A FUNDING crisis could force a hostel for the homeless to close, leaving 33 “vulnerable” residents back on the streets to fend for themselves.

That’s the warning from charity worker John Coulston who has spent nearly 30 years campaigning for Bournemouth’s homeless community.

Mr Coulston is now struggling to balance the books after Bournemouth council pulled the plug on £78,000 of funding for Michael House in Boscombe.

The 82-year-old, who was awarded a papal medal for his charity work, set up the Sacred Heart Drop Inn centre and soup kitchen on Richmond Hill after running Michael’s night shelter for a decade.

When the shelter closed, the Poole father-of-four opened Michael House, providing accommodation, education and rehabilitation for the needy. Now the charity, which is due to open a third house in Grosvenor Gardens, Boscombe, on July 30, is appealing for financial help to safeguard its future.

Mr Coulston, chairman of Michael House, said: “Bournemouth council did not renew our contract at the end of the year. It was a huge shock because it was a third of our annual budget.

“The blow was softened by a generous legacy and a substantial donation but we have used those windfalls to reduce our mortgage debt.

“In the worst-case scenario our residents could end up back on the streets and our 12 members of staff could lose their jobs.”

He added: “Michael House is more than just a hostel; it’s a home and our mission has always been to help anyone who is vulnerable. It is a dry house for both sexes with residents staying, on average, for six months.

“We are now appealing to our friends, former benefactors and charitable trusts for support.”

Bournemouth council’s supporting people project manager Chris Lewis said: “As part of the council’s budget savings, which have been necessary due to a reduction in central government funding, we have regretfully had to make some difficult decisions relating to a number of services.

“Due to the number of other services available to support the homeless a decision was taken to end our contract with Michael House.”