Contrary to your story (Lottery cuts homeless charity funds', January 17), Homeless Action in Barnet did not have its funding cut by the Community Fund, which distributes National Lottery money to voluntary and community groups.

Its three year funding of £123,736 to establish the Foothold project came to an end last year and the charity put in a new application for £144,800 to continue the project.

Despite its excellent work supporting homeless people in finding suitable accommodation and gaining the necessary skills to sustain their tenancy, the Community Fund was unable to fund this second application.

It was a tough decision to make, but with almost £10million less money to give away this year, because of a fall in the number playing the National Lottery we receive 4.7 pence for every £1 spent there is fierce competition for funding, as you rightly pointed out. In fact there are more than four applications for every grant made. As a result of this budget reduction, we are only able to spend 20 per cent of our budget funding projects that have already received a grant from us. We have also had to target money at specific areas of need that are often overlooked by other funders.

Janice Needham

London Regional Manager, Community Fund