I had this in Greater Manchester shortly before I moved away. GMPTE stated clearly that all school services not on contract (i.e. that are normal fare paying) pick up normal passengers along the route. There was a service from a school in Trafford which dropped off in Sale on its way to Northenden where I happened to live, so I boarded it when it stopped to let off students. The driver informed me I couldn't board as it was a school service. I pointed out that it was registered as a public service and if he didn't let me board I'd ring up the local Stagecoach depot and complain AND tell the Traffic Commissioners - he changed his mind, rather surlily (and told me not to sit next to anyone!!), but I'd made my point. Stagecoach would doubtless be aware of this, but if an operator has a service for which BSOG is eligible and they refuse to pick up passengers at valid stops en route they are claiming the BSOG fraudulently. You could also argue that adults should not be desirous of catching buses full of school children, but when I was young school children were, for the most part, expected to catch normal service buses full of adults where this was feasible.