators carry concessionary passengers free at the point of use and claim reimbursement from the Scottish Government at the published percentage of the adult single fare for each eligible journey. Ministers told MSPs the model aims to leave operators “no better and no worse off”, with rates adjusted accordingly. (parliament.scot)
The legal basis sits in sections 40 and 52 of the Transport (Scotland) Act 2005, which allow Ministers to set concession rates and operator payments by order under the affirmative procedure. The Order was laid on 15 January 2026, scrutinised by the Net Zero, Energy and Transport Committee, and then agreed by the Parliament. (legislation.gov.uk)
During scrutiny, Members queried the difference of around £4 million between the combined cap totals and the higher 2026/27 budget line for concessionary travel. Officials advised the variance reflects operational costs of administering the schemes rather than reimbursement to operators, with a fuller breakdown to follow. (parliament.scot)
For passengers, entitlements are unchanged by this instrument; it adjusts funding caps and reimbursement rates rather than eligibility rules in the underlying 2006 and 2021 Orders. For operators and transport teams, the caps define the cash envelope for 2026/27 claims and should be treated as binding when profiling in‑year revenue, given that no payments are made once a cap is reached. (parliament.scot)