A 25% cut in council funding will have a severe impact on the homeless in Blackpool, according to the head of a homeless charity in the town.
Chief executive of Bay Housing Association, Paul Greenwood, said: "It would have a serious effect."
Councillor Peter Collins, who is in charge of young people's services at Blackpool Council, said the authority had little choice due to the £27m cuts.
He said the authority would try to help the town's homeless where possible.
"Given the severity of the cuts to the Blackpool budget we had to look at the overall picture for each of the departments especially in the children and adult services," he said.
"We will do our utmost to make sure that the most vulnerable aren't affected but obviously we can only take it on a case by case basis.
"We are there to still deliver the best service we can given the cuts we've had to implement."
Funding at Bay Housing Association, which offers temporary accommodation for vulnerable young people and helps them get a job or training, is due to run out at the end of next month.
Mr Greenwood said the reduction in funding put its future in jeopardy.
He said: "It would have an effect on the people who you could admit.
"You would have difficulty if your staff had been significantly reduced in coping with people who we take at the moment who have multiple needs. It wouldn't be possible to deal fully and efficiently with those."