London's most vulnerable will suffer 64 per cent cut in grants
Crucial services helping the capital's poorest and most vulnerable people will be forced to close because of drastic cutbacks.
More than 400 projects, which serve tens of thousands of Londoners every year, will lose up to 86 per cent of their funding. They rely on £26.4million in grants to help the abused, the neglected and the homeless, including children in some cases.
The funds will be slashed by 64 per cent to £9.8million under government-imposed cuts to councils. London Councils, which represents the capital's 33 local authorities and provides the funds, made the decision which will see many groups lose their grants as early as June. Some councils have asked for their money to be "repatriated" so they can spend it locally.
Among projects affected are the New Horizon Youth Centre in King's Cross, which has been helping young homeless people for 42 years, and Galop in north London, which focuses on reducing hate crime. Peter Lewis, chief executive of the London Voluntary Service Council, which represents many of the organisations affected, said: "This is absolutely devastating for individuals who rely on the services.
"It will undo much of the hard work done by these organisations, which have vastly improved the lives of thousands of Londoners.
"For example, homelessness has been on the increase recently due to the current economic climate. When these organisations then lose the funding they rely on to help keep people off the streets, it will just exacerbate the problem."
In a letter to London Councils, Mayor Boris Johnson warned "a move to local commissioning may well result in additional costs, unnecessary disruption or complete loss of services". He urged "a more phased approach", adding he had "doubts about the pace of the review".
Mr Lewis added: "What London Councils are saying is that they can spend this money better locally, but so far the majority of the boroughs have not promised they will be putting the money into the same kinds of services."
The grant was to expire next year but the funding will be pulled as early as June for many organisations. Chairman of London Councils leaders' committee, Jules Pipe, the mayor of Hackney, said a grants programme would continue to run for "pan-London" organisations "where there is often no clear relationship with an individual borough".
It emerged last week that Westminster council plans to cut its children and youth services budget by £3.5million over two years. MPs warned that the move could lead to a rise in teenage and gang violence.
