A Ruthin extra care housing scheme has been handed a £5m boost by county councillors.

Denbighshire council’s cabinet agreed the cash injection during Tuesday’s virtual meeting over Zoom.

The money is to help fund the building of Phase 2 of the Llys Awelon scheme on School Road in the town, in partnership with social landlord Grwp Cynefin.

The local authority’s figures claim there will be a net saving of a little under £800,000 a year by making the capital investment now – an outlay taking a little over six-and-a-half years to pay for itself, it says.

The savings are generated by reduced utility costs, estimated at £42,000 per annum, and reducing the use of council placements to private residential care providers costing an average £640.08 per person, per week.

The existing lease between the council and Grwp Cynefin will be terminated and a new longer lease for the whole site will be entered into.

The extension will house 17 one-bed, 17 two-bed apartments and one guest suite, meaning space for 51 full time residents in the new “green facility”.

The scheme will benefit over-65s who need extra support, said a report handed to cabinet members, and 24-hour cover will be provided for residents.

It added: “The existing scheme has a healthy waiting list and supports the need for this type of housing.”

Denbighshire council jointly commissioned the 21-unit first phase of the development in December 2010, with Grwp Cynefin. It adjoined Awelon care home and shared communal facilities.

The care home and Canolfan Awelon closed earlier this year, in preparation of the second phase – with Awelon care home and Canolfan Awelon ultimately due for demolition.

Planning was granted for the new residential building, which lies within the Ruthin Town and Llanfwrog Conservation Area, in April this year.

Denbighshire council’s report said locally sourced materials will be used and the aim is to get a Passivehaus (eco friendly) classification for the new building.

Funding for the scheme had already been accounted for in the authority’s budgets but it still remained for cabinet to rubber-stamp the deal before work could commence.