Network Support Grant Uplift

The Network Support Grant Uplift is a temporary enhancement to the standard Network Support Grant (NSG), designed to support operators with ongoing fuel cost pressures while helping to maintain service levels and limit fare increases.

The Uplift enhancement will apply from 1 April 2026 (backdated) and is currently scheduled to run until 30 June 2026.

There are two uplift options available:

• NSG Universal Uplift – provides an additional 2.2 pence per live kilometre and is available to all operators who meet the standard NSG eligibility criteria

• NSG Targeted Uplift – includes the 2.2 pence uplift plus a further 7.2 pence per kilometre, available to operators who meet the standard NSG eligibility criteria; and can evidence average fuel costs of more than 130 pence per litre (excl. VAT) or equivalent energy costs for electric vehicles of more than 32.5 pence per kWh, across each 4-weekly payment period.

The base NSG rate remains at 14.4 pence per live kilometre and will continue to be paid to operators who participate in this grant in addition to the uplift.

If you do not currently claim NSG and wish to apply for standard and the additional Uplift grant, please contact us at schemesandgrants@transport.gov.scot

Key Conditions (apply to both grants)

Operators opting into either NSG Uplift Grant must comply with the following requirements:

• Service Levels - Maintain existing service levels and notify Transport Scotland where service reductions (including frequency reductions) exceed 10%

• Fare Changes - Fare increases must be capped at CPI (since March 2025) + 2.7%, equating to 6% from 1 April 2026, unless otherwise agreed with Transport Scotland (operators considering fare increases above the 6% cap are encouraged to engage with Transport Scotland to discuss their circumstances)

• Fair Work First - Compliance must be evidenced and fully approved before payments can be made

• Grant Award Letter – A new grant award letter must be signed and returned to schemesandgrants@transport.gov.scot

Additional Requirements for Targeted Uplift

For operators applying for the targeted uplift, supporting evidence must be provided for each 4-weekly claim period evidencing average fuel costs above 130 pence per litre (excl. VAT)

Acceptable evidence includes (but is not limited to):

• Fuel invoices or receipts
• Fuel card statements
• Bank statements (with sensitive details redacted)
• Where hedging arrangements are in place, evidence must reflect true net fuel costs, including reimbursements

If average fuel cost falls below 130 pence per litre in a given period, the targeted uplift will not apply for that period.

Thresholds apply for electric vehicles for charges above 32.5p per kWh (excl. VAT) and additional charges where supporting evidence can be provided.

To evidence electricity payment, this includes (but is not limited to):

• Utility bill
• Invoice

Electricity bills or invoices must clearly display the applicable electricity unit rate (e.g. cost per kWh) alongside usage.

If you have any alternative evidence documents you wish to submit, please discuss this with your Operator Account Manager before submitting your claim. 

Eligible Vehicles and Fuel Types

All vehicles including petrol, diesel and electric that meet the eligibility criteria for standard NSG are eligible for the Universal uplift.

All vehicles including petrol, diesel and electric that meet the eligibility criteria for Standard NSG can also be eligible for the Targeted uplift providing satisfactory evidence to confirm costs of more than 130 ppl (for fuelled vehicles) and more than 32.5 ppkWH (for electric vehicles) can be provided in support of your claim. 

Fair Work First Compliance

From 1 July 2023, recipients of public sector grants are required to evidence that they are compliant with Fair Work First principles which includes paying at least the real Living Wage and providing appropriate channels for effective workers' voice.

Operators must demonstrate that they are compliant with the Fair Work First criteria by completing the Fair Work First Operator Compliance Statement.

Operators currently claiming NSG who receive a grant payment of over £100K annually are required to provide additional evidence in relation to payment of the real Living Wage. If receiving this uplift means your payment will now exceed this threshold, you will have to provide this additional evidence. Your accounts team will discuss this with you if this is needed. 

There is an exceptions process which is only applicable to the payment of the real Living Wage, further information about this process is available in the compliance statement. There is no exceptions process in place for meeting effective workers’ voice criteria as this is a mandatory condition.

NSG Uplift Payments

Operators will be required to submit an uncertified claim for each 4-weekly payment period, evidencing the number of live actual kilometres operated. Operators claiming the targeted uplift must also submit supporting evidence of fuel costs for each 4-weekly payment period.

Payments for both uplift grants will be calculated based on actual kilometres delivered and made in arrears, with operators submitting uncertified claims to Transport Scotland every 4 weeks, and one certified claim at year end for PSV licence operators and twice yearly for Section 19 or Section 22 permit operators. Any overpayment made will be payable immediately, in full at the certified claim stage.

Payments will be subject to substantiating evidence on the average fuel rate paid being submitted with each 4 week claim.

How to Claim NSG Uplift

NSG Uplift claims should be submitted on the same claim form used for standard NSG. A copy of this claim form can be accessed below.

Please ensure you are completing version 1.9 of the form so your claim will successfully upload to our system and avoid any delays to your payments. The version can be found on the bottom right corner of the Applicants Details tab.

The new NSG Uplift Guidance tab contains all relevant information explaining how to claim this additional funding. There is also an information section at the top of each individual tab that provides details relevant to that area. 

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Fares Increases

Fare increases must be capped at CPI (since March 2025) + 2.7%, equating to 6% from 1 April 2026, unless otherwise agreed. Operators considering fare increases above the 6% cap are encouraged to engage with Transport Scotland to discuss this further. 

The Fares template below must be completed for any implemented or future planned fares increases above 6% effective from 1 April 2026 and should be provided as soon as possible preferably before any increases are implemented on your services. 

Completed Fares templates should be returned to our Policy team at nsguplift@transport.gov.scot

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Should you have any questions or concerns in regards to NSG Uplift, please contact us at schemesandgrants@transport.gov.scot