Ministers have failed to find a new home for a family of badgers that have been burrowing under people's homes.

The Department for the Environment, Food and Rural Affairs (Defra) said last night a forum investigating the problem of the Saltdean badgers had found no alternative solution since a decision to cull the badgers was suspended last October.

Defra's announcement has sparked fury among animal welfare groups fighting to protect the badgers and residents who blame the animals for eroding the earth beneath their homes and gardens.

Many are incensed the Government forum has not found the badgers a new home, despite months of meetings, reports and surveys.

The department has also been accused of ignoring proposals put forward by the National Federation of Badger Groups (NFBG).

One suggestion was for artificial setts to be constructed.

Elliot Morley, animal health and welfare minister, said he agreed the best possible solution was for a new sett to be found but the working group was still at a loss to find one.

He said: "This remains the case, despite considerable efforts by the NFBG and others."

This is despite offers from people living near the badgers' home to build setts in their gardens, allowing them to move away from residents who want them culled.

Brighton and Hove City councillor Heather James, who has been working closely with the NFGB, said she had spoken to people who were happy for the badgers to live with them.

She said: "We did a survey of all the householders in the area and several people were quite willing to have an artificial sett in their garden."

Mr Morley granted the original licence to dispose of the badgers last October, a move that angered animal lovers all over Britain and led to street demonstrations outside the homes of residents who wanted the badgers killed.

Two female badgers were killed in traps laid by officials from Defra after residents in Saxon Close, Saltdean, complained their properties were in structural danger from their burrowings.

It was the first licence issued by a government allowing the culling of badgers for the sole purpose of protecting properties.

Badgers are a protected species and can only be killed if a licence for their destruction has been issued by Defra.

Mr Morley's words have infuriated Dr Elaine King, chief executive of the NFBG.

She said Defra had discussed alternatives highlighted by her organisation earlier this week and officials at the department had even said they liked her proposals.

A spokesman for Defra confirmed yesterday the department had received a report from the NFBG but refused to discuss it further.

He said the department would make another announcement in the spring but the badgers were likely to remain until at least then.

A statement from Defra accompanying the minister's comments said: "Defra continues to engage constructively in exploring how best to resolve this matter quickly and satisfactorily, although a detailed workable solution has not yet been put forward."

Residents who first obtained the licences for the badger cull, saying the badgers were damaging properties and gardens in the secluded close, were dismayed the badgers would now stay even longer because no solution had been found.

One, Sandra Bennett, said: "We have always done everything properly, working with Defra and the badger protection groups.

"This latest statement will not solve anything.

"If another sett is found for these badgers near here the badgers will just find there way back and we will have the same situation over and over again."

The failure of the forum to come up with a solution also angered those involved in demonstrations last autumn against the cull.

Trevor Weeks, of the Saltdean Badger Campaign, said: "As far as we are concerned, the setting up of a forum has been a complete waste of time.

"This was an opportunity to find another sett where the badgers could be happily resettled, which was our suggestion in the first place."

Report by Sam Thomson, news@theargus.co.uk