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MILLIONS of pounds have been set aside to pay for war veterans’ accommodation in Colchester.

The town is one of eight projects which have won Government funding after fines worth £40million were taken from city banks.

The £6million, which has been allocated by Number 10, will be used to build 65 units of temporary, supported and independent accommodation in the town.

The houses will be used by veterans who are planning to return to independent living.

The project will be carried out by Riverside housing, Stoll and Haig Housing. All three are specialists in working with veterans and their families.

Mr Cameron said: “Our Armed Forces make huge sacrifices for the nation and it is right that all of us recognise that sacrifice - that is why this government enshrined the Armed Forces Covenant in law.

“One of the greatest worries for our troops when they are wounded or injured is how they and their families will continue with daily life.

“We should do all we can to take away those worries by providing them with the specialist help and support they need to continue to live their lives and these projects will help to deliver that.”

Leann Hearne, Riverside’s Executive Director of Care and Support, said: “We are delighted to have the opportunity to combine our expertise and resources to develop a comprehensive pathway which will make a world of difference to helping homeless veterans out of housing need, into training and therapeutic support and back into civilian life.”

Ed Tytherleigh, Stoll chief executive, added: “We are very proud to be working with other leaders in their field supporting veterans and hope this pathway marks a watershed in the way that housing providers work together to support this country’s most vulnerable veterans.”

James Richardson, chief executive of Haig Housing, said: “The need for decent long term housing is vital for veterans; a home provides a secure foundation for life in the civilian world.

“Haig Housing has decades of experience in the provision of good quality housing and housing advice for veterans and is particularly delighted to be involved in housing provision in Colchester - an area with such a strong military connection.”