A NEW shelter for the homeless is to be opened in Chorley thanks to a huge government cash bonus.

The accommodation for young homeless people is being funded by a £1.8million grant from the Housing Corporation Fund.

Chorley Borough Council officers tabled a joint bid with South Ribble and West Lancs councils setting out a pledge to help the area's homeless.

The annual grants are normally in the region of £500,000, but this year's bid was so well received that government officials increased Chorley's award to £1.8million. The remainder of the cash will go towards building housing developments, shared ownership flats and homes for the black and ethnic minority communities in Chorley East ward.

The shelter will be Chorley's first dedicated direct-access facility for young homeless people. Although the town does not have many 'visibly' homeless people living on the streets, there are many people in unstable accommodation, living in hostels in neighbouring boroughs, on friend's floors or squatting.

The project is to be jointly managed by North West Progress Housing and Stonham Housing Association.

Richard Roe, Chorley Borough Council's housing needs and investment manager, said: "It's much more than we expected.

"We are trying to identify a suitable site for the homeless accommodation and hope to begin development by the end of 2003, with a completion date in mid-2004.

"It's a big boost and a significant investment in the borough."

Anne Jones, chairman of Chorley Help the Homeless, said: "We're absolutely delighted. This is long overdue. There is a real need for more beds in Chorley as the few facilities we do have have long waiting lists.