Nearly a quarter of advice charities are in danger of closing down as a result of funding cuts, according to a new report.

Twenty-two per cent of charities in the sector say they are facing closure, while two-thirds report they are advising fewer clients, another third say they have shortened their opening hours and nearly half have cut frontline adviser jobs.

The report, produced by campaigning organisation Justice for All and released on Tuesday, follows significant cuts to the advice sector and the subsequent injection of short-term funds to plug the gap by government since last year.

While struggling with finances, 88 per cent of advice charities said they had dealt with more requests for help last year and four out of five expect to be unable to deal with as many clients in the coming year.

The report calls for more money to be put into the sector, and for that which is available to be better spent. “There are several short-term funding streams available to advice charities from different government departments, with no apparent co-ordination between them,” it reads.

Justice for All calls on the government to sync up the monitoring requirements of the different departments to reduce the bureaucratic burden faced by the cash-strapped charities.

Shadow charities minister Gareth Thomas said that the results of the survey of advice charities proved that Prime Minister David Cameron and Chancellor George Osborne are “out of touch”.

“Cutting taxes for millionaires means less funding for local advice agencies that help the needy, the destitute and the vulnerable get access to the support they need,” said Thomas.