The number of people sleeping on the streets of England has dropped dramatically, new figures published on Saturday have shown.

According to the Rough Sleepers Unit the number of people on the streets has dropped by over 3000.

The drop puts the government on target to meet its commitment to reduce the number of rough sleepers by two-thirds by 2002.

The unit, which reports directly to the prime minister, says that over 2,500 rough sleepers are now being given assistance to move off the streets and into education, training and employment.

Louise Casey, the head of the Rough Sleepers Unit, says: "Because of the hard work and determination of the public, charities, local authorities and others, many vulnerable people have now come in from the cold. It is vital that all our efforts continue to ensure that anyone who needs it has an alternative to a doorway."

The report finds that the number of people sleeping rough has dropped by over 60 per cent over the last three years.

Around 700 people now sleep rough in England - down from the 1998 high of nearly 2000.

London remains the UK's homelessness blackspot, with nearly half of all England's rough sleepers living in the capital.

The government says it will continue to tackle social exclusion, stressing that getting people off the streets is simply the first stage of a longer-term process.

Lord Falconer, the housing minister, said: "For many people the move from sleeping rough on the street marks the beginning, not the end, of the challenge they face to rebuild their lives. We must help them to take the steps needed to become active and equal members of the community."

Whilst the reduction in the number of rough sleepers has been welcomed by homelessness groups, they have warned that the problem is wider than many think.

Ceri Sheppard, the acting director of the Homeless Network, said: "The news that the RSU has reduced the number of street homeless people is warmly welcomed by the homelessness sector.

"We must continue to reduce the number of people sleeping rough, ensure that former rough sleepers do not return to the streets and have resources in place to deal with the flow of newly-homeless people who will continue to end up on the streets."

Sheppard believes the government must do more to examine the link between housing, drugs, crime, health and community care and develop a strategy for those leaving prison and those discharged from the army.

Shaks Ghosh, the chief executive of Crisis, said solving homelessness was not as simple as reducing the number of rough sleepers.

"Street homelessness is the most visible form of homelessness, but it is a much wider problem. There are thousands of people living in B and Bs, sleeping on friend's floors and living in hostels who have no contact with services and cannot break the cycle of homelessness. It is time to develop a long-term strategy aimed at ending all forms of homelessness."