VULNERABLE people in York will see their "essential services" maintained despite a £1 million cut in the grant the Government gives the city council to help them.

City bosses say about 170 people, the majority of whom have learning difficulties, will be affected by changes after York's Supporting People grant was reduced to £8.4 million in 2006/07 - from £9.3 million in 2003/04.

But Bill Hodson, City of York Council's director of housing and adult services, said he wanted to "reassure" customers that no essential or valuable services would be withdrawn or reduced as a result of the funding changes.

He said the authority was "working with our partners to ensure that alternative funding will be found where necessary to enable people to stay in their own homes". The Supporting People scheme is funded by the Office of the Deputy Prime Minister (ODPM) and funds national housing-related support to prevent homelessness, hospitalisation or institutional care, and can help the smooth transfer to independent living.

It helps a wide range of people, including the elderly, people with disabilities or mental health problems, homeless people and ex-offenders.

The council was asked to review the eligibility criteria for the Supporting People grant in York following changes to the Government's original guidance concerning the use of the grant.

Mr Hodson said: "As a result of the review, it has become clear that some of the services funded by the Supporting People grant offer more than just housing related support and, in accordance with the Government's regulations, the grant will have to be reduced in those cases.

"The partners forming the commissioning body for the grant, City of York Council, Selby and York Primary Care Trust and North Yorkshire Probation, have reviewed the services receiving Supporting People funding and some services will need to receive a reduced level of funding."

Coun Sue Sunderland, the council's housing chief, said: "These changes are not related to the City of York's budget.

"This is yet another example of how the Government changes its mind over how funding is to be allocated.

"We know we will face ever more cuts in the future but, bearing in mind the current problems facing the Primary Care Trust, these changes could not have come at a worse time.

"The Government is forever announcing high profile programmes to help our most vulnerable residents, and when the dust has settled they begin to withdraw their support.

"Unfortunately, those who use these services can be left feeling let down."

Updated: 10:20 Monday, April 03, 2006