Warning of 19 job losses in Citizens Advice Bureau cuts

A branch of the Citizens Advice Bureau in the Black Country is to lose funding for several key services within weeks as it faces up to a 50 per cent budget cut, despite bosses warning they are overwhelmed by unprecedented demand.

CAB bosses in Wolverhampton today warned the service is heading toward its "worst case scenario" of 19 full-time positions being lost, while 39 of 57 employees have been issued with "at risk of redundancy" notices.

It does not face threat of total closure, but funding will end in March for a number of core services, including a face-to-face debt advice service provided through a fund to support deprived areas. The debt service catered for more than 1,000 people each year.

An increasing number of paid legal experts will be replaced by volunteers.

Chief operating officer Jeremy Vanes said: "We will be more than halving the number of complex debt cases we can run. We will have to concentrate more on assessing the advice needs of clients and encouraging them to pursue their own remedies with our guidance, rather than us completely handling their case."

In 2012 further proposed cuts to legal aid resources will mean that the Wolverhampton branch of the CAB has lost half of its funding over 12 months — despite having the busiest period in its history. Mr Vanes added: "This would effectively put our service back 20 years in terms of the casework and in-depth free support we offer to thousands of local people annually.

"At a time of unprecedented welfare need, it is very hard to understand why this is happening.

"The CAB trustees have for a year made it clear to local politicians, public service officers and our own staff, that the funding picture for 2011 looked challenging on a scale never seen before.

"Wide consultation has taken place with all stakeholders and we have an outline plan for running a smaller but still wide ranging service. What has taken us aback is both the lateness of some of these government decisions, and the scale of our very worst scenario all coming true."

The Wolverhampton branch of the CAB, like several in the Black Country, has experienced huge demand throughout the recession.

In 2009/10 the Wolverhampton CAB's workload increased by 57 per cent on the previous year as 25,900 inquiries were dealt with — up from 16,500.

Wolverhampton city council is continuing to fund the CAB. Existing clients are advised to continue visiting their local centre.