LIVERPOOL’S school uniform grant could be saved by scrapping a 'secret' £750,000 pot of cash controlled by the city council leader Joe Anderson.

Liberal Democrat opposition leader Paula Keaveney called for the move and said it was wrong to continue operating the City Leader’s Fund when front line services were being axed.

The city council will vote on £16m of cuts tomorrow, which include the scrapping of school uniform grants for 24,000 children.

The grants cost the council £738,000-a-year. Cutting it will mean parents on low incomes will no longer receive £20 to help buy a uniform for primary school children or £40 for secondary school pupils.

Councillors will also vote to close three libraries, reduce opening hours at 17 others and cut 76 jobs.

But officials must still find another £4m to plug a £50m hole in next year’s budget.

Cllr Keaveney said: “The school uniform grant is a relatively small part of the overall council budget but is very important for low income families who often live in the most deprived parts of the city.

“The inability to have a proper school uniform would be a major cause of inequality and could affect pupils’ mental wellbeing.

“This in turn could impact on educational achievement and therefore future prospects.”

She said just £266,000 had been spent from the fund this year. And while Cllr Keaveney admitted the fund did have some “merit” – because it had been used to fund some useful things in the past – she insisted it was time to scrap it.

But Cllr Anderson said: “This fund – originally set up by the Liberal Democrats – is there for contingencies.

“It’s been used to help fund vital things like the employment of 650 apprentices, services to keep youngsters out of trouble and to help out voluntary groups and charities.

“Withdrawing school uniform grants has been a very painful and heartbreaking thing to do. But it’s Cllr Keaveney’s own party in government which is forcing us to do it. She should complain to Nick Clegg to return some of the £50m they’re cutting.”