Ms Forbes said almost two-thirds of those who found work again through the Dundee employability partnership were helped by Deap.

BBC: Scheme for jobless faces cash cut

Deap, which has been running for 11 years, also receives money from the Big Lottery Fund and One European Social Fund.

BBC: Scheme for jobless faces cash cut

Ms Forbes said they had not been given a clear reason why Deap, which has 20 staff, was losing the money.

BBC: Scheme for jobless faces cash cut

Ms Forbes said that because of the financial situation, Deap was also advising an increasing amount of people who were out of work for the first time in their lives.

BBC: Scheme for jobless faces cash cut