WE'VE got our free bus passes - but will we have a bus to use them on?

That's the question being asked by over-60s as another raft of bus service cuts looks increasingly likely.

One major bus company, Wilts & Dorset, is already warning of future service cuts and fare hikes as the effects of the government's free bus pass scheme are felt.

And bosses at Yellow Buses admit they too have concerns with the level of funding being put into the concessionary fare scheme.

Liberal Democrat Cllr Pat Lewis, Bournemouth council's older people's champion, said: "It's so ironic. Older people are enjoying themselves and looking forward to April when they should be able to use their passes anywhere in the country.

"We got all excited about having the bus passes.

"It was such a good thing for the government to do and in some ways, it's worked out really well but it's no good if it affects services."

And John Cherrett, chair of Poole and District Pensioners' Association, said: "It does make you question the benefit of your bus pass when routes are then cut.

"But if we were paid a proper pension, we wouldn't even need free bus passes."

Wilts & Dorset lays the blame squarely at the feet of the government, which it claims has not funded the scheme properly.

It says it has no choice but to cut unprofitable routes if local councils cannot offer a subsidy.

Chris Harris, the bus company's public relations manager, said: "Due to the ridiculously inadequate government funding for the scheme, we like other bus operators are now unable to operate some services as we are forced to make a loss because of the paltry concessionary fare agreements dictated by local authorities."

A statement from the bus company added: "Many bus operators, including Wilts & Dorset, are anticipating more service cuts and higher than inflation fare increases to help meet the loss of income as many concessionary schemes only pay for the equivalent of four out of the 10 pensioners seen on a bus."

Derek Lott, managing director of Transdev Yellow Buses, said: "We are concerned about the level of funding received through the concessionary bus scheme but Transdev Yellow Buses is still in discussion with local authorities. I'm confident we can reach a settlement which is fair to all parties."

Wilts & Dorset's warning comes as local councils wait to see how many holidaymakers and day-trippers use their free bus passes while visiting the area this summer.

As a popular holiday destination, Bournemouth council believes it will be among the hardest hit by the extension of the scheme and has had to earmark £1million to fund it.

Cllr John Beesley, Bournemouth's cabinet member for resources, said: "It's not right that Bournemouth residents have to subsidise other people in the country."

In Christchurch, which has the highest population of over-60s in England and Wales, the cost of the scheme is calculated to be £390,000.

The Department for Transport has said the government is investing up to an extra £250m each year to extend the bus pass scheme to include off-peak local bus travel anywhere in England.

Unveiling the new-style bus passes, transport secretary Ruth Kelly said: "We have already seen how popular concessionary fares are.

"Bus use in England rose by four per cent in the year after we introduced free, off-peak local travel.

"Now we are extending their entitlement, millions of older and disabled people will be able to use their passes while visiting friends and family anywhere in England as well as to access local services."