£1m Northern Ireland school transport savings acknowledged as ‘challenge’ for taxi firms in Assembly debate
- Perry Richardson
- 22 minutes ago
- 2 min read
A reduction in school transport payments secured by the Education Authority has been formally recognised in the Northern Ireland Assembly as a ‘challenge’ for taxi firms, amid wider concerns that falling fares combined with rising operating costs could make parts of the industry unviable.
The issue was raised during oral questions to the Department of Education on 2 February, when Alliance MLA Stewart Dickson highlighted that “an agreement on savings of nearly £1 million has been reached between the Education Authority and taxi operators”. He questioned whether an unplanned approach to placing pupils and students was contributing to higher transport costs.
Responding, Education Minister Paul Givan agreed that reactive decision-making had a financial impact on school transport. He said: “That is why I outlined what a 10-year capital programme for special educational needs provision would look like, not least in establishing new schools but in enhancing provision in mainstream settings.”
Givan told the Northern Ireland Assembly that enabling more children to attend their local school would reduce the need for long-distance travel and the associated transport costs. “Where children are able to avail themselves of their local school that will inevitably reduce the requirement for long-distance transport and the associated costs,” he said.
Education Minister says reduced payments are difficult for operators as costs across the taxi sector continue to rise
Addressing the savings achieved through revised transport contracts, the minister confirmed that the Education Authority had reviewed its arrangements with taxi providers. “The EA has looked at the current provision through its contracts with taxi drivers. It has identified means by which it has been able to reduce the costs by almost £1 million,” he said.
However, Givan explicitly acknowledged the impact this has had on operators. “I understand that, for some taxi firms, that reduction in payment is a challenge,” he told MLAs, before adding: “My responsibility and that of the EA is to transport children and young people to their school setting at the best possible cost.”
Within the taxi trade, whilst that recognition can be viewed as significant, it does also spotlight growing concern about the economic pressures facing drivers and operators. Taxi firms involved in school transport are dealing with rising fuel prices, higher insurance premiums, increased vehicle finance costs and ongoing living costs due to inflation, all while contract rates are being reduced.
When fares or contract payments fall at the same time as costs rise, margins can quickly disappear. For drivers heavily dependent on education transport work, sustained reductions in payments may risk making it uneconomic to continue providing the service.
Cabbies would argue that if drivers are squeezed too far, some will be forced to leave the sector or withdraw from school transport contracts altogether. That, they say, could ultimately reduce capacity, particularly in rural areas, and make it harder for the Education Authority to secure reliable transport for pupils.
The Assembly exchange highlights the balance the Department of Education is attempting to strike between delivering savings for the public purse and maintaining a viable taxi sector capable of meeting school transport demand at a time of rising costs and persistent inflation.
