Citizens Advice is hoping that most of the 900 jobs it was expecting to cut will be saved as a result of the government’s commitment to continue the Financial Inclusion Fund for another year.

At the end of last month Citizens Advice – the umbrella organisation for the country’s 394 bureaux – announced it was preparing to shed 900 jobs unless the government was able to continue funding the Financial Inclusion Fund, a programme of debt advice provision in deprived communities.

The news attracted national media coverage as commentators pointed out that the forthcoming government spending cuts would make the services provided by Citizens Advice bureaux even more essential.

Last week the government promised a “cross-departmental examination” of CAB funding and on Friday Business Secretary Vince Cable announced that the Financial Inclusion Fund would continue for another year.

Cable said: “It’s vitally important that everyone has access to free debt advice. I am pleased to announce that my department will provide the £27m necessary to maintain the programme of face-to-face debt advice.” But he also called on other funders to support the charity too.

A spokeswoman from Citizens Advice said the charity was still getting to the bottom of the terms of the funding lifeline and working out how many jobs could be saved.  But she said it was hoped that “a significant number” of the jobs at risk would be retained, as most of the 900 identified as being under threat were based on the Financial Inclusion Fund coming to an end.