MAJOR homelessness support groups who were threatened after the Government slashed York's council budget have learned they will be funded for another year.

But nearly a dozen smaller projects, which have not been classed as priorities by City of York Council, will have to hope they can find cash through other means, a report has revealed.

Five groups, including the Salvation Army Prevention and Resettlement Team, Peasholme Charity day service, and Citizens Advice Bureau bond guarantee scheme, have been classified as "prioritised schemes" and will receive funding from a pot of £355,000.

Lifelines for homeless people in York were put in doubt when the Office of the Deputy Prime Minister cut the budget it gives to the council to fund outside agencies by nearly £100,000.

Next year, the Salvation Army will receive £107,000 from the Homeless Directorate (HMD) budget - enough to keep them afloat - but a reduction of more than £24,000 on last year.

While the major services will operate on reduced funding, there will be no cash for a host of important schemes including those which carry out development and education work with young people, provide liaison officers and face-to-face training. They will have to find other means.

The report, written by homelessness service manager Becky Ward, states that while essential services have been secured: "The reduction of HMD funding will have a significant impact on the provision of services to homeless people in York."

The budgets will be discussed at a council meeting on Monday.

Chiefs at the Salvation Army, which helps homeless people settle back into mainstream society, have previously said that any funding cuts would be "concerning".

This year's budget news will undoubtedly see some cutbacks in services as groups try to stretch their reducing incomes across its homelessness strategies.

But the Citizens Advice Bureau bond guarantee scheme could receive an extra £7,990 from council coffers.

The service has requested additional financial support from the authority, which will consider its application, which officers are minded to approve, at the same meeting.

Updated: 10:38 Tuesday, February 24, 2004