A COMPANY set up by Mencap to look after vulnerable people in the Gravesend and Northfleet area is facing severe debts. Gravesend and District Mencap Services is only kept afloat thanks to county council cash handouts - and is likely to struggle after Christmas.

It blames changes brought in by the residents' landlords a year ago. A total of 19 people with learning difficulties live in the homes - Benham Lodge in Pelham Road, Gravesend, and Granby Place at The Hill, Northfleet.

The company claims it is losing more than £1,000 a week because it now has to foot the residents' rents. Angry relatives were told at a crisis meeting that it is only trading thanks to a £40,000 KCC grant.

Company treasurer Ross Armitage resigned earlier this year, but he is still listed as a director and the board has not been able to replace him.

First clues to the problems came in a letter from Keith White, a local solicitor who is on the company's board. However, it had been losing money ever since residents were asked to sign tenancy agreements by the landlords, Hyde Housing Association. As they live in residential homes they cannot claim housing benefit.

To solve the problem, KCC has been talking with Hyde Housing about de-registering the Gravesend property in Pelham Road. This would enable the residents living there to claim housing benefit, and those who wanted to would be helped to become self-reliant.

The residents include autistic sufferers; adults who have lived for more than 40 years in sheltered environments; some with no educational skills and others with emotional problems. These would be moved around to ensure sheltered care was provided at Granby Place.

Relatives and long-time carers are seriously concerned the changes would undo years of care with the residents. Most of the tenants have lived in the properties since they were first opened up to 19 years ago.

Leading carer, Joyce Benham, who was awarded the MBE for her work with mentally handicapped people in Gravesham, said: "It is not something we would want to worry them with until we have to. A lot of them don't have any start in life or education. How can you suddenly make people with brain damage self-reliant?"