Disabled students left stranded on first day of school

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NSW Premier Barry O'Farrell has ordered an inquiry after more than 700 disabled students were left without assisted travel on the first day of school.

An angry Mr O'Farrell described the bungle as "unacceptable" and a "stuff up", saying he had ordered the head of his department to begin an investigation into how 740 students could be stranded without transport.

Parents were only informed of the fact the buses would not be running over the weekend, and have been told they can claim back taxi fares until the debacle has been addressed.

"This is a stuff up," Mr O'Farrell told reporters at Homebush Public School in Sydney.

"The education minister, the department of education are trying to sort it out.

"And what I've asked the head of the department of premier and cabinet to do is put in place an arm's length independent inquiry to find out where responsibility rests and action will be taken to ensure it will never happen again."

It's believed the problem arose because the NSW Education Department is yet to transition its bus contracts.

The Assisted School Travel Program assists 10,000 students across the state.