FREE concessionary bus travel for elderly and the disabled will come in for Worcester residents in April.
Pensioners currently pay £12 a year to receive reduced-fare bus travel in the city.
Under new laws, from April 1, pensioners and disabled people will be given a free pass that offers half-price tickets. However, the move - a Government pledge just before the General Election - will cost Worcester City Council an extra £520,000 to implement. Chancellor Gord-on Brown is putting forward £350m nationally, but councillors say tax rises or service cuts are on the way if Worcester's share is not enough to cover the costs.
Although Labour councillors called for an even greater cash commitment, for free consessionary bus travel throughout the county, their pleas were dismissed as 'foolish' until more financial details were discovered.
The council agreed to initially take up the 'minimum' free city bus pass scheme, which could then be upgraded if the Government stumps up extra cash.
Speaking at the full city council meeting on Tuesday night, leader Stephen Inman highlighted the problem.
"We are in a predicament that we will make a decision without knowing how much we will receive," he said, adding that they should be told in the next fortnight.
Bedwardine's Conservative councillor Barry Mackenzie-Williams added: "I do believe that if we were voting with our hearts we'd probably all vote for the amendment for countywide travel.
"But the Government has put us in a difficult position with regard to spending on this matter."
Labour councillors Bob Peachey, Paul Denham and Roger Berry all called for the council to grasp the "opportunity of a lifetime" to improve the bus service.
However, Liberal Democrat councillor for Claines, Alex Kear said: "Free actually means charged somewhere else, whether it means in council tax or losing valuable services."
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