EFFORTS to tackle homelessness in York have received a devastating blow after the Government slashed funding by £150,000.

City of York Council will get £250,000 from the Office of the Deputy Prime Minister (ODPM) in the next financial year to support the implementation of homelessness strategies - compared to £400,000 this year.

The money supports initiatives to assist people into private rented accommodation, provide debt advice, mediation, support rough sleepers into stable accommodation, education, training and employment.

Council leader Steve Galloway told the Evening Press: "It is a big blow. We hoped with the excellent work being done with partner schemes like ArcLight to move forward on the issue.

"Any reduction in funding would be bad news given the number of beggars on the streets of York."

Becky Ward, council service manager for homelessness, said they were pleased that the ODPM recognised the hard work undertaken by the council and voluntary agencies in providing services which contribute to reducing homelessness.

But she added: "We are disappointed that the reduction in funding will inevitably result in less money being available to fund this work in future."

Homelessness minister Jeff Rooker announced yesterday that the ODPM will distribute a total of £45 million to councils across England to tackle the problem more effectively, with voluntary organisation receiving a further £15 million.

Local authorities in Yorkshire and the Humber will receive a £1.8 million share.

Mr Rooker said: "This funding is good news for local authorities and the voluntary sector and demonstrates our continued commitment to tackling and preventing homelessness. The additional resources will support local authorities in delivering their homelessness strategies which they had to publish for the first time this year."

Homeless charity Shelter said that the funding was not new money and it would not tackle the underlying reasons behind the problem.

A spokesman told the Evening Press: "While this money is welcomed, there remains a lack of affordable housing. Many people are priced out of the market."

Denise Rooney, of North Yorkshire & York HARP (Housing Advice Resource Project), said there had been a huge rise in homeless figures and that "the problem is not going away."

"Local authorities are extremely strapped for accommodation," she said.

Updated: 10:54 Thursday, December 11, 2003