INCREASES in hospital admissions and homelessness in Newport will follow an Assembly decision to cut funding that backs projects for society's most vulnerable people, health bosses and councillors have warned.

The frail elderly, people with learning difficulties and mental health problems, the homeless, victims of domestic violence, young people leaving care, and people with alcohol or drug problems will be affected.

Wales-wide cuts of 16 million over the next two years will hit schemes under the banner of Supporting People, an initiative focused on providing housing-related support for these vulnerable groups. The cut equates to almost 600,000 next year in Newport, with further cuts in 2006/07.

Schemes which benefit from Supporting People funding, like a new facility for the frail elderly in Bettws, similar to that at Wellwood House in Ringland, are being opened by Newport city council this year.

These also include supported living schemes for people with learning difficulties and complex needs, and for vulnerable young people aged 16-18 years, including care leavers and the homeless.

To back these up the council had compiled a list of priorities using Supporting People money.

The grant was also to fund more than two dozen other projects for 2005/06.

But a report put before the council and Newport Local Health Board (LHB), states there is now "no chance" of these going ahead. Councillor Lloyd Delahaye, cabinet member for adult and housing services, said money promised by the Assembly will not now come through. In a letter to the Assembly accompanying the council's Supporting People plans fro 2005/6, he and councillor Bob Poole, cabinet member for young persons' services, warned: "The consequences of these cuts, if implemented, will be a reduction in services for some of the most vulnerable people in our local communities and will result in more homelessness, more admissions to hospital and residential care, and less provision for people with mental health and substance misuse problems.

"The cuts will also put schemes currently in development in Newport at risk, as all have a great deal of capital investment already committed."