THE Government has unveiled a £16,000 funding package for an innovative scheme to tackle youth homelessness.

Housing Minister Yvette Cooper announced that Chester-le-Street District Council would get the money to develop 14 supported housing units in the town centre.

This is expected to reduce the number of young people who have to leave the area to find this type of accommodation - and risk losing training and college places and support networks.

Martin Walker, head of regeneration at the district council, saidd: "Previously, the homeless team at Chester-le-Street has been criticised for being ineffective in tackling the local homeless problem.

"However, we have turned our performance around to such an extent, that we are now highlighted for using best practice.

"The opportunities to develop the service that this funding provides will go a long way in helping us tackle youth homelessness within the area."

The funding builds on a package of measures announced last year in the Government's National Youth Homelessness Scheme, including a target to end the use of bed and breakfast accommodation for 16 and 17-year-olds by 2010.

Ms Cooper said: "Children and young people can face the most severe consequences if they experience homelessness, which can haunt them for the rest of their lives.

"That is why we need to do more to help teenagers and young people who find themselves homeless."

Anthony Lawton, the chief executive of national homlessness charity Centrepoint said: "Today is an exciting milestone for the National Youth Homelessness Scheme.

"Centrepoint is proud to be a partner, working with other key organisations to develop a source of good practice for local authorities and agencies working with young people.

"The much-needed funding will help these local authorities set up a range of innovative projects to tackle and prevent youth homelessness."

Statistics released yesterday show that new cases of homelessness in the North-East have fallen by 14 per cent, compared to the same period last year, to 1,140.

However, last year more than a third of new cases of homelessness were young people aged under 25.