June 05 2026
School transport for thousands of children across the UK is at risk because coach operators are struggling to meet the soaring cost of fuel, the Confederation of Passenger Transport has warned the Government.
More than 600,000 children in the UK travel to and from school by coach every day. But coach operators, most of which are small or medium sized local businesses, are in a position where they could be forced to cut services of all kinds – including holidays, sports trips, home-to-school transport and scheduled services – because of unsustainable costs.
CPT has been working with local authorities to understand the funding pressures they face. A letter from CPT to the Department for Education this week has set out the risk posed to school transport in particular, and has requested urgent financial support.
The typical cost of diesel for coach operators has risen by 30%, from 108p per litre to well over 140p per litre since military action in Iran began, restricting supply of oil through the Strait of Hormuz. Fuel is the second highest cost for bus and coach operators, behind the cost of employing drivers, and is a particularly big expense on rural routes with longer distances.
Coach operators are typically paid for school transport by local authorities – but contracts are generally at a fixed price and have not been adjusted to meet soaring fuel costs.
Based on current trends, the coach industry in England faces an additional bill of £3 million per month specifically for the cost of home-to-school transport. In a survey of its members by CPT, 38% of coach operators said they are likely to have to hand back school transport contracts due to rising costs.
In May, the UK Government unveiled a £100 million support package for the bus industry in England, including free travel for children aged between 5 and 15 during August, plus funding to support operators with rising fuel costs. However, money from this package is only available to bus, rather than coach, operators.
The governments in Scotland and Wales are considering similar emergency support to bus operators. Yet Britain’s 2,500 coach operators, of whom 81% are family or individually owned, will not be eligible.
Coaches provide vital services that are lifelines to local communities. They support 81,000 jobs and provide 450 million journeys per year – equivalent to 40% of all journeys on the national rail network. The economic value of coach employment in the UK is £6.4 billion per year according to KPMG analysis, including £640 million in Scotland and £425 million in Wales.
Graham Vidler, Chief Executive of the Confederation of Passenger Transport, said:
“Coaches are the hidden backbone of Britain’s public transport network. Communities across the country depend on them every day – including parents and children who rely on school transport.
“Operators are struggling with a sudden and unexpected spike in fuel costs. This is an exceptional situation and they should not simply be left to sink or swim on their own. The government needs to act now to ensure thousands of children continue to have the vital coach services they need to get them to school from September.”
Case study: MacPhails Coaches
A family business, MacPhails Coaches, has been running coach services in Lanarkshire, serving the central belt of Scotland, since the 1920s. The business has a fleet of 15 coaches and employs 35 people.
MacPhails runs a variety of different services ranging from school buses and coaches to corporate hire, church outings, airport transfers and sports fixtures. Among its services are school transport, working in North Lanarkshire, South Lanarkshire and Glasgow City.
Martin MacPhail, Director, says: “Most of my business is predicated on a price of up to 120p a litre of diesel. We were comfortable at 110p before but the price has gone up exponentially – with midweek, as well as weekly, prices changes by our suppliers for the first time ever. We were paying 160p at one point.
“For every £100,000 I was spending on fuel, I now have to find another £30,000. Some of our customers are in the same place as me – they’re facing rising costs too and we’re contractually obliged to meet the rate we’ve agreed.
“When it comes to home to school transport, most of us are stumbling on, bearing the onerous fuel price surge until the end of the school year. But we’ll be having a look at it in the summer – we can’t continue at a loss. You have to make a decision on what’s viable”
Case study: Chalkwell Coaches
Chalkwell Coaches in Kent has been a family run business since 1931 with 55 coaches, employing 95 people. The business has an annual turnover of around £5 million.
Roland Eglington, Managing Director, says 35 of his vehicles are used for school transport – primarily under contracts with Kent County Council.
“We’re in a position of considering our costs and looking to see which contracts are financially viable,” he said. “In terms of school transport, there’s a natural break when the summer holidays arrive. Most operators will be considering what work they do going forward.”
In addition to school transport, Chalkwell’s services include private hire, day trips, tourism and rail replacement buses.