Network Support Grant Terms and Conditions

Under NSG, Operators receive payment in return for the delivery of bus services as described in the terms and conditions of their grant agreement.

Payment calculations for NSG are based upon the number of live service kilometres operated during the claim period. For PSV and Section 22 permit holders’ ineligible kilometres (often referred to as ‘dead’ kilometres) are kilometres run light (i.e. empty) for example:

  1. The depot and the first registered stop or boarding point of a local service journey.
  2. The finishing point of one service journey and the starting point of the next service journey where the two points are different.
  3. The last registered stop or alighting point of a local service journey and the depot.

‘Dead’ kilometres also include those run by vehicles changing from private hire/contract or non-eligible service work onto eligible service work (though not the other way round), those run by a substitute bus and kilometres related to the maintenance or MOT of vehicles.

Section 19 permit holders may claim kms continually throughout the day, from the first pickup point to the last drop-off point of the day.

For operators claiming NSG under either section 19 or 22 of the Transport Act 1985, Group Hire Service kilometres are ineligible and cannot be claimed for.

PSV Licence operators may be eligible to receive advance grant payments based on the best estimate of live service kilometres intended to run between the dates of the relevant claim period. It is not in an operator’s interest to overestimate, as any amount overpaid will be recovered once the certified claim is submitted, validated and approved. Recovery of overpayments will be sought in the current or next financial year.

For operators claiming NSG under either section 19 or 22 of the 1985 Act, payment is based on actual kilometres run and paid twice yearly you should refer to the relevant section of the guidance for further detail.

Demand Responsive Transport (DRT) services are not eligible for advance payments, with payments being based on actual kilometres run. Payments are made twice yearly. For more information see the section on DRT.

Transport Scotland reserves the right to review the NSG terms and conditions, and payment rates at any time during the Grant period. Minimum notice periods for any rate changes are detailed in the terms and conditions for the scheme.

NSG claims should be made from the date that buses come into operation and run live kilometres. Backdating is assessed on a case by case basis, but claims can only be submitted for the current financial year and backdating applies only to the first date of the financial year that the claim is made (i.e. 1 April of current year of payment) providing the vehicles were in operation at that time.

Rates relating to legacy BSOG Low Emission Vehicle (LEV) rates will be included as appropriate for those buses which qualify. Entitlement to legacy BSOG Low Carbon Vehicle (LCV) rate, which existed only for a maximum of 5 years ceased on 31 March 2024.

NSG does not include payment rates relating to vehicle emission performance out with honouring the remaining BSOG LEV entitlement, including revenue arrangements contained in the Scottish Ultra Low Emission Bus Scheme (SULEBS) Round 2. This includes any repowered vehicles coming into operation from and including 1 April 2022. More information can be found in the relevant section.

NSG does not include separate payment rates relating to blended biodiesel or biodiesel fuel use.