A CASH-strapped charity that helps disabled people to develop new skills is having to make workers redundant to stay afloat.

One employee of Scope on Teesside has already been made redundant and another two losing their jobs.

A question mark now hangs over three of the four non-profit making businesses run at the charity's centre, in Acklam Road, Middlesbrough.

The businesses help 41 disabled people develop useful skills.

They range from the production of greetings cards to video hire, the running of a tuck shop and the hiring out of a light and sound room.

Funding problems began two years ago for the centre, which now needs to find sponsors desperately.

Mike Nelson, manager of the centre, said: "We have been living on our cash reserves, which have continued to dwindle.

"We have got through with the staff we have, as long as we could, but we now need to take action to make sure we survive to the end of this financial year."

The job cuts will mean a £25,000-a-year saving in the running costs of the centre, which is independent of the national charity of the same name.

Mr Nelson said: "My dream is we get the funds that will sustain the project for more years to come.

"If we don't get the money, basically people will come to the centre, they will sit down and because we would have no money, carry out minimal activities.

"Ultimately, we are not going to close, because we have social service contracts.

"But we just don't want people coming through our doors, just to be fed and watered. We want them to have access to the community.''

"We, as an organisation, have been here since 1964 and I would hope to be the manager of an organisation that survives.

"We are going through a period of pain.''

The centre has 11 full-time and five part-time members of staff.

Until the job cuts were made it had annual running costs of £75,000.

Although the centre's business activities are not commercially viable, they are successful and the charity's dream would be to set up other groups to help disabled people across the Tees Valley