A BUILDING firm is to employ homeless people in the construction of a new facility, after it worked with the public and voluntary sector to secure Government funding.

The Durham City based Esh Group worked with homeless charity The Cyrenians on a joint bid for funding for the facility, which will provide accommodation for 45 homeless people.

Durham County Council was also involved in the bid to the Homes & Communities Agency (HCA) which secured a £1.8m grant for rebuilding work at The Fells near Plawsworth, County Durham.

The Cyrenians has already invested more than £1m in the site, which it bought in 2009.

Cyrenians chief executive Stephen Bell said: "The Esh Group are one of the preferred bidders for the HCA. Before now we secured a number of grants and did the work ourselves.

"We sat down with them and put together a business plan.

"It is all three sectors, the public, private and voluntary sectors working together for the benefit of the most vulnerable within the region and in a small way helping to kickstart the local economy.

"We want to generate 20 per cent of our income from non charitable activities and we will be the main supplier of wood for the site from our manufacturing plant in Newcastle, which is for disadvantaged people to learn trades such as joinery.

"In addition the Esh Group is going to be employing two people from the Durham area to take part in the construction work."

Brian Manning, Chief Executive of Esh Group, based in Bowburn, said: "It is really encouraging to see central Government investing in the North East in this way; placing confidence and responsibility in organisations from the region which have ability to tackle issues and challenges within the region and come up with solutions."

"We have contributed our extensive experience via Esh Property Services, our social and affordable housing construction experts, at the design stage.

"We believe that the new style of accommodation will be significantly better for both residents and managers alike and that these new surroundings will give The Cyrenians' clients real personal pride and motivation to progress."

Glyn Hall, Head of Housing Services at Durham County Council, added: "Working closely with the Housing Solutions Services team at the County Council together we move almost half of those who seek help and support into independent living arrangements.

"Whilst this figure still, of course, needs to improve, we have every confidence that these innovative proposals from The Cyrenians and their construction partners, Esh Group are an additional important step in achieving that aim."