A northern city such as Bradford could see a tented community within the next 12 months as desperate people struggle as the Government doles out massive benefit cuts, a charity boss has warned.

David Wilford, the chief executive of the Holme Christian Community, which provides Children’s Day Care, Employment and Skills Training and a Welfare Debt and Advice Service, said that his funding had been slashed by nearly a third in two years from £1 million to more than £600,000 and it was becoming increasingly reliant on volunteers and donations from the public.

He said the situation in the US, where 21 tented communities have been formed by people unable to afford to put a roof over their heads, could realistically be replicated here.

“I think Britain is not far away from the first tented community,” said Mr Wilford.

“Northern cities are being disowned by the Government. Another £10 billion of welfare reforms has been announced, so it will only get worse.

“I see middle class people on £40,000 a year struggling and living on their credit cards, so what about those living on benefits?

“Demand for our services is higher than it has ever been.”

The social enterpise, whose centre is based in Holme Wood, Bradford, sees up to 1,000 people a week.

They had 50 volunteers two years ago and now have 90, while the numbers of staff have dwindled from 50 to 32.

Mr Wilford said that cities and towns such as Bradford, Liverpool and Blackburn were at the mercy of a Government which was cutting benefits such as Working Tax Credits.

It was reported last week that couples with children will have to work for 24 hours a week between them, rather than the current 16, to qualify for working tax credit. Labour has argued that many families will lose out with the changes.

Mr Wilford said: “The welfare reforms are making life difficult and more and more people cannot get help because of the changes.

“The Government is all about people getting off benefits into jobs, but the jobs are not there.

“The cuts are on the most impoverished who need the help and more people are going to be on the streets.”

Official figures show that 10,475 families in Bradford could be hit through changes to Child Tax Credits and Working Tax Credits.

But Chief Secretary to the Treasury Danny Alexander has defended the cuts saying the Government had taken some “very difficult decisions” on tax and benefits but insisted they had been “fair”.