Travel: Subsidised bus travel in jeopardy as Mersey chair calls for firms to step in

Merseytravel will no longer subsidise half-price under-16 travel from April, arguing that the bus companies should be footing the bill. Councillor Mark Dowd, the body's chair, plans to meet Transport Secretary Douglas Alexander next month.

Dowd said: "If children are allowed by law to travel by rail for half fare without the money coming from council tax, a similar scheme should exist on buses."

A Department of Transport spokesman said it would cost the Government 1bn to provide half-price bus fares to under-16s and there were no plans to do so.

Subsidised transport is also under threat in London, where Conservative London Assembly member Angie Bray has proposed abolishing free travel for all under-18s in full-time education by 2008 and replacing it with a pilot school bus scheme that would run in six London boroughs. The proposal will be voted on today (Wednesday).