St George's Crypt in the centre of the city, which has helped thousands of homeless people, has been awarded £988,568 by a Government programme, it was announced yesterday.

The money will be used to refurbish the centre, almost doubling the amount of space accessible to its clients.

It will, for the first time, provide 15 individual bedrooms within the centre, see the creation of a contemporary cafe area and allow the community garden in front of the crypt to be completely redesigned.

A team from Leeds City Council submitted the cash bid in partnership with the crypt, with the aim of enabling it to redevelop its overnight service and centre.

The improvements will massively boost the centre's ability to act as a place of change and improvement for rough sleepers in the city.

The bid to the Government's Places for Change Programme was a joint effort between the Crypt and Leeds City Council. The £70m programme aims to help centres and other facilities for homeless people provide the best opportunities for their clients, which will help them move into work and a settled home.

The city council's executive board member for housing needs, Les Carter, said: "What a fantastic result for St George's Crypt. This money will allow it to make such a difference to the lives of people who, through no fault of their own, find themselves in need of help.

"By working so closely with partners in the city like St George's Crypt, the council can ensure that Leeds has first rate facilities that properly meet the needs of those they serve."

The chief executive officer of the Crypt, Gary Stott, said he was "absolutely delighted" to be awarded the grant.

He said: "In partnership with Leeds City Council, we have worked hard to build further on the excellent foundations of our work with homeless and disadvantaged people throughout Leeds since 1930.

"We want to provide the best services, the best facilities and the best prospects for our clients to develop a wide range of skills leading to sustainable opportunities for employment. This grant will do that for us – it is the most significant development in the Crypt for 50 years."

The Crypt currently provides crisis accommodation and services including provision of food parcels and a clothing shop which can be accessed by people in need.

It is open 365 days a year and the current accommodation provides 12 bed spaces, nine of which are in a shared area.

Following the successful cash bid, individual units will be created for entrenched rough sleepers and communal areas will be opened out to enable a variety of activities to take place.

Staff will work with service users to secure move-on accommodation. The centre will be transformed into a welcoming, non-institutional environment incorporating a cafe area, and space for meetings and training/skills programmes.

Programmes in art, food hygiene/preparation, gardening and construction will be offered. It is hoped the range of programmes and assistance for service users to secure longer- term housing, in addition to the considerably upgraded accommodation, will lessen the numbers sleeping rough in Leeds.