The elderly and disabled are missing out on £250,000 of renovation grants for their homes because Oxford City Council has failed to release the cash.

On October 31, the executive board agreed an extra £270,000 should be spent on grants to bring this year's allocation up to the normal budget of £1.1m. It was agreed the money would be allocated by December.

Following a meeting of the environment scrutiny committee yesterday, Andy Forbes, of the community services department, said only £20,000 had been made available.

He added: "Without the money, we're storing up misery for the most needy sections of society. With it, we can help them. The emergency payment of £20,000 has almost all gone and we need the £250,000 released now."

Cllr Fooks, the chairman of the scrutiny committee, said: "I was dismayed last month, and now I'm distraught this time to hear that the money has still not been released.

"The elderly and the disabled need this financial help.

"The executive board could hold an emergency meeting to find a way of processing this payment as soon as possible."

Cllr Mike Woodin, who is the board member responsible for renovation grants, promised to investigate the hold-up.

Disabled people in private homes are eligible for disabled facilities grants on a mandatory basis. Disabled people in council properties, whose applications are backed by social services, are also entitled to grants.

Energy conservation grants, or grants to help the elderly convert homes, are discretionary. All are means-tested.