Pensioners and children are facing an increase in fares on the Tyne and Wear Metro system because not enough people are using the new Sunderland extension.

Disappointing passenger numbers on the new �100m line to Wearside means concessionary fares will rise in the New Year.

Nexus, which operates the Metro, said the cost of the line is not being covered by revenue from passengers.

Mike Parker, director general of Nexus, has admitted they over-estimated the number of people who would use the extension when they carried out a study five years ago.

At the moment we are looking at a shortfall this year and next year of something like �3m

Mike Parker, Nexus

He told BBC Radio Newcastle the system faced "stark choices" and had to live within a budget.

Mr Parker said: "At the moment we're so far below the original projection and, of course, we've got the costs of drivers and maintenance at the stations to cover.

"We havn't got the numbers of people travelling and therefore we haven't got the revenue.

"At the moment we are looking at a shortfall this year and next year of something like �3m."

Nexus has put forward four different proposals to increase revenue from concessionary fares.

If it goes ahead, the increase will be the first for five years.

Official decision

The present maximum fare for pensioners of 30p, could rise to 50p in one of the options.

Another option would be to take up the government's statutory half fare scheme which would mean no limit to the maximum fare.

The options - all of them meaning some form of fare increase - will be put before the Passenger Transport Authority in January.

Nexus management have not made any recommendation about which might be their preferred option.

Twelve new stations were added on the new nine-mile extension line when it opened in April.