Network Support Grant

NSG is a discretionary grant that subsidises both commercial and community bus operators by supporting Scotland’s bus network for the benefit of passengers, aiming to keep fares more affordable and networks more extensive than would otherwise be the case.

NSG is an annual grant that will be kept under regular review to ensure it remains in line with its strategic objectives.

It replaces the former Bus Service Operators’ Grant (BSOG), COVID-19 Support Grant (CSG) and COVID-19 Support Grant - Restart (CSG-R) all of which ceased on 31 March 2022, and operators no longer receive funding from any of those grants.

NSG Plus was temporary recovery funding in place from 1 April 2022 to 31 March 2023 only, with additional terms and conditions, which assisted operators’ recovery from the effects of the COVID 19 pandemic. NSG Plus has now ended and no further claims can be made.

NSG has been in place since 1 April 2022, and operators who run registered bus services can receive 4-weekly payments. Separate payment arrangements apply for Demand Responsive Transport (DRT), and Community Transport Organisations operating under a section 19 or section 22 permit.

The Network Support Grant Guidance provides more information about the grant and the terms for applying.

If you have any other queries please refer to our Frequently Asked Questions and if this does not answer your query, please email us at schemesandgrants@transport.gov.scot.

Eligibility

The Network Support Grant is payable to operators who are:

• operating a local bus service as defined in section 2 of the Transport Act 1985
• operating a community transport service under a Section 19 or 22 permit

and whose service(s) meet the further requirements detailed in the Bus Service Operators Grant (Scotland) Regulations 2002.

• demonstrate they are meeting Fair Work First criteria as set out below

Fair Work First

From 1 July 2023, recipients of public sector grants are required to evidence that they are meeting Fair Work First criteria which includes paying at least the real Living Wage and providing appropriate channels for effective workers' voice. View the Scottish Government guidance setting out further detail for grant recipients and organisations awarding public sector grants.

To apply for any Scottish Government grant (including NSG) for 2024-25, operators must demonstrate that they are meeting Fair Work First criteria.

The document linked below, the Fair Work First Operator Compliance Statement, provides further information and guidance, and asks questions which you will need to answer. This will enable us to determine whether your organisation is meeting the Fair Work First criteria, which has two mandatory principles: paying the real Living Wage and providing appropriate channels for effective workers’ voice. 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 document linked below. There is no exceptions process in place for meeting effective workers’ voice criteria as this is a mandatory condition.

Please complete the Fair Work First Operator Compliance Statement and submit it to schemesandgrants@transport.gov.scot.

If you have any queries or require further information please contact us at the email provided above.

---

Commercial bus operators

Commercial bus operators who run services under a public service vehicle (PSV) licence will be required to provide an annual estimate forecast for the financial year

1 April to 31 March, and based on that forecast will receive 13 four-weekly estimate payments. A certified claim for actual kilometres operated during that period must then be submitted at financial year end.

Should any material change occur during the claim year a revised estimate claim must be submitted to allow a recalculation of the grant entitlement and payment adjustments as required.

Advance estimate payments are conditional upon a certified claim being submitted within three months of the end of the claim year to which the estimate refers. Failure to submit a certified claim within the required timeframe will result in future estimate payments being withheld and recovery of previous estimate payments made.

NSG claims can be submitted for the current financial year and one year prior, providing sufficient records have been kept to support the details of the claim.

The current PSV claim forms can be found below:

---

If you wish to submit a claim retrospectively for 2022-2023, please contact us at schemesandgrants@transport.gov.scot

Section 19 and 22 Permit bus operators

Community Transport Organisations wishing to claim NSG under Section 19 or Section 22 of the Transport Act 1985 must complete a pre-registration eligibility checklist to register their intention to claim this grant and to confirm that the services operated meet the conditions of the grant.

Once the checklist is completed it should be returned with a copy of your permit(s) to schemesandgrants@transport.gov.scot your organisation will then be registered as a participant in this grant and the relevant certified claim form for you to submit your actual kilometres will be issued at the appropriate time.

If you operate a low carbon or low emission vehicle, you may be eligible for an additional payment providing your vehicle was in operation prior to April 2022 and you were receiving this incentive payment under the former BSOG. Further information is provided in the Network Support Grant Guidance.

Section 19 or Section 22 operators can claim once annually or twice yearly in arrears. Claims can be made for the current financial year and one year prior providing sufficient records have been kept to support the details of the claim.

If you claim annually you must submit a certified claim after 31 March, if you claim twice yearly you are required to submit two 6-monthly claims for the periods 1 April – 30 September and 1 October – 31 March.

Please remember it is important that claims are submitted as quickly as possible after the claim period ends. Transport Scotland will contact all operators to request claims and provide the relevant forms at the end of each period as required.

The current Section 19 and Section 22 claim forms can be found below:

---

If you wish to submit a claim retrospectively for 2022-2023, please contact us at schemesandgrants@transport.gov.scot

Summary outline Terms and Conditions

NSG is paid at 14.4 pence per kilometre. This is intended to contribute to the costs of running services. Outline terms and conditions include:

• provision of forecast service kms for the relevant financial year to Transport Scotland
• a commitment to consult with relevant local transport authorities on timetabling, paying special attention to those services which may support children to travel to school and that are required to minimise public transport connectivity disadvantages
• a commitment to respond positively and quickly to reasonable requests from local transport authorities to amend service patterns, hours of operation, vehicles used or levels of provision
• delivery of mitigations in line with any applicable public health guidance and rules and regulations, including in relation to COVID-19
• a commitment to communicate changes to services with the relevant local transport authority, Transport Scotland, and the public in a timely fashion.

Full terms and conditions can be found in the NSG Guidance.

If on reviewing the guidance and information provided you would like to participate in the Network Support Grant and require further assistance, please email us at schemesandgrants@transport.gov.scot

Any other questions or comments should also be directed to this mailbox.