Latest news with #ReemIbrahim
Daily Mirror
7 hours ago
- Daily Mirror
'Free' bus and train scheme needs to be axed urgently says expert
Critics say the schemes are increasingly being used by well-off older workers, while younger people are left footing the bill through council tax and the congestion charge Free or cut-price travel for the over-60s is being questioned amid claims the perk is outdated, unfair and costing taxpayers an eye-watering half a billion pounds a year. More than 1.5 million Londoners currently enjoy free travel on buses, Tubes, trams and trains thanks to the 60+ Oyster Card and the Freedom Pass. But critics say the schemes are increasingly being used by well-off older workers, while younger people are left footing the bill through council tax and the congestion charge. Analysis by the Telegraph found the 60+ Oyster Card will cost Transport for London £135 million this year – more than double the £60 million it cost in 2016. That figure is expected to rocket to £185 million by 2027. Meanwhile, the Freedom Pass – which allows unlimited travel for over-66s and eligible disabled people – is already used by more than 900,000 people and costs £350 million a year. That cost is expected to hit £498 million by the end of the decade, with London's borough councils picking up the tab. This is well ahead of the cost of fare dodging across the network which is put at £130 million annually. Critics say the system is badly targeted and increasingly being abused. According to TfL, 60% of Oyster card holders aged 60-65 are still in paid work – and one in five use it to commute. That's despite the fact that workers in this age group earn an average of £42,000 a year – nearly double the £24,000 earned by people in their early twenties. Reem Ibrahim, from the Institute of Economic Affairs, said: 'It is difficult to justify a system where the wealthiest age group in the country is having their travel funded by taxpayers. 'The 60+ Oyster card and Freedom Pass schemes are financially unsustainable, and are not targeted to those genuinely in need of support. We urgently need a more targeted approach, rather than entrenching an unfair and costly system.' Liz Emerson, of the Intergenerational Foundation, added: 'At the very least, the Freedom Pass should be aligned with the state pension age. It's a perfect example of intergenerational unfairness at work with younger workers having to subsidise their older colleagues' free travel to work.' The 60+ Oyster Card was introduced by then-Mayor Boris Johnson in 2012. It is currently funded through Sadiq Khan's mayoral precept on council tax, along with money raised from the congestion charge. Once Londoners turn 66, they automatically qualify for the Freedom Pass. That £350 million cost is split between all 33 London boroughs – 28 of which were forced to hike council tax to the legal maximum of five per cent this year. The body running the Freedom Pass scheme has warned the £498 million forecast by 2029-30 is 'unsustainable'. Despite this, Khan has - so far - resisted pressure to scale back the schemes. During the pandemic, he banned the use of both the 60+ Oyster and Freedom Pass before 9am, generating £15 million in extra fares. But he later rejected a proposal to raise the qualifying age for the 60+ card by six months each year, which would have gradually phased it out to align with the Freedom Pass age. A spokesperson for Transport for London said: 'Both the Mayor and TfL are committed to making public transport in London as accessible, convenient, and affordable as possible. We regularly review our range of concessions to ensure that they continue to benefit Londoners, while also remaining affordable for TfL to operate.'
