A BUS service for elderly and disabled people in Hyndburn has been saved after the borough council vowed to find the funding it had threatened to cut.

Earlier this year, it was revealed that Hyndburn Council was to axe the £7,500 grant from its budget it traditionally gave to Dial-a-Ride as part of a series of cost-cutting measures.

But the decision caused an outcry because Dial-a-Ride, based in Avenue Parade, Accrington, said it would be forced to take one of the three buses it operates off the road.

This cut would have affected around 100 passengers and meant the service would have to lay off one of its drivers.

The charity, which had received the grant for the past 15 years, was told it would have to compete against other community groups and charities by bidding for a share of a £60,000 pot of funding, called a Community Chest.

This was slammed by opposition councillors including the Labour group's deputy leader, Coun David Myles,.

He said: "A bidding process is a like raffle -- you just have to hope your ticket gets drawn out. That is what is being done to Dial-a-Ride.

"This was in the budget until, or unless, a political decision was taken to get rid of that service.

"You have said that this service is a low priority but that it is a much-needed service and a lot of people are going to suffer."

However, today council leader Coun Peter Britcliffe pledged that the council would now continue to provide the £7,500 funding towards the service. The move came after a meeting with the charity.

Coun Britcliffe said: "Over the last few weeks, I've come to realise what a valuable service to our elderly and disabled residents Dial-a-Ride provides.

"Therefore, I'm delighted to confirm the council will continue to fund the service from either the Community Chest fund or from savings achieved elsewhere in the budget."

Brian Gibbons, chairman of Dial-a-Ride, said: "It was a productive meeting and I'm really pleased the council is to restore the funding for this vital service which provides a lifeline."

Lancashire County Council, which provides funding for Dial-a-Ride's other buses, this year reduced its contribution by £6,000, but Dial-a-Ride manager Sandra Farmer said at the moment, this would not result in a cut in services.