PENSIONERS may lose their free bus travel at 9am after cash-strapped Oxford City Council revealed it has been saddled with a £2.4m bill in the first year of a new passes scheme.

The council has continually said it has been chronically underfunded by the Government for the new set-up — which celebrates its first anniversary tomorrow.

Pensioners have taken 4.5 million trips in the city.

The city council was facing a shortfall of about £1.8m. But in a fresh body blow, that is to rise by up to £600,000 after the council lost an appeal over how much it pays Stagecoach and Oxford Bus Company for concessionary travel.

In total, the scheme will cost the city about £3.2m but it has only received £800,000 from the Government.

Nationally, pensioners are guaranteed free bus travel between 9.30am and 11pm.

Oxford, like many other councils, decided it would fund journeys from 9am.

But last night Ed Turner, board member for finance, said that would have to be reviewed because of the city’s dire financial situation.

Under the old scheme, a council where the pensioner started their journey would pay for both the outward and return trips. But under the new set-up, that is reduced to just the single journey — meaning the city, because it is the most visited area in the county, has this year been forced to pay for people’s return to their home towns or villages.

The council had paid bus firms 45 per cent of the cost of a fare, but they demanded 56 per cent.

An independent inspector appointed by the Department for Transport ruled on Friday that the council should pay 51.1 per cent and Mr Turner said “Given that we are already paying well over the odds for the concessionary bus fares this is kicking the council when it’s down.

“There are winners and losers in this scheme and it discriminates against urban authorities which are surrounded by rural areas.

“We are paying for return journeys all over the place.”

He said the council was now considering whether it should change the 9am start time.

He said: “We do value that extra half hour and we want to keep it, but we can’t rule out a change, it’s a fairly dire situation.”

Mr Turner said it was estimated there had been a 50 per cent increase of 1.5m free trips in the first year.

Mr Turner said the council was considering an appeal against the inspector’s decision. He has already written to Transport Minister Paul Clark asking for a review of Government funding for the scheme.

Secretary of Oxfordshire Pensioners’ Action Group Michael Hugh-Jones said: “It is a disaster for the council’s finances.

“However it would be absolutely outrageous for pensioners if the start time changed.

“The saving would be absolutely minimal and wouldn’t achieve anything except to annoy those few pensioners who have to be up early for hospital appointments.”

Maureen Tweney, 70, from Kennington, said: “I’m really conscious that someone has to pay for it. Whatever anyone says it isn’t really free travel. It is something to use not abuse.”

Oxford Bus Company managing director Philip Kirk said: “We didn’t think the money offered by Oxford City Council was a fair sum.

“The matter was investigated by central government at their Department of Transport. They looked at the facts and figures and calculated that 51.1p in the pound is the fair payment figure.”