Daily Mail
2 days ago
- Business
- Daily Mail
Over-60s free travel costs taxpayers £100 MILLION more than fare dodgers
Free public transport for older Londoners is costing taxpayers around £500 million a year - £100 million more than fare dodgers. More than 1.5 million people aged 60 and above currently travel for free on London 's buses, Tubes, trains and trams thanks to two schemes: the 60+ Oyster Card for those aged 60 to 65, and the Freedom pass for those 66 and over. But with costs rapidly rising and many users still working, critics say the benefit is becoming 'difficult' to justify. Transport for London (TFL) is predicated to spend a staggering £135 million on the 60+ Oyster Card alone this year, up from £60 million in 2016 - and the figure is expected to hit £185 million by 2027. Meanwhile, the Freedom Pass costs London's boroughs another £350 million annually and could reach nearly £500 million by the end of the decade, as reported by The Telegraph. The hefty price tag has now sparked debate about whether these schemes are still fair - or sustainable. According to TfL, 60 per cent of those using the 60+ Oyster Card are still in work, and 20 per cent use it to commute. On average, Londoners aged 60 to 64 earn about £42,000 a year - nearly double the income of workers in their early twenties. Critics say this shows the benefit is going to people who don't necessarily need it. Reem Ibrahim, of the Institute of Economic Affairs, said: 'It is difficult to justify a system where the wealthiest age group in the country is having their travel funded by taxpayers. We urgently need a targeted approach.' Liz Emerson, chief executive of the research charity International Foundation, called it a 'perfect example of intergenerational unfairness,' with younger workers essentially footing the bill for their older colleagues' commutes. The Freedom Pass scheme is managed by the London boroughs, most of which raised council tax by the maximum 5 per cent this year. The body that it on behalf of the boroughs has warned the the scheme will soon become 'unsustainable.' The 60+ Oyster Card was introduced by then-Mayor Boris Johnson in 2012, and is funded through council tax and the congestion charge. Once users celebrate their 66th birthday, they automatically move onto the Freedom Pass - unless they have a disability, in which case they may qualify earlier. During the pandemic, Mayor Sadiq Khan paused the use of these passes before 9am to save money - a move that generated an extra £15 million in fares. However, he rejected a proposal to gradually raise the age limit for the 60+ card in line with the state pension age. A TfL spokesperson told the Telegraph: 'Both the Mayor and TfL are committed to making public transport in London as accessible, convenient, and affordable as possible. 'We regularly review our range of concessions to ensure that they continue to benefit Londoners, while also remaining affordable for TfL to operate.' It comes as a report released last Wednesday found fare evasion is becoming 'normalised', with train staff telling the inquiry that they are struggling to cope with 'aggressive' passengers who refuse to buy tickets. Travellers are using 'a range of techniques to persistently' underpay or avoid paying and see it as a 'victimless crime ', according to the Office of Road and Rail (ORR). It found fare evasion is a mounting problem now costing taxpayers £400million a year which is resulting in higher fares and less investment cash to improve services.
Yahoo
2 days ago
- Business
- Yahoo
Over-60s free travel costs taxpayers three times as much as fare dodgers
Providing free transport for over-60s in London is costing taxpayers £500m a year, prompting calls for the benefit to be scrapped. A rapidly ageing population means more than 1.5 million people now travel for free across London's buses, Tubes, trains and trams. They do so via the 60+ Oyster Card, for those aged between 60 and 65, and the Freedom Pass, available to those aged 66 and older. Telegraph analysis shows the 60+ Oyster Card alone will cost Transport for London (TfL) £135m this year, up from £60m in 2016. By 2027, costs are expected to reach £185m. The Freedom Pass, which now has more than 900,000 users, costs £350m a year – a bill that is forecast to reach £498m by the end of the decade. By comparison, traditional fare dodgers – such as those recently exposed by Tory MP Robert Jenrick for skipping barriers at Underground stations – cost the organisation £130m a year. According to TfL, the majority of 60+ Oyster card holders (60pc) are still in paid employment, and one in five use the free travel to get to and from work. This is despite the fact that those aged 60 and 64 earn an average salary of £42,000, double that of those aged between 20 and 24 at £24,000. Reem Ibrahim, of the Institute of Economic Affairs, said: 'It is difficult to justify a system where the wealthiest age group in the country is having their travel funded by taxpayers. 'The 60+ Oyster card and Freedom Pass schemes are financially unsustainable, and are not targeted to those genuinely in need of support. We urgently need a more targeted approach, rather than entrenching an unfair and costly system.' Liz Emerson, chief executive of the Intergenerational Foundation, a research charity, said: 'At the very least, the Freedom Pass should be aligned with the state pension age. 