A 21-bed hostel for the homeless in Leeds is set to close.
Staff at Pennington Place hostel were told this week that the Woodhouse centre would be closing at the end of April.
Leeds City Council said the closure was the result of a review of services for homeless people in the city, in which users said they would prefer self-contained accommodation to hostels.
However, a staff member, who did not wish to be named, said workers had been told it was closing because “the council has withdrawn funding”.
The local authority needs to make more than £100m in cuts over the next two years.
Pennington Place provides 24-hour emergency accommodation for 21 single homeless men with support needs.
The staff member said the centre was always full and they regularly had to turn people away.
They said: “When that goes there’s going to be a lot more people sleeping rough.
“It’s diabolical that they’ve cut the funding for it. It’s the people that are most vulnerable that they are hurting.”
The centre is run by Leeds Housing Concern (LHC), which is mainly funded by Supporting People, as well as social services and private funders.
A council spokeswoman said: “We have reviewed the services for homeless people we have in Leeds, and as a result a number of changes are being made to services. This includes the closure of Pennington Place hostel.
“As part of the review we consulted with people using services.
“People told us that they would prefer self-contained accommodation rather than using a hostel.
“Hostels do provide short-term housing, but are not a longer-term housing solution.”
She said: “Pennington Place hostel will be closed while other services will be remodelled.
“We will ensure that there is still access to emergency accommodation services for people who need to use these services within the city.”
The 42-bed Ladybeck House Hostel, which provided short-term emergency housing in the city was closed by the council a year ago.
And in 2011 the 31-bed hostel for single homeless women, The Hollies, was closed along with the Richmond Court hostel.