TOWN Hall bosses will have to find houses for Bolton's homeless with help from a £50,000 government grant.

Under the new Homelessness Act, the council must draw up an action plan by this time next year to show how it will stamp out homelessness in Bolton.

The government has awarded the council the cash to fund a project which will help target homelessness among people leaving mental health wards, as part of the programme.

According to latest figures 75 families, couples and single people in Bolton are currently in temporary accommodation after being made homeless. Last year 941 people approached the council because they were being made homeless and needed to be rehoused.

Under the new Act the council will be obliged to house homeless single people who have not always qualified for help in the past.

Matt Cornish, spokesman for Shelter in the North-west, said: "It has been common for single homeless people to approach councils and be told they cannot help. Childless couples have also experienced problems getting help. But as we know a great many people have difficulty helping themselves. Now we are anxious to let all homeless people know about their new rights."

Bolton was awarded more cash than Preston which received £30,000 and Salford which got £17,000 - but Manchester received just over £100,000.

Mark, aged 38, from Horwich, is a Big Issue seller in Bolton town centre and has been homeless for nine months.

He said: "I think it's good they've got all this money as long as they spend it wisely. When I went to the council they were helpful but I was on the housing list for six months which is too long really."

A council spokeswoman said they would use the cash to fund a hospital link worker who would go on to mental health wards to identify patients with housing problems.

"They will be involved in providing help and advice to patients before and after they leave hospital. Another worker will use this practical experience and evidence gained to recommend future developments for the service."

Shelter, Homeless Link and The Big Issue in the North have launched a 'Things Have Changed' campaign to tell homeless people about their new rights.

For more information visit their website www.shelternet.org.ukor call Shelterline free on 0808 800 4444.