FREE bus travel for pensioners and disabled people in Wales is set to be agreed today. The scheme would start on April, if AMs approve the Assembly government's proposals, as expected.

Pensioners already qualify for free bus passes allowing them cheap travel, but from April travel will be free.

"It's one of our flagship policies," said the coalition's business manager Andrew Davies, "and it's something that England hasn't done."

Arthur Jeynes, an executive member of the pressure group Wales Pensioners, said free bus travel could have unforeseen benefits for the health service.

He said: "In South Yorkshire, in the days before Thatcher, they had free travel and the bill for the NHS plummeted because pensioners were able to get out and in to a variety of activities. They could visit different towns, go to the cinema and generate income during the day. There are spin offs that are not quantifiable in terms of economics."

Rod Jenkins, principal strategy and business development officer for the Gwent Joint Passenger Transport Unit explained how the new system will work.

"For passengers, it will largely follow what happens now. They will still need to pick up their free pass, then they will be able to travel for free."

Passes are currently distributed through post offices in Blaenau Gwent, Monmouthshire and Torfaen, and Newport Transport in Newport. However, this is under review.

For bus operators, who are already reimbursed by local authorities for the half-fare discount pensioners enjoy at the moment, they will now be able to claim back the full value of the fare. The Assembly is increasing council grants to meet that additional cost, estimated at around £7.2 million in 2002-3, rising to £13.9m the following year.

AMs were due to debate the Travel Concessions (Extension of Entitlement) (Wales) Order 2001 at today's plenary session.