HUNDREDS of people rescued from unemployment by a Government scheme are facing an uncertain future after the project was put on hold.

The Future Jobs Fund (FJF) has been frozen as part of plans to cut £6.2 billion from national spending.

And the move leaves firms and public bodies unable to offer assurances to the staff they hired after receiving funding from the £1 billion project.

The initiative, which was introduced by the previous Government last year, has resulted in 130 people in Stoke-on-Trent being offered six-month paid work placements.

And there are a further 240 across Staffordshire who have been given jobs.

The project was aimed at 18 to 24-year-olds who had been looking for work for a year.

Wetley Rocks-based social enterprise Farm2Grow has been able to take on 17 workers thanks to the fund.

And managing director Helen Bailey  said: "I think it's terrible the scheme has been stopped as it was a way of helping people build their confidence and get people out of the routine of just sitting at home.

"We will have to scale down how many people we take on after this group, which is a real shame."

Stoke-on-Trent City Council led a consortium of 28 public sector and voluntary organisations behind the county's FJF strategy, which bid for the cash.

Besides local authorities, NHS trusts, housing associations and colleges, other partners included employment advice service Connexions Staffordshire, Staffordshire Fire and Rescue Service, The Hollybush Centre in Blurton, YMCA North Staffordshire, NCA (Newstead Community Association) Enterprises, The New Vic Theatre and charity Caudwell Children.

The city council employs 169 staff thanks to the FJF.

The authority has confirmed a planned intake in October will still go ahead. But all positions will be reviewed in March next year.

Each placement is supported by £6,126 to cover six months' wages and any training and administrative costs involved in the 25 hour-a-week jobs.

The Government's decision to halt the project could add to the number of unemployed adults in the city.

Figures from the end of last year revealed 35,500 were out of work. The number of people in the city able to work was 148,900, of which 35,190 were claiming some kind of benefit.

Housing association Epic has been able to take on 27 trainees thanks to the FJF.

And head of business development Neal Hopkins said: "We are disappointed that the Government is not continuing with the project, but we are looking at ways we can continue to create sustained jobs for young people." The association plans to work with Aspire Housing and Staffordshire Housing to create six positions.

Mr Hopkins added: "Off our own back we will fund many of the placements to last at least a year."