A hostel for the homeless in Bradford will close this year.

Lawley House, the Salvation Army’s Lifehouse in Leeds Road, is being decommissioned in May.

Bradford Council chiefs have decided not to renew a contract for the Salvation Army to provide its services as part of a review of homeless services.

A Salvation Army spokesman said: “The reality is the comprehensive spending review has impacted on all local authorities and they are having to make some hard decisions.

“We would want to work with them to ensure the service we provide meets local need. We would not seek to close any hostel and would and will do all we can to respond positively to what is asked of us.

“Indeed, many of our services across the country are at the heart of local authority plans and are offering an excellent service, meeting needs and transforming lives for the better. However, we have to be realistic and respond to each set of circumstances as they are presented to us.” Members of staff at the hostel have been kept informed of the situation since the decision was taken.

The spokesman said: “Staff are aware that the service will be decommissioned in May, 2012. As part of that process an options appraisal is being carried out which includes looking at ways we will support staff and clients in the coming months.”

Built in 1971, Lawley House was constructed by the Salvation Army to house the homeless in Bradford.

As well as providing shelter, it supported people with issues such as drug and alcohol problems.

They also learned literacy and numeracy skills as well as how to compile a CV and prepare for job interviews.

“There are lots of people who have come through our doors and have had their lives changed,” said the Salvation Army spokesman.

Jayne Hellowell, the Council’s service manager for commissioning, said Bradford’s cash allocation for Supporting People reduced by £2.4 million or 13 per cent this year, although the Council will still provide £2.4 million towards the homeless sector.

She said: “We are working very closely with the Salvation Army so that people who stay there are supported to move on when Council funding ends in May.

“Provision for homeless people is part of a series of reviews that have been looking at how vulnerable people can be best supported in the longer term.

“The Supporting People Programme, which provides housing-related support to help vulnerable people to live as independently as possible in the community, is funded from the overall formula grant which the Council receives from the Government.”

The Salvation Army has three churches in Bradford which will continue to help the vulnerable and needy in the city.