A Derbyshire MP has warned some councils may be forced to cut jobs because the government's free bus fares policy has not been funded properly.
Liberal Democrat MP for Chesterfield Paul Holmes has written to the prime minister and Transport Minister Paul Clark to highlight the shortfall.
Derby City Council faces a bill of £1.5m to cover the cost of the scheme.
Chesterfield Borough Council and Erewash Borough Council both face budget shortfalls.
"We now spend around £1bn a year on the free bus pass"
Mr Holmes said: "This news will come as a bitter blow to taxpayers in Chesterfield.
"It leaves behind a massive threat that essential services may have to be cut.
"It's a government scheme - the government should be paying.
"I have written to Gordon Brown and the minister responsible, Paul Clark MP, to demand an urgent meeting."
A Department for Transport spokesperson said: "We now spend around £1bn a year on the free bus pass - an important scheme which offers improved transport links to 11 million elderly and disabled people.
"Derbyshire has benefited from almost £3m of additional funding, purely to cover the England-wide extension announced in April - a rise of nearly a quarter on what was spent on concessionary travel locally last year."
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