A CRISIS fund to prevent people becoming homeless is to double — but some grants will become loans.

In 2010, Bury Council set up a £15,000-a-year fund aimed at warding off the effects of the credit crunch on the most vulnerable people.

Staff can give grants of up to £1,000 each to people at risk of becoming homeless, to pay for emergency home repairs, emergency accommodation for rough sleepers or household appliances.

The grants can also be spent on rent deposits or counselling to address relationship breakdowns.

To date, 35 people have been given a share of £13,280, saving the taxpayer £160,000, as paying for temporary accommodation and resolving homeless cases can cost £5,000 a time.

Councillors under pressure to balance the books in the wake of a £15.8 million budget cut from Central Government want the fund to be self-replenishing.

The council has tabled proposals – due to be backed by councillors at a town-hall Cabinet meeting last night – to double the annual fund to £30,000, while making some of those who receive the cash in future pay it back.

Cllr Rishi Shori, the council’s housing representative, said the change in approach would regenerate funding so it can benefit more people.

He added: “Homelessness affects around 1,800 of the borough’s residents in some way and this money is available, in a particular set of circumstances, to support some of the most vulnerable people.

“Some grants will continue but, in some cases, people will be asked to repay the money, for the benefit of other people utilising the fund.”

A Cabinet report does not say how the council would reclaim money and, while Cllr Shori said it could sometimes take it from people’s benefits, he could not rule out the use of bailiffs would be used.

He added: “Every case is unique and Council staff would handle each situation with the utmost care. They would strive to avoid enforcement action, which would only be an extreme last resort.”

A Bury Council spokesman said: “Early intervention is working: homelessness preventions have nearly quadrupled from 235 in 2011/12 to 957 in 2014/15, while the average length of stay in temporary accommodation is now 7.32 weeks, compared to some places parts of the country where this can be anything up to five years.”