Crisis talks loom over Freedom Pass

Published: 15 October, 2010
by TERRY MESSENGER

CHAMPIONS of the Freedom Pass in Islington were horrified this week by Tory proposals to take the benefit away from the better off and charge poorer pensioners an annual fee to receive it.

Leading London Conservative Colin Smith told the Tribune the Freedom Pass “was becoming an increasing burden” on tax­payers at a time of severe budgetary res­traint. His concern was prompted by the rising cost faced by London’s 32 boroughs for the pass which allows older people to travel free on trains and buses. 

Councillor Smith, from Bromley, asked: “Can money be saved from the Freedom Pass budget rather than seeking money from the taxpayer?”

Economies suggested by Cllr Smith were:

• limiting the pass to poorer pensioners;
• an annual “administration fee” for the pass;
• and banning its use in peak times.

The boroughs’ umbrella organisation the London Councils (LC), is faced with a £302million bill for the pass from Conservative-controlled Transport for London in the next year financial year – up by £22m since TfL pulled out of a deal to cap the cost.

Pressure is now coming from Conservatives in the LC to scale back the benefit to save money. They would need to persuade Parliament to legislate in order to means test or charge for the pass. 

But power to determine the hours during which the pass is valid lies with the LC.

Islington Labour council leader Catherine West will be squaring up to Cllr Smith over the issue on the LC transport and environment committee. She chairs the committee which Labour rules with 18 seats to the Conservatives’ 12 and the Liberal Democrats’ two.

London Councils is legally obliged to find the total cost of the Freedom Pass – even if it means cutting back on other services.

Cllr West is due to meet Conservative Mayor of London Boris Johnson in an attempt to win a better deal for the LC in the run-up to a final settlement in December.

The deal will run for one financial year only – 2011/12 – and will need to be renegotiated next year.

She fears that if TfL ratchet up the price each year, pressure from Conservatives on the councils, in City Hall and at Westminster will mount. 

She said: “There are certain things which make for a civilised soc­iety and the Freedom Pass is one of them. Once you start chipping away at them – offering it to some but not to others – you lose the social compact which underpins them.”

George Durack, chairman of Islington Pensioners Forum, described Cllr Smith’s proposals as “total rubbish”.

But Cllr Smith argued:  “Does it make sense to have wealthy businessmen and business ladies travelling to the City to work every day courtesy of the taxpayer? 

“You may have the less well off family effectively supporting them through council tax. Is there a case for an annual administration charge of £25?

“I do also query whether the scope of it has gone too far and whether the previous limitations on its use in peak times might be re-instated.” 

He stressed that such proposals would be des­igned to guarantee “the long term sustainability of a valued service”.

Cllr West argued that means testing the benefit to exclude the better off would cost as much in administration charges as would be saved. And she said many pensioners needed to travel in peak times to attend hospital appointments.

George Durack added:  “I have no objection to the well to do paying more – that’s right and proper. But they should do so through their tax. Then we can retain the Freedom Pass as a universal benefit which everybody supports.”