Members of the Welsh assembly's social justice committee have called on the assembly finance minister to write to the Treasury urging it to rethink the country's Supporting People allocation.

The draft assembly budget for 2005-6 outlines plans for a £13m (9.7 per cent) cut in Supporting People funding for Wales, due to a fall in the money for the programme it receives from the UK government.

Campaigners and assembly politicians fear such a reduction could increase homelessness, poverty and hospital admissions and force many services to make cutbacks.

Welsh Local Government Association spokesperson on housing Neil Rogers said: "Key strategies and objectives could also be adversely affected, meaning health board and social services' budgets will also be under more financial pressure."