Bed-blockers are putting Southend Council in a precarious financial position, it has been revealed.

The cost of paying for care for elderly people in hospital is set to put the authority £500,000 in the red over the next two years.

This could lead to a cut in the number of hours' home care the borough's pensioners can get.

Councillors are set to back a call for council bosses to talk urgently to health chiefs about the problems, when they meet tomorrow.

Assistant social services director Phil Stepney said: "There are no surplus funds available to help with the pressures on this significant element of the budget.

"The consequences of this additional pressure are that we will be unable to maintain current levels of care by March 31, 2000 and that level of domiciliary service provided will be restricted."

He explained that £9.515 million was in the 1998/99 budget to pay for residential and home care for around 1,000 adults and older people in the borough who need it. This includes a special Government grant of £1.412 million.

He added: "There has been considerable pressure on budgets, prior to 1 April 1998, due to the number of patients ready to be discharged from hospital, for whom there were inadequate funds to provide care.

"This pressure has continued since April 1 and it culminated in a report to the Government urgently requesting additional funding."

He said 114 older people had been discharged from hospital and placed in residential care this year.

Of these, the authority had agreed to fund 25 for the long term and 45 until March 1999. Another 44 had been funded by the council, thanks to the £1.412 million grant.

The council fears it will not receive such a grant next year. Estimates show that costs will be £183,000 over budget for this year and £318,000 in 1999/2000.

Mr Stepney said the council faced further pressures from residents who currently paid their own care costs, but whose savings would run down, leaving them needing council cash help next year.

The cost of care could also soar, as Euro rules cut working hours and people become frailer and need more help.

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