Age UK Camden has been awarded �193k from the government – but it can’t be used to save threatened services such as the Henderson Court day centre.

The majority of the money – awarded by the Transition Fund Programme to Age UK Camden, Islington and Haringey – is only to be used for business restructuring.

The three groups will consider sharing a CEO, merging backroom staff and may even consider a full merger.

But funding conditions mean just �10,000 can be used for frontline services across the boroughs. This will not save Henderson Court centre in Hampstead or Great Croft centre in King’s Cross as they cost more than �200,000 each a year to run. Camden Council is due to stop funding them after March 2012.

Adult social care boss Pat Callaghan was “slightly disappointed” with the prescriptive nature of the funding but added that “the money saved from restructuring that is funded by the government can presumably be reinvested into frontline services”.