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Bus services in Devon could be face cuts to meet the cost of the free travel-for-pensioners-scheme.
The county council's having to take-over the 12 million pound scheme from next year.
But there are concerns the government won't pay all the costs.
In March this year around 168,000 of the free passes were issued in Devon – a 72% uptake of over 60s in the county.
Councillor Stuart Hughes, Devon County Council Cabinet Member for Highways and Transportation, said: “The scheme has been a success story since its introduction but I believe unless the Government fully funds Councils then it should be the Government that funds the scheme. Until Government confirms the funding formula we’re not certain of the funding level, but there are serious concerns that the scheme will be under-funded, so we are between a rock and a hard place.”