A mental health support charity in Bridport fears it could lose thousands of pounds after its assistance was withdrawn.

Moving On, a social club and support group for West Dorset residents recovering from mental health problems, was established in 2006.

The group said Dorchester-based support group Dorset Mental Health Forum agreed to provide assistance to Moving On in 2008.

As part of the agreement, the Forum offered a range of help to Moving On including providing public liability insurance cover, training and guidance for the charity’s facilitator and volunteers, assistance with travel expenses and help with grant applications.

But Peter Tobutt, chairman of Moving On, said the agreement was cancelled via email on December 2, ‘without prior warning’.

He said: “Just before Christmas, Dorset Mental Health Forum advised Moving On by email, without any prior warning, that they will be withdrawing all support.

“The agreement said that it could only be changed with the mutual agreement of both parties.

“It has come out of the blue and has created financial problems for the next financial year as the group will have to pay for its own insurances from April, which could be a four-figure sum. In addition, it creates employment and supervision issues for our facilitator, together with training implications for our volunteers, and could threaten the viability of the group.”

He added the decision was a shock and said: “Whilst we accept the Forum has taken similar action with support groups in Blandford and Sherborne and is under severe financial pressure, this does not excuse the lack of consultation and the breaking of the agreement without prior warning.

“We would have liked to have further discussions but they have made their decision now so it seems as though that’s it,” he said.

Cllr Michael Bevan, champion for mental health services at Dorset County Council, said: “Dorset County Council regards mental health services it commissions from the voluntary sector as vital in supporting people recovering from mental illness.

“Despite a difficult financial climate, the amount of money available for mental health projects has remained exactly the same and there have been no cuts to the budget.

“The existing contracts were recently revised and re-tendered to ensure they benefit as many people as possible and achieve greater impact and better value for money.

“The Moving On group was funded by the Dorset Mental Health Forum directly from funds raised by the Forum.

“It is not appropriate for Dorset County Council to comment further.”