Waltham Forest council has hit back at criticism as it looks to slash its budget for homeless services by £1 million.

The local authority says its money was not being spent in “an effective way” as it prepares to reduce its funding for single homeless people by £996,000 per year.

However, London-wide homelessness charity, SHP, claims cuts will reduce the number of supported housing beds in the borough from 147 to 27.

The charity fears this will leave a gap in provision for those with the most complex needs, such as drug and alcohol dependency or mental health problems.

Particular concerns have been raised over the closure of Wardley Lodge, a 23-bed hostel for homeless people with complex issues in Leytonstone.

Wardley Lodge Service Manager Simona Giunta said: “Wardley Lodge is the only hostel in the borough appropriate for single homeless people with high support needs.

“Our residents have led chaotic lifestyles. Many find it difficult to live independently and have struggled to sustain tenancies in the past.

“Advice services haven’t worked for them and they tend to get passed from one service to the next.

“Hostels like this provide a lifeline for people who would otherwise be stuck in a revolving door of services.”

Under Waltham Forest council plans, which are set to be approved at a meeting next Thursday (May 26), single homeless people will be referred to an ‘advice hub’ where they can access information.

However, SHP fears this will leave a gap in provision for those with the most complex needs, such as drug and alcohol dependency or mental health problems.

A head count in autumn last year found 33 people sleeping on the streets in Waltham Forest, up from just three in 2013.

The borough was also recently listed in the top 20 local authorities in the country for rough sleeping.

Cllr Khevyn Limbagee, cabinet member for housing, said: “We are committed to supporting those most in need and that means helping the most vulnerable within our community.

“Our new service will see us working with a leading provider of support services to homeless people and rough sleepers in London in partnership with local organisations.

“Together they have access to over 2,000 beds across London and will help us to turn the lives around of our homeless residents.

“A review of existing services for single homeless people in Waltham Forest found that the council’s money was not being spent in the most effective way in preventing homelessness.

“The Council has worked very closely with the existing hostel providers including SHP to secure alternative accommodation for hostel residents.

“We continue to fund a specialist hostel that offers accommodation and support to former rough sleepers and who have more complex needs.”