Oil deal will mean half-price bus travel for Londoners on income support

(The Londoner is a newsletter for Londoners from the Mayor of London. It provides information about the policies and services delivered by the Greater London Authority and key issues affecting life in the capital, and encourages participation in current debates and consultation).

Caring charities and lone parent groups have welcomed a move to give a quarter of a million of the least well off Londoners cheaper bus and tram travel.

The historic deal means London's bus fleet will use subsidised oil from Venezuela - leading to a massive 20 per cent reduction in the price of fuel.

And the £16 million of savings made from this will be used to provide half price fares for those on income support.

The move - a benefit worth as much as £280 a year to each person - will help an estimated 130,000 carers on income support, who are unable to work because of their commitments, travel more easily and cheaply around the capital.

It will also help lone parents, the sick or disabled and those who are registered blind if they claim income support.

Steve Lee, from Carers London, said: 'This concession will make a real difference.

'Many carers have extra transport costs as a result of their caring role such as having to travel to do shopping for an elderly or disabled person, accompanying a cared for person to medical appointments or social activities.

A spokesperson for the Single Parent Action Network added: 'This is a step towards increasing access to services, maintaining social support networks and increasing access to training that may lead to better future employment prospects.

'High transport costs in London are part of the poverty trap, and any savings made are welcome.' The deal was signed following discussions by the Mayor and Venezuelan oil firm Petróleos de Venezuela Europa.

In return for the subsidised oil, London will provide specialist technical assistance to Venezuela in areas such as transport, the environment, development of tourism and town planning.

The scheme follows similar oil deals made by Venezuelan president Hugo Chavez to the American cities of Boston and New York to cut the price of heating for the city's less well off residents.

Mayor Ken Livingstone said: 'This agreement will benefit up to a quarter of a million of the lowest income Londoners and is also a good deal for Venezuela.

'London has invaluable expertise to contribute to Venezuela and will save it millions of dollars. Both London and Venezuela will be exchanging those things in which they are rich to the mutual benefit of both.' The reduction in bus and tram fares will be programmed into special Oyster cards available to all those in receipt of income support and it is hoped the scheme will become operational in July.

It will not lead to any increase in the London bus fleet's consumption of oil, and therefore no increase in carbon emissions, as it will simply enable the existing quantity of oil to be bought more cheaply.

The fuel bill discount will be calculated on the prevailing world price of oil and assessed twice a year.