The teenager's mother reported Lancashire County Council to the Local Government Ombudsman when it refused to help with costs after her daughter developed mobility problems during the first year of her GCSE studies.

The county's education authority refused to help pay for special transport because the girl, who has been called Amy to protect her real identity, did not meet strict criteria as she did not attend her nearest school.

Legally. the authority only has to provide free travel for pupils who live more than three miles from their nearest available school.
But the Ombudsman said officers failed to use discretion.

After two appeals, the council eventually agreed to pay for the second and third terms.

Now it has been ordered to reminburse her mother for all the costs and pay the girl compensation.

An investigation by the Ombudsman said the council's procedures for dealing with requests for help with transport were inadequate and criticised officers for failing to apply its own education transport policy properly and to consider its duties to the child under the Disability Discrimination Act.

The council also took too long to deal with Amy's mother's complaint about the transport issue.

Local Government Ombudsman Anne Seex said in her report: "The council failed at every stage to consider its powers and duties in relation to 'Amy'."

The council agreed to develop a proper procedure for dealing with requests for help with school transport in circumstances other than children simply starting at a new school.

It was also told to ensure that all officers were aware that its own education transport policy gives it discretion to award help in exceptional circumstances and of its duties under the Disability Discrimination Act; and review its complaints procedures.

A spokesman for the county council said the recommendation had already been made and added: "We are in the process of amending our transport entitlement policies in the light of new government guidance which comes into effect from next September, so we will ensure that the improvements suggested by the Ombudsman continue to be embedded in the new policies."

The council was told to send the girl a written apology, pay her £150, reimburse Amy's and her mother's travel costs for the autumn term 2005 and pay Amy's mother £500.