Councils are increasingly opting to provide “on-demand” bus services to plug some of the gaps left by cuts by commercial operators.

The County Councils Network, which represents rural councils in England, says three in four have rolled them out.

But it warned that many services were making a loss and extra funding was needed to keep them going in future.

According to figures from the Department for Transport, bus services have been in long-term decline, with the pandemic hitting passenger numbers and profits hard.

Councils have been putting on what is known as a bookable service, typically a minibus, which only operates when and where users have booked it ahead of time.

The stops on the journey, and the timings, depend on where people want to go – direct from their door to the train station, a local hospital or the supermarket, for example.

But the County Councils Network group is warning they aren’t a substitute for investing in commercial bus services.

The “demand-responsive” transport schemes largely operate at a loss, according to a survey of its members.

While the new services are bridging a gap in rural areas where commercial bus services have been hit, the high cost of running them means that few councils operate these services at a profit, it said.

It asked the 37 county councils and unitary authorities it represents across England about the bus services they provide. Some 95% of respondents said their on-demand service operates at a loss.

Just one council said they run services at a mixture of profit and loss.

About 75% of the 24 councils that responded offered the on-demand service, with almost half running up to five different services across their areas.

On one on-demand service available in Pewsey, Wiltshire, passenger Julie Wilson said it had been an enormous help.

While the service doesn’t have a fixed timetable, Julie has been able to pre-book journeys every day for the last three weeks in order to visit her husband in hospital.

“I don’t drive, so it’s the only way I have to get to the hospital each day and each evening – I really don’t know what I’d do without it.”

Another user, Rosie Mooney, got on in Devizes town centre after doing some early Christmas shopping.

She said that the service “keeps everyone in the villages in touch with what’s going on.”

It started in the summer, with a pot of money from the central government’s rural mobility fund.

Philip Hiscock, who has kept a close eye on transport options around Wiltshire for years, says it is better than nothing. But he suggests some issues with the availability of timeslots and the booking technology, via an app or the phone, need ironing out.

Stephen-Giles Medhurst, the County Councils Network’s spokesperson for transport, said that on-demand schemes had proven popular with residents, particularly the elderly.

But he said that bookable services were there to complement existing ones, and were “not a substitute” for them.

“With councils facing unprecedented financial pressures, sustainable investment from government in traditional bus services remains the priority in ensuring a comprehensive local transport network”, said Mr Medhurst.

In more rural parts of the country, it has become increasingly difficult to make traditional commercial bus routes make enough money to keep going.

It was recently announced that bus services in parts of England will get a £150m boost due to the Birmingham to Manchester leg of HS2 being scrapped and the government’s decision to focus on its new “Network North” transport plan instead.

Some industry figures warned, however, that the cash would not go far enough.

It has also made millions of pounds available for councils to bring in bookable services, while it also recently confirmed the £2 cap on bus fares would be extended until the end of 2024.

Most bus services in England outside London have a £2 cap on the price of single tickets.

Community services for older people and vulnerable passengers will also receive a 60% funding increase in the amount they can claim for fuel to help keep costs down.