Edinburgh taxpayers will shoulder a £1.5 million 'burden' if the Government does not cover the cost of free tram travel for youngsters, officials have warned.
Under-22 year-olds will be entitled to ride buses free of charge from January 31 next year as part of a nationwide concessionary scheme being rolled out by the Scottish Government.
However, light rail — which includes the capital's trams and Glasgow's subway — has not been covered by funding set aside by ministers.
Despite this, Edinburgh City Council is expected to waive tram fares for all under 22s from early next year — and has set aside £500k to do so.
The local authority already pays for free tram travel for over 60s and disabled saltire card holders living in Edinburgh.
Transport for Edinburgh boss George Lowder said it was estimated Edinburgh Trams will lose around £1.5 million a year if no Government funding is secured to support the inclusion of trams in the new scheme.
He said: "We would then fall back on the £500k in the budget and given that although the transport ALEO operating year is a calendar year and not a financial year, the £500k in financial year 2021/22 will cover, we expect, the cost incurred by Edinburgh Trams in quarter one of their next operating year in 2022.
"Our modelling suggests that the impact of the under 22 concession on Edinburgh Trams would be in the region of £1.5 million per annum in terms of lost revenue and if that's reimbursed at £500k or the lot then that will have an impact on the profitability of the company going forward."
Mr Lowder added the financial impact would grow once the network's extension through Leith and Newhaven opens in 2023.
Green councillor Alex Staniforth has warned Edinburgh will "shoulder the burden" for youngsters' tram fares if the concessionary scheme's extension is included in the upcoming council budget and the Government refuses to foot the bill.
And he is urging the council to write to Transport Scotland and finance secretary Kate Forbes asking for trams to be included in funding for all national free public transport schemes that apply to buses.
A motion submitted by Cllr Staniforth ahead of a full council meeting on Thursday (December 16) reads: "Glasgow City Council has already resolved to write to Transport Scotland urging them to include their light rail subway system within funding for the scheme and that it would be consistent for Edinburgh to make the same request for trams.
"If light rail is not included in the scheme it will potentially put other councils off from investing in those methods of public transport and may also lead to a two-tier system of public transport when public transport integration and increased patronage is critical."
