Church Action on Poverty (CAP) and The Children's Society are among the 20 organisations calling upon the Government to rethink its plans to reduce the amount of money available to vulnerable people in crisis situations.

Emergency assistance in the form of crisis loans or community care grants are given to people facing extremely difficult circumstances, such as women and children escaping a violent relationship.

In an open letter to the Guardian, the organisations are concerned about the impact of cuts to the funds from £67m in 2010-11 to £36m in 2013.

In addition to CAP, the groups sounding the alarm include Barnardo’s, Save the Children, and Family Action.

They fear that local councils already experiencing huge cuts will provide no or extremely limited support to people in need, or may replace cash handouts with support in kind, such as in the form of access to foodbanks.

They want Lords debating the social fund this week to ringfence funds provided to local councils for emergency support.

In their letter, they warn that crisis loans and community care grants are the “ultimate safety net for the most vulnerable in society”.

“The Government’s own research shows some local authorities expect the extra funding will be diverted to plug gaps elsewhere,” they said.

“We fear these changes could be catastrophic for some, such as those who resort to illegal moneylenders or high-cost credit, or women who return to live with a violent partner because they have no money to furnish another home for their children.”