Hundreds of Shropshire students could be asked to pay a lot more towards the cost of their bus ticket to college or sixth form.

Shropshire Council charges are among the lowest in the country and the current contribution is £262 per annum. But from September this will rise to £330.

And a report says increasing the rate from £330 to £450 from September 2012 would generate an estimated £140,000 full year saving for the cash-strapped council.

Increasing the charge further to £550 from September 2013 would bring in an additional £110,000.

The report to Shirehall watchdogs says that the authority’s spending on school transport, £10.3 million in 2009 to 2010, is the second highest among the country’s 55 unitary authorities and reflects the rural and sparse profile of Shropshire.

Despite making a range of savings, the school transport budget continues to overspend by £400,000 a year.

Post-16 transport is the only area of the budget where significant savings can still be made.

Currently there are 900 students who make a financial contribution towards their bus ticket.

There are also 550 students who do not pay as their families are in receipt of certain benefits.

The council’s gross expenditure of post-16 transport was £960,000 in 2009 to2010 with student contributions totalling £200,000.

The report says that a Government grant of £89,000 is to “disappear” which will place on pressure on funding.

It says that the average cost of a bus ticket to the council is £662 per annum. Prices vary dependent upon the route and the operator.

The report warns: “The proposed increases in parent/student contribution rates are likely to present challenges to students, parents, colleges and sixth forms in Shropshire.

“Discussions have taken place with Shropshire Further Education colleges and the eight maintained secondary school that operate sixth forms.

“The post-16 sector expects, on average, a three per cent cut in Government funding in the forthcoming financial year.”

The report says that council officers have been exploring with bus operators the possibility of a commercial student travel fare scheme, which would offer a bus pass of about £400 per annum.

But it is unlikely that small operators would be able to match this figure.

The protecting and enhancing the environment scrutiny committee is being asked on Tuesday to consider the report and advise on the way forward.

By Dave Morris