SCORES of subsidised bus services across Tyne and Wear could be axed or reduced because of the introduction of pensioners' free travel.

The area's transport operator Nexus, which also runs the Metro rail system, announced yesterday that it would have to withdraw funding of otherwise uneconomic services, mainly on evenings and weekends, when the Government scheme starts in April.

School buses and discount travel for other groups may also have to go, it warned.

Currently, pensioners and registered disabled across the country are entitled to half-price travel.

Nexus and the Tyne and Wear Passenger Transport Authority (PTA) blamed the funding system, based on population rather than level of bus use, for creating a £7.3m shortfall.

The latest blow to the region's bus services comes in the wake of bus company Arriva's decision to close its depot in Richmond, North Yorkshire, which has put the future of some services in doubt.

In November, Durham County Council announced it was withdrawing subsidies from 60 services - many to former pit villages - in an attempt to claw back a £700,000 overspend. North Yorkshire County Council is reviewing its subsidies.

Councillor David Wood, chairman of the Tyne and Wear Passenger Transport Authority, said: "It is absurd that in April pensioners will be getting free travel, just as local services they rely on are being withdrawn to pay for it. This cannot be what the Government intended."

The Tyne and Wear PTA hopes lobbying will win improved funding - it estimates that it needs £20m rather than the £12.7m allocated - before it decides what cuts to make on Thursday, January 26.

A spokesman for the Office of the Deputy Prime Minister said: "We don't believe existing services in any authority, including in the North-East, need to be affected.'' But he added that the points the PTA and Nexus raised would be considered "closely and urgently".