The UK’s bus industry has successfully rebuilt its workforce and service network following post-pandemic driver shortages, putting it in a strong position to drive economic growth and social mobility, but with labour costs at a record high, continued support is needed to help the industry sustain and expand the essential services relied upon by millions says
the Confederation of Passenger Transport (CPT).
Analysis by the CPT has found that labour costs now account for 57.4% of bus operators’ total operating costs, the highest level recorded since the industry body’s Cost Monitor Report was first published. With driver wages making up the largest portion at 39.2%, and employer National Insurance contributions rising in April, costing operators approximately £800 more per driver, ongoing investment will be crucial to maintaining and growing services the CPT says, adding that every day, 11 million people rely on buses to access jobs, education, and local businesses. With the right government support, the trade body believes that the industry can continue to improve services, attract new passengers, and deliver a more efficient and sustainable transport network.
To unlock these opportunities, the CPT is encouraging the Government to partner with the industry on a long-term workforce strategy to ensure a strong pipeline of skilled drivers and a resilient network. It is also calling on the Chancellor to back the industry in the upcoming Spending Review to maximise the role of buses in driving economic activity and supporting communities.
Keith McNally, CPT’s Operations Director, said: “The bus industry has made great strides in rebuilding after the challenges of the past few years, ensuring that communities stay connected and businesses thrive. But with labour costs rising, government support will be key to helping operators go further, delivering more frequent, reliable, and accessible services for millions of people. We are keen to work with the Government on a workforce strategy to bring talent into the industry and keep costs under control.”
The CPT Cost Monitor Report is based on data from 55 bus operators across the UK, covering 20,778 peak vehicles. Operators provided statistics and cost data for a representative week in June 2024.
