Children and the elderly in the North East will have to pay higher fares - partly because a �100m public transport link has failed to attract passengers.

The Tyne and Wear Metro was extended to Sunderland earlier this year.

But not enough passengers are using the Wearside link, which was opened by the Queen in May.

The changes

From January: Pensioners' fares up 20p Children's fares up 5p in schooltime Free travel for uner-11s scrapped

Now Metro and bus operator Nexus is hiking up concessionary fares for pensioners and children.

From January pensioners will have to pay an extra 20p per journey on Metro, bus or the cross-Tyne Shields ferry. Children will pay an extra 5p during school times.

The current scheme to allow under-11s to travel free on all forms of public transport is also to be scrapped.

However, Nexus will bring forward the time of morning concessionary travel from 0930 to 0900.

'Unavoidable'

Danny Marshall, chairman of the Tyne and Wear Passenger Transport Authority, which sanctioned the increases, said: "The reason for that rise is that the PTA through Nexus needs to save more money in 2003-2004.

"We have to balance the books.

Mike Parker: Maximum fare still good value

"We will still continue to spend in excess of �20m per year on concessionary travel schemes.

"It is regrettable that we have to raise the cost of concessionary travel, but given the budget requirements this is sadly unavoidable."

Mike Parker, director general of Nexus, said: "We believe that even a maximum fare of 50p represents good value for money for journeys anywhere in Tyne and Wear.

"Coupled with that we have addressed concerns from pensioners about the timing of concessionary travel access.

"We are facing stark choices with the shortfall in expected revenue for the Metro - rising insurance costs for 11 September and other factors have been critical, and we have to live within a budget."