Croydon's meals on wheels services is being put out to private tender in the latest cost-cutting measure from the council.

The town hall strongly denied the service which delivers hot food to vulnerable residents, many of them old and unable to cook for themselves, was under threat.

But Croydon Council admitted a private company could be asked to replace the network of volunteers which currently runs the service.

That would mean the council make savings on the money it spends on meals and on managers who organise volunteers and deliveries.

The move is part of the council's budget slashing drive which has already seen £16million withdrawn from services.

The Conservative administration is attempting to claw back a budget deficit its puts at £37million so it can keep its pre-election pledge of low council tax rises.

Last week we revealed how the council was also slashing the grants it give to local community organisations.

A spokesman for the council said: "The council has no intention of closing down the meals on wheels service. In line with council policy and competition legislation, it is necessary for us to put the services out to tender when the existing contracts are to be renewed.

"The tendering process presents the council with an opportunity to ensure that we continue to provide a service that is cost effective as well as one that is of a high quality and offers clients the service they have said that they want."

The spokesman added: "While it is too early to say what the outcome of the tendering process is, we place great value on the good work of the existing volunteer network and would hope that they will continue to play a significant role in supporting service users living in the community."

Croydon meals on wheels volunteer driver Terry Frost said closure of the service would be disastrous.

"I have heard about these rumours for the last year," he said, "First I heard that the old Labour council was thinking about closing us down - but because of overwhelming support they made a u-turn.

"Now the Conservatives are in power I've heard they are thinking about starting the same thing again. If this is true it would be a massive mistake. We are more than just a delivery service we talk to the elderly people and give them some much needed company."

Brian Diamond, manager of Croydon's meals on wheels service, said: "The rumours haven't really affected the morale of our volunteers because the whole saga has been going on for around 18 months now. As far as we are concerned the services have been put out to tender and that's as much as we know."