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Funding: Housing grants face government cuts

But the Office of the Deputy Prime Minister funding stream for supporting vulnerable groups with housing needs, including young people, has not been increased in line with inflation.

For the current financial year, the grant will remain at its 2003-04 level of 1.8bn, but in 2005-06 it will go down to 1.72bn, followed by 1.7bn in each of the following two years.

Joyce Moseley, chief executive of Rainer, a national voluntary organisation working with young people, said: "The funding will help allay fears of sweeping cuts, although an 80m cut still represents a reduction of 4.5 per cent across the board."

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