Loughborough: Homelessness charity fears closure after funding cut

The Falcon Centre said its deal with the council helped it qualify for housing benefit

A Leicestershire homelessness charity has warned it may have to close if it loses a council grant.

Leicestershire County Council currently gives Falcon Support Services (FSS) - which runs a 30-bed centre, in Pinfold Gate, Loughborough - £300,000 a year.

However the authority is now considering withdrawing that support as it looks to save money, the Local Democracy Reporting Service said.

FSS chief executive officer Rachel Hall said the cash was vital.

Ms Hall said losing the funding contract with the county council could in turn threaten the charity's access to government housing benefit support which its hostel needs to stay open and continue providing support to around 100 people a year.

She said: "It has knock-on effects and consequences.

"We also deliver all our community and health services from the centre as well, so if we were to lose that building, we wouldn't be able to deliver those services from there."

Ms Hall said the hostel was supporting increasing numbers of people without accommodation because of the cost of living crisis and the aftermath of the Covid-19 pandemic.

'Tough decisions'

The council, which needs to save around £90 million by 2026, offers the grant to people maintain their tenancies, develop skills to live as independently as possible and to access local health and well being support.

It said the money did not go towards the "bricks and mortar" nor any beds in the centre.

The authority said it believes it can support homeless people through its existing First Contact Plus teams and local area coordinators.

It said no decisions had been made but it has approved a consultation over ending the grant.

Louise Richardson, council cabinet member for health, said: "It's regrettable we have to look at service changes and cuts, but we have a tough financial outlook here and that means we have to make some tough decisions.

"Looking at national guidance, we don't believe [the centre will lose Government support], but it would really be up to the charity to discuss this with their local housing authority. The county council can't be the provider of last resort."