MORE than half of the county's beds for homeless people are set to be axed despite a multi-million pound "rescue deal".

Charity leaders warned the situation in Oxford was "a bleak picture" as they braced for cuts of £1.5m over the next three years.

The decision to reduce support was agreed in February by Oxfordshire County Council, which is grappling with massive reductions to its grants from the government.

Now the county's five district councils and Oxfordshire Clinical Commissioning Group have stepped in and provided cash, but they warned it will still mean a reduction of up to 154 beds across Oxfordshire out of the total 285.

Claire Dowan, chief executive of charity Oxford Homeless Pathways, welcomed the proposals but said the funding cuts would still have a "significant" effect.

She added: "It could mean it simply becomes untenable for some organisations to keep operating.

"We do not know how it will affect us yet, but it is very concerning.

"Services that are already stretched are going to be under further strain and there is still uncertainty about the long term.

"Central government funding for homeless support continues to get lower and lower and there could be worrying changes to housing benefit.

"It is a bleak picture. But we will do everything we can to continue our vital service to the community."

Dave Child, from East Oxford, who was formerly homeless, said: "This is going to mean more beggars on the streets, more people living in tents, it means the problem will still get worse.

"It is a catch 22 really, but when the winter comes and people need somewhere to put down their heads there will be fewer places available. That is wrong."

The county council will cut £1.5m from homeless support by 2019, with £500,000 set to go annually from next year.

The deal agreed by other councils and the CCG would see £1.25m provided in 2017/18, then £847,000 in the following two years.

It has so far been approved by Cherwell, South Oxfordshire and Vale of White Horse district councils already, with Oxford city council set to consider it tomorrow.

It is hoped overall that it will fund up to 139 beds across the county, with O'Hanlon House in central Oxford remaining open.

But no deal beyond 2020 has been agreed and city councillors have concerns it only meets half of the estimated 150 beds needed in Oxford.

City council deputy leader Ed Turner added: "People have rallied together to get this rescue deal but it does unfortunately mean the level of support will still be reduced.

"In Oxford it will not maintain all the hostel provision but it should lessen the impact of these damaging budget cuts.

"We continue to be concerned though about cuts to homeless support when rough sleeping is already on the rise and we need a long term plan to tackle it."

County council cabinet member Judith Heathcoat said: "I am pleased discussions have led to a plan being set out on how services for single homeless people can be continued in Oxfordshire.

“It is a good example of local organisations working together to come up with a realistic solution despite difficult circumstances."

South Oxfordshire District Council leader John Cotton said: "We work very hard to provide assistance to people who are homeless or at risk of becoming homeless – and the funding we are putting forward will ensure a good service is maintained.

"Our council will not let this important service disappear."

Matthew Barber, leader of Vale of White Horse District Council, added: "Addressing homelessness is a key priority for the council. Following the reduction in funding by the county council we have worked closely with other agencies to make sure support continues to be available now and in the future."