Hundreds of thousands of pounds confiscated from drug traffickers has been channelled into tackling abuse.

The Home Office gave more than �340,000 to two groups in London.

The cash, which was seized from drug gangs, have been distributed by the government's Confiscated Assets Fund.

Home Office minister Bob Ainsworth said the cash was designed to help people get away from the cycle of drugs and crime.

'Treatment works'

He said: "There is strong evidence from a number of research studies to show a clear link between heroin and crack cocaine misuse and crime.

"There is also good evidence to show treatment works and is cost effective in achieving reductions in drug use, offending and improving the health of drug users."

A scheme that helps refugees and asylum seekers who practice substance abuse has been given �235,000 from the fund.

Another scheme, also run by the Greater London Authority, has also received �105,000 to plan anti-drug schemes.

The two projects were initiated by city mayor Ken Livingstone, through the London Alcohol and Drug Alliance.

�8m distributed

Mr Livingstone said: "Prior to my election I promised to lead an initiative to use the confiscated assets of drug dealers to invest in drugs rehabilitation and awareness programmes.

"The funding that has been announced will do just that."

Government figures show that by 2003-2004 �1bn will be spent each year to tackle the problem of drug use.

Mr Ainsworth also explained that for every �1 spent on treatment, �3 is saved on criminal justice spending.

The Confiscated Assets Fund was established in 1999. Up to �3m was allocated in the first year, with �5m last year. About �7m is expected to be allocated this year.