Children could get free bus travel under plans being drawn up by Deputy Prime Minister Nick Clegg to help families.
He said he wants to cut costs for families and reduce congestion on the roads.
It is hoped the policy will also encourage older children to become more independent rather than relying on their parents to provide a "taxi service".
Senior sources told The Daily Telegraph that Mr Clegg was "very keen" on the proposal, which he believes could become a defining policy for the Coalition.
Pensioners' free bus passes, which cost £1 billion annually, are said to be one of the most popular government hand-outs.
The child bus passes could be announced later in the year as part of a family-friendly package of measures that would also include the Conservatives' tax breaks for married couples.
The bus passes would cost hundreds of millions of pounds, borne by local councils which would seek compensation from the Government.
Under-16s have been entitled to free bus travel in London since 2005, with those under 11 also able to travel without charge on the Underground.
Mr Clegg wants the scheme to be extended nationally in place of children paying half fares. It is understood that the passes would not be means-tested.
