Free or discounted travel for over-60s is under scrutiny, with critics arguing that the benefit is outdated, unfair and costing taxpayers half a billion pounds annually. Currently, more than 1.5 million Londoners enjoy free travel on buses, Tubes, trams and trains courtesy of the 60+ Oyster Card and the Freedom Pass.
However, detractors argue that these schemes are increasingly being exploited by affluent older workers, leaving younger people to bear the cost through council tax and congestion charges. The Telegraph’s analysis revealed that the 60+ Oyster Card will cost Transport for London £135 million this year, more than double the £60 million it cost in 2016, with projections suggesting this figure could soar to £185 million by 2027.
In contrast, the Freedom Pass, which offers unlimited travel for those over 66 and eligible disabled people, is currently used by more than 900,000 people and costs £350 million annually. This expense is predicted to reach £498 million by the end of the decade, with London’s borough councils footing the bill.
This far exceeds the cost of fare evasion across the network, estimated at £130 million per year. Critics argue that the system is poorly targeted and increasingly abused. According to TfL, 60% of Oyster card holders aged between 60-65 are still employed, with one in five using it for commuting.
This is despite the fact that workers in this age group earn an average of £42,000 annually, nearly double the £24,000 earned by Brits in their early twenties. Reem Ibrahim, of the Institute of Economic Affairs, called into question the financial logic behind certain travel perks for seniors: “It is difficult to justify a system where the wealthiest age group in the country is having their travel funded by taxpayers.”
60+ Oyster Card and Freedom Pass ‘unfair’
She criticised schemes like the 60+ Oyster card and Freedom Pass as burdens on the public purse, saying: “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 from the Intergenerational Foundation also suggested revisions to align with pensioner benefits. She said: “At the very least, the Freedom Pass should be aligned with the state pension age.”
She highlighted the impact on younger people, arguing that current policies exacerbate generational inequalities, saying: “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, launched in 2012 by Boris Johnson during his tenure as mayor, draws funds from various sources including Sadiq Khan’s mayoral council tax precept alongside congestion charge revenues.
After reaching the age of 66, London residents become automatically eligible for the Freedom Pass, which comes with a significant price tag partly covered by all 33 London boroughs – 28 of which faced the need to raise council tax up to the legal limit of five per cent this year due to the £350 million cost.
There’s growing concern that the projected £498 million needed by 2029-30 for the Freedom Pass scheme is leading towards an untenable financial situation. Despite facing pressure, Khan has steadfastly refused to dial back the controversial measures. In a bid at fiscal recovery during the pandemic, he infamously restricted access to the 60+ Oyster and Freedom Pass ahead of the morning rush hour, resulting in an additional £15 million gleaned from fares.
Nonetheless, he snubbed a suggestion to incrementally increase the eligibility age for the 60+ Oyster to match that of the Freedom Pass. Transport for London’s spokesperson expressed the following: “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.”
