The scheme was created in 1984 by the Greater London Council, although there had been concessionary bus fare schemes in London before that. When the council was abolished in 1986, responsibility for the scheme passed to the London borough councils. The cost of providing the travel concession is negotiated between London Councils and the local transport operator Transport for London. It is funded through a mixture of national grant and council tax. In 2007 there was a dispute between the Mayor of London and London Councils on the negotiation process, in particular the ability for the Greater London Authority to impose a charge should no agreement be reached.