HYNDBURN MP Greg Pope has vowed to investigate after a council decision to axe relocation grants for people living in part of the Project Phoenix area.
People living in phase one of the project will receive a non-repayable cash sum of up to £30,000 to help bridge the gap between the market value they will get for their old home and the cost of buying a new one.
But the council has said people living in phase two will only get a loan which would be repaid when the house owner either sells the property or dies.
This week, Mr Pope said: "I just want to make sure that everyone living in the area gets their fair share.
"I am not attacking the council as I know it is just trying to do its best in difficult circumstances. But there is no ethical reason why people living in phase two should be offered less than those in phase one. This is a complex subject and it needs to be handled in a sensitive way."
Hyndburn Council bosses, however, defended the decision to axe the phase one-style loans.
Councillor Tony Dobson said: "There won't be any monthly repayments to make with the equity loans and people in phase one are not getting a better deal than those in phase two.
"The loan will only be repayable when they either die or sell their house, but they can choose to re-pay it at any time."