Council cuts hit Padley homeless centre in Derby
Managers at a Derby-based centre which provides help for homeless people said council budget cuts could force it to close.
The Padley Day Centre will lose its annual funding from Derby City Council in March.
The charity said its closure would force vulnerable people on to the streets.
Derby City Council, which has to make savings of £63m by 2015, said it would still support people at risk.
Chief executive of the charity Pat Zadora said: "We get £100,000 a year from the city council - that enables us to staff the hostel and to support people who are homeless.
"Our staff work with clients who come in, and deal with their issues - it may be debt, alcohol, drugs - it could be anything.
"The centre helps them to move on in their lives and start rebuilding a future."
She added: "If we can't find alternative funding - the hundred odd people who go through our hostel every year will be on the streets of Derby, with all of the problems that will bring."
Leader of the council Paul Bayliss said: "It's a very tough budget in terms of the cuts we've had to absorb by government, and we've had to take some pretty draconian measures and some tough decisions along the way.
"But, what we've tried to do is talk to people and minimise the harm to the city of Derby, while retaining as many of the services as we can."
He added: "We believe we've made the best choices, but we are not naive enough to think we've got it absolutely right.
"We know there are 250 people that could be made homeless [as a result of the cuts] and we've got provision in hand to solve that challenge."
The council said it - along with the county council - was working with a housing association to develop an outreach service, provide emergency accommodation and a move-on scheme.