Low risk offenders who have been released from prison early and suspects awaiting trial are being housed on Prescot Road, by St Helens town centre.

The four-bedroomed property was bought by Clearsprings - a property management firm contracted by the Government to provide special bail accommodation schemes.

Those who have been released before the end of their sentence will have a curfew to remain at the property. They will also be electronically tagged so the authorities can monitor their movements.

The hostel, which opened in December, is within walking distance of Rathlee Nursery School, Daisy Bank Day Nursery, St Teresa's Primary School and three dance clubs for young children and teenagers.

Council chiefs have known about this scheme since last June but its existence only came to light recently when nearby residents started to become suspicious about the property's occupants.

West Park ward councillor Marie Rimmer held a meeting on Friday (August 1) where more than 100 angry locals turned up to complain.

She said: "My first knowledge of there being any problems relating to the property was when my constituents raised the issue.

"My constituents and I believe that we should have been told. The council has said that we do not have the right to know. They could have put their objections forward when the Ministry of Justice first told them that a bail accommodation support scheme was going to be launched in St Helens."

A spokesman for the residents said: "We are furious at the deceitful way this has been foisted upon us.

"People are concerned at the wide-ranging implications of this scheme, not least the safety of the public and their property.

"The mix of offenders at this hostel will change every few weeks, creating a volatile situation contrary to the Government's declared aim of 'improving public safety'.

A council spokeswoman said local authorities did not have the power stop the schemes - which are headed by the Government.

She said: "It is regularly monitored by a number of agencies including the police who, to date, have no issues with the accommodation or the people using it."

A Ministry of Justice spokesman said: "Clearsprings provide private rental homes in the same way as any other landlord. They are not hostels.

"More than half of those on the Bail Accommodation Support Scheme (BASS) are on bail. Others on the scheme are on home detention curfew, and they are assessed as low risk before entry, monitored during their stay, and are liable to recall to prison if they break the terms of their release.

"Defendants who pose a risk to the public will continue to be held on remand."