Grey Power is urging the Government to look at the economic benefits that stem from free transport for senior citizens.

The Government has reached stage two of its review into free off-peak transport for SuperGold card holders. The scheme looks like it will exceed its $18 million a year budget, with $2 million of that spent on the Waiheke ferry alone.

Grey Power board member Violet McCowatt says elderly people are supporting local businesses when they travel to the island and other areas. She says even if they only spend two dollars when they are out, that is two dollars that would not have otherwise been spent.

Ms McCowatt says the free travel also provides health benefits for elderly people. She says it gets them out of their homes, into the fresh air and moving around.

Labour is accusing the government of doing a u-turn if it makes any cuts to the free transport scheme. Finance spokesman David Cunliffe says it would be a broken promise by John Key.

Mr Cunliffe says the Prime Minister confirmed as recently as March last year that the Government would fund any increase to the cost of the scheme and was not worried that the numbers were on the rise.