ODPM's Supporting People funding decisions meet fierce opposition

The network, which represents councils and supported housing providers, will query funding decisions for pipeline schemes that are due to start by March 2006. Spokesman Ken Davies said: "A number of pipeline schemes have been allocated resources that are significantly less than what is required to run the service."

The letter will also raise concerns that funding for existing schemes was given on the understanding that savings would be made during the first year.

This would increase the pressure to do service reviews in the first year to make the savings.

From April, authorities will be given benchmark costs for high, medium and low-cost schemes.

Several councils are also writing to the Office of the Deputy Prime Minister to challenge it over funding shortfalls. Sunderland council is writing to the ODPM to query a £o.5m gap in funds for its existing schemes.

David Smith, Supporting People lead officer at Sunderland council, said there was also a shortfall in their bids for pipeline funding: "One scheme will cost £17,000 and we were given only £1000."

Nick Whitton, Supporting People lead officer for Newcastle council, said he had a £400,000 shortfall in funding and would also write to the ODPM to ask why some of Newcastle's pipeline bids were turned down.

He said: "I cannot measure potential savings from reviews because we have not done them, and I cannot see how the ODPM can be in a better condition."

An ODPM spokeswoman urged councils and providers to contact the department with queries about funding. She said the final cost adjustment on 31 March would help to correct funding anomalies.

Meanwhile, the ODPM issued more guidance on the review process on Wednesday in a bid to calm providers and councils. Further consultation on strategic guidance closes on 28 March.

A black and minority ethnic Supporting People website will be launched on 11 March. The site, www.bmespark.org.uk, was put together by researcher Lemos & Crane for the ODPM.