A CHARITY is in crisis talks with a council about how to continue its funding.

Deptford Action Group for the Elderly (DAGE) was dealt a blow when a bid for £62,000 from the Big Lottery Fund was refused earlier this year.

Since 2000, the Lottery has been a major financial contributor to the running of the pop-in parlour and information centre for older people in Deptford High Street.

It also organises free boat trips and parties at the Albany Theatre, Douglas Way, Deptford, which are attended by more than 500 elderly people.

But for the first time in six years, DAGE has lost out on funding from the Lottery's Reaching Communities programme.

The group was told it had only a one-in-four chance of meeting the Lottery's strict funding criteria, which involved encouraging voluntary and community activities.

It was unsuccessful because of the greater demand for funding of projects across the UK.

Group chairman Harry Haward said: "This has been a devastating blow to our pensioner members, who depend daily on DAGE for friendship and support with benefits and advice on areas from crime prevention to the NHS and the pension service.

"If anyone with any influence can help their mums and dads, this will be great."

Now the group is planning to meet Lewisham Council's executive director of community services Aileen Buckton to address DAGE's funding crisis.

It costs £60,000 a year to run DAGE's pop-in parlour.

This figure pays for two full-time posts and the running costs.

The council, which has granted £10,000 per year to the organisation for the past six years, has offered to give £12,000.

But DAGE still needs to meet the £48,000 cash shortfall.

Last year it got £60,000 from the Lottery and £10,000 from the council, which also helped with other projects the group runs.

DAGE project development worker Tim Hamilton said: "We didn't expect this from the Lottery, which has helped fund us for six years and has promoted us as a successful project."

The 40-year-old expects if DAGE does not get funding for the posts to run the parlour, it could close within two months.

He added: "You can't run something on thin air. We hope something is done."