£7m funding boost announced for Welsh bus services amid rising fuel costs

Nation.Cymru Staff

The Welsh Government has announced a £7 million funding package to help protect bus, school and community transport services across Wales from soaring fuel costs and prevent fare increases.

The temporary Bus Services Support Grant (BSSG) Plus scheme aims to help protect essential services in 2026-7 and will see £7m distributed through local authorities to operators.

Funded by the Welsh Government, the scheme will continue until the average price of diesel stays below 170p a litre for four consecutive weeks, the £7m is fully used, or at the end of the 2026-27 financial year, whichever comes first.

Deputy Minister for Transport, Mark Hooper, said: “We recognise the significant pressures that exceptional and sustained fuel costs are placing on bus, school and community transport services across Wales.

“These services provide vital connections for communities, helping people to access education, employment, healthcare and other essential services. We have been working closely with local authorities and the transport sector to understand the pressures they are facing and the potential impact on services.

“In response, we have developed BSSG Plus, a temporary and targeted package of support designed to help address exceptional fuel-cost pressures and protect essential services.”

“In the meantime, we continue to monitor fuel prices and work closely with the sector and local government.”

The Welsh Government again highlighted that the scheme is a temporary measure not a permanent increase, and funding will not be extended into 2027-28.

The scheme sits alongside an additional £3 million already allocated to bus services for 2026-27, bringing combined funding for the Bus Network Grant and Bus Services Support Grant to £71 million before BSSG Plus is considered.

A CPT Cymru statement following the announcement reads: “Coach and bus operators in Wales have been driven to the brink by soaring fuel costs, which have risen by as much as 45% since February.

“Some are considering scaling back operations or shutting down altogether. So this financial support from the Welsh Government is truly needed and will provide welcome relief.

“The money will help to safeguard thousands of journeys to school every day for children across Wales. School contracts tend to be let on a fixed price basis, with no adjustment for fuel prices, so many daily services for children have become unsustainable to coach operators this year.

“In a UK-wide survey last month, 41% of coach operators said they were looking at cutting back operations at the end of this year. This money will be an important first step in securing budgets for this year, and we hope that support will be reflected in next year’s budget too.

“It is vital that the Government acts nimbly and distributes the funds quickly. Many coach operators are small, family owned businesses who are managing cashflow on a week-to-week basis and need the funds urgently.”