GOVERNMENT claims that homelessness is falling were called into question by charities and volunteer workers in the North-East last night.

Statistics show the number of people in the region becoming homeless in the final quarter of last year fell by nearly 25 per cent, compared with the same period in 2003.

Today's figures also reveal that the number of people in the North-East living in temporary accommodation fell from 1,020 in January last year to 830 by the end of the year.

But both Shelter and Nightstop, charities which aim to ensure people have a roof over their head, questioned the findings and said an increasing number of people are seeking their help.

Ruth Manuel, of Nightstop, which has a team of volunteers prepared to have homeless people aged between 16 and 25 stay with them, said: "These figures certainly don't reflect what we are seeing."

The organisation, which operates in Stockton, Middlesbrough, Billingham and Redcar and Cleveland, reported a "quite significant" increase in the last year.

And Bob Finch, of Shelter North-East, said: "The trend has been continually up and I'd like a closer look at the figures."

The Government today announces an increased investment in homelessness prevention, from £60m in 2005-06 to £74m in 2007-08, and a target to halve the number of households living in temporary accommodation by 2010.

Minister for Homelessness Jeff Rooker said: "Homelessness has no place in a sustainable community, and our aim should be to eradicate it. Already, we have achieved record reductions in rough sleeping and ended the long-term use of bed and breakfast hotels for families with children.

"Today's figures show that our measures to reduce homelessness are beginning to work in the North-East."