Southend Council is facing an extra £180,000 bill to finance free bus passes for the over sixties, because they have proved so popular.
The figures are revealed in an estimate for next year's budget when there is likely to be an even greater demand for the passes than there is currently.
From April, the free bus passes for the elderly will be valid nationwide rather than just in Essex.
Nigel Holdcroft, cabinet member for community services, said it was good news there had been such a large take up of the bus passes.
He added: "I am pleased so many of our senior citizens have taken up the bus passes, but the Government have not provided adequate resources to finance the scheme.
"We have pointed out the problems which we are facing in conjunction with local authorities which have similar ones and we are hoping the Government will listen."
Mr Holdcroft said the council had to make sure the scheme was adequately funded so the bus companies could be paid for the services they were providing.
"Although we can hope the Government will provide us with extra money so we will not need to use this amount, we have to make sure it is available."
Donald Fraser, acting chairman of the Southend Bus Users Group said the number of people using the free bus passes was encouraging, but added the lack of adequate government funding remained a worry.
He said: "We are making representations and also asking local MPs to give their backing for more funding on a national level."
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