Plans to overhaul the way free bus travel for pensioners is paid for is causing a headache for Oxford City Council.

From April 1, people aged over 60 will be able to travel off-peak on buses anywhere in England and Wales free of charge.

But council leader John Goddard said he feared the new system could cost Oxford residents millions of pounds and was sceptical about the Government's promise to meet extra costs.

He said: "For years we have been given more duties and not enough money to fulfil them.

"We're coming to the time of year when all local authorities start their budgets and we don't know what to expect from the Government, but we all know we're going to be out of pocket."

He said the Department for Transport should foot the bill for the scheme.

Mr Goddard added: "We must make enough fuss to persuade them to fund this national scheme nationally.

"They can't know how people will be travelling and what will be the extra travel costs."

Free bus travel for the over-60s currently costs the council about £2m a year.

But from April 1, anyone over 60 or who is disabled will get a national bus pass, valid throughout England and Wales.

One particular concern is the cost of journeys from the city's park-and-ride sites, because it is difficult to predict how many tourists visitng the city will use the national pass.

Oxford pensioners' spokesman Bill Jupp, 74, of Arlington Drive, Marston, said "I just can't see there's going to be much change from how it is now, because it would be too traumatic to travel across the country.

"But free travel within local authority boundaries has been great, because it has enhanced people's lives and allowed people to get out of their homes."

The Government says it has set aside more than £200m to meet the cost of the scheme and believes the extra money will be enough to help councils cover extra spending.