Currently, Durham County Council offers free travel to students over 16 who travel more than two miles to study.

But it said the annual cost of �2.9m is now "unsustainable".

The authority now wants all students who have to travel longer distances to be entitled to subsidised travel after September next year.

The new system will mean that some young people who would otherwise have received free transport will have to pay a contribution to those costs.

But many more who currently have to pay the full cost of transport will only have to pay part of their travel bills, according to the county council.

Attractive option

The council believes the changes will encourage more young people to continue in post-16 education and bring its spending on home-to-school transport under better control.

Claire Vasey, cabinet member for children and young people's services, said: "It will make the most cost effective use of funds for Post-16 transport and the best possible use of transport facilities within the county.

"But most importantly, it will improve access to further education for young people who may currently be put off by the travel costs involved.