A RECYCLING service which provides low cost furniture for those on low incomes is closing.

Full House Furniture Recycling Service in Holme Lacy Road, Hereford will close its doors for the last time on July 31.

It was set up to provide, from donated goods, low-cost furniture and household items to disadvantaged families and individuals, those in poverty and housing need, those on low incomes or receiving state benefits.

Chair of the board, Nancy Ellis, said it is with great sadness that the decision has been made.

She said: "But while we are currently solvent, a number of significant factors have led us to the conclusion that our long-term financial prospects are poor.

"In the last year of trading, we made a significant financial loss, despite every effort being made to manage costs tightly.

"The recent introduction of the new National Living Wage has had a significant impact and forthcoming increases up to 2020 mean intensified cost pressures on us."

Ms Ellis said auto-enrolment under the new pensions legislation will also potentially add to their core costs and they are worried about an increase in rent.

She said a viable future strategy would also call for an investment in management staff.

The charity also offers work to people who might be unable to find work elsewhere that is within their capabilities and provides a sheltered environment and work experience to individuals with special needs and/or disability, including those who are homeless.

Ms Ellis said: "While we are extremely grateful for the support of a number of funders, such as the Eveson Trust and the EF Bulmer Foundation in the past, we do not believe it is right to seek charitable funding to subsidise day to day running costs, when other charities locally can offer a broadly similar service, albeit without providing employment opportunities for vulnerable people."

She said they are discussing ways in which services and staff can be transferred with minimum disruption.

Collections will continue to be made until June 30 and there will be a major closing down sale over the next few weeks.