A "FREE" bus pass will allow a pensioner to travel only 50 yards to the bottom of his street.
However, David Wright, of Sacriston, County Durham, then has to pay half-fare - exactly as he does now.
The farce has been caused because of a disagreement about Gordon Brown's allocation of new money to provide free transport for pensioners.
The problem has arisen because rival councils in County Durham have been unable to agree on how the money is to be spent.
The outcome has been that each district council will only provide free transport for its own pensioners in its own territory.
The new "free-travel" scheme for over-60s comes into effect on April 1.
Mr Wright, 62, a retired smallholder, lives an area covered by Chester-le-Street District Council. However, 50 yards from his home, he crosses into Durham City Council territory, where he has to pay for bus travel.
Mr Wright said: "I often travel into Durham for shopping, or the library.
"The bus stops outside my front door. At present, I am entitled to half-fare travel into Durham, which amounts to £2 return for the three-mile journey.
"That is not going to change. Fifty yards from the bus stop outside my door and the bus crosses the boundary into Durham City. It is hardly going to make any difference to me."
Mr Wright's Labour MP, Kevan Jones, said: "Mr Wright's situation shows how ludicrous and difficult to administer the scheme is as it stands at present."
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