A COUNCIL is overhauling the way it runs social services after it was revealed the department overspent by £2.3m last year.

Middlesbrough Council plans to increase charges for services it provides for elderly and mentally ill people to recoup some of the debt.

The shake-up will include a review of who is eligible for help from social services.

Councillor Brenda Thompson, executive member for social care and health, said: "Social services in Middles- brough is under huge and continuing pressure and it is clear to everyone in the council that we cannot go on increasing spending year after year.

"The review will bring Middlesbrough's policies on charging and eligibility into line with most of our neighbours and with councils nationally. It will ensure we have a stable financial base on which to work.

"All social services staff are conscious of the needs of people in Middlesbrough, but also of the need to change how we work to ensure that we can support them effectively through sustainable services."

In February, Middlesbrough Mayor Ray Mallon said an increase in council tax of 14 per cent was necessary because the department was losing money.

The service has received £4.1m increase above inflation over the past two financial years but still overspent its £31m budget by £2.3m last year.

Deputy Mayor, Councillor Bob Brady, said the changes would ensure the council could sustain good quality, cost-effective services to the people who needed them most.

"We cannot keep on increasing this one area of spending and taking money away from other services which the people of Middlesbrough rely on," he said.

"It would be equally wrong to introduce piecemeal cuts which won't tackle the root cause of the problem.

"It is absolutely essential that social services has a stable and sustainable financial base so that these vulnerable people can still get good quality, reliable services."

Members of the council's Labour Group were informed of the changes and the overspend at a special meeting last night.

The changes are due to be discussed at an executive board meeting on September 23.

But Bob Pitt, former chairman of social services and deputy leader of Cleveland Council from 1989 to 1995, said: "Finance cannot overrule need and this appears to be a knee-jerk reaction to a financial crisis, but it is putting vulnerable people in society at risk."