'It's a perfect example of intergenerational unfairness at work with younger workers having to subsidise their older colleagues free travel to work.' The 60+ Oyster Card was first introduced by then Mayor of London, Boris Johnson in 2012. It is funded by Sir Sadiq Khan's mayoral precept in council tax bills and the congestion charge – the daily fee for driving into central London. Once Londoners reach the age of 66, they continue to receive free travel in the form of a Freedom Pass, which is also provided to eligible disabled people regardless of age. This £350m bill is shouldered on to London's 33 boroughs – 28 of which increased council tax by the legal maximum of 5pc in April. The body that runs the scheme on behalf of the boroughs, has warned it will cost taxpayers £498m by 2029-30, a figure it described as 'unsustainable'. Sir Sadiq, 54, who is five years away from qualifying for free travel himself, banned the use of 60+ Oyster cards and the Freedom Pass before 9am during the pandemic. The move generated an extra £15m in fares. However, he rejected plans to increase the qualifying age for the 60+ Oyster card by six months a year for the next 12 years, allowing for it to be slowly phased out until it matched the qualifying age of the Freedom Pass. A spokesman for Transport for London said: 'Both the Mayor and TfL are committed to making public transport in London as accessible, convenient, and affordable as possible. 'We regularly review our range of concessions to ensure that they continue to benefit Londoners, while also remaining affordable for TfL to operate.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
2 days ago
- Business
- Telegraph
Over-60s free travel costs taxpayers three times as much as fare dodgers
Providing free transport for over-60s in London is costing taxpayers £500m a year, prompting calls for the benefit to be scrapped. A rapidly ageing population means more than 1.5 million people now travel for free across London's buses, Tubes, trains and trams. They do so via the 60+ Oyster Card, for those aged between 60 and 65, and the Freedom Pass, available to those aged 66 and older. Telegraph analysis shows the 60+ Oyster Card alone will cost Transport for London (TfL) £135m this year, up from £60m in 2016. By 2027, costs are expected to reach £185m. The Freedom Pass, which now has more than 900,000 users, costs £350m a year – a bill that is forecast to reach £498m by the end of the decade. By comparison, traditional fare dodgers – such as those recently exposed by Tory MP Robert Jenrick for skipping barriers at Underground stations – cost the organisation £130m a year. According to TfL, the majority of 60+ Oyster card holders (60pc) are still in paid employment, and one in five use the free travel to get to and from work. This is despite the fact that those aged 60 and 64 earn an average salary of £42,000, double that of those aged between 20 and 24 at £24,000. Reem Ibrahim, of the Institute of Economic Affairs, said: 'It is difficult to justify a system where the wealthiest age group in the country is having their travel funded by taxpayers. 'The 60+ Oyster card and Freedom Pass schemes are financially unsustainable, and are not targeted to those genuinely in need of support. We urgently need a more targeted approach, rather than entrenching an unfair and costly system.' Liz Emerson, chief executive of the Intergenerational Foundation, a research charity, said: 'At the very least, the Freedom Pass should be aligned with the state pension age. 'It's a perfect example of intergenerational unfairness at work with younger workers having to subsidise their older colleagues free travel to work.' The 60+ Oyster Card was first introduced by then Mayor of London, Boris Johnson in 2012. It is funded by Sir Sadiq Khan's mayoral precept in council tax bills and the congestion charge – the daily fee for driving into central London. Once Londoners reach the age of 66, they continue to receive free travel in the form of a Freedom Pass, which is also provided to eligible disabled people regardless of age. This £350m bill is shouldered on to London's 33 boroughs – 28 of which increased council tax by the legal maximum of 5pc in April. The body that runs the scheme on behalf of the boroughs, has warned it will cost taxpayers £498m by 2029-30, a figure it described as 'unsustainable'. Sir Sadiq, 54, who is five years away from qualifying for free travel himself, banned the use of 60+ Oyster cards and the Freedom Pass before 9am during the pandemic. The move generated an extra £15m in fares. However, he rejected plans to increase the qualifying age for the 60+ Oyster card by six months a year for the next 12 years, allowing for it to be slowly phased out until it matched the qualifying age of the Freedom Pass. A spokesman for Transport for London said: 'Both the Mayor and TfL are committed to making public transport in London as accessible, convenient, and affordable as possible. 'We regularly review our range of concessions to ensure that they continue to benefit Londoners, while also remaining affordable for TfL to operate.'
