On April 1 this year, the Government extended concessionary bus travel for the elderly to allow them to journey across England.

The take-up has been 50 per cent higher than predicted.

It means the £717,000 that the Government provided for the scheme has fallen well short of the total £1.15 million that Peterborough City Council has spent.

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Council leader John Peach said: "As usual, the Government got its sums wrong.

"It gave us money for the scheme and, as always, it did not give us enough and it has cost us much more than it estimated.

"It is a difficult dilemma for us as everyone knows it is a national scheme, and so it is difficult for us to say we are not going to do it."

Peterborough MP Stewart Jackson, has taken up the cause and written to the new Secretary of State for Transport Geoff Hoon expressing his alarm at the funding shortfall in the city.

Mr Jackson said: "I am very concerned that this additional cost to the taxpayer will result in increased pressures on front line services like adult social care and schools in Peterborough.

"This is another example of a Government proposal which generates good headlines, but is not properly funded and, as such, will put further financial strain on the city council budget."

The scheme came into effect in October 2006, and meant over 60s could travel throughout the country for free.

Chief executive of Age Concern Peterborough Pat Strachan said although she did know not specific figures of the number of people who had used the scheme, she believed it had been very popular.

"Speaking to many of the people who use our day centres, I know they have really benefited from the scheme," she said.

"I know it has helped broaden their horizons and given them some really lovely experiences."

Seasoned bus traveller Jean Hunt (81), of Crown Street, New England, Peterborough, said the new free travel had made a huge difference to her, and many other pensioners' lives.

"I attend a lot of meetings on behalf of the Senior Citizens Forum, so the free bus passes have been very beneficial to me," she said.

"I have travelled as far as King's Lynn using them, but do make regular journeys to Stamford and Oundle and into Peterborough city centre.

"I cannot say how much it has saved me in fares overall, but it would be quite a bit."

Mrs Hunt said she also believed the bus passes were really beneficial to people who live alone.

"I think people tend to socialise more because they can get about for free," she said.

"It is very important, especially for those people on their own, as it means they can travel to meet friends much more easily."