A counselling and debt advice centre in Powys could close because of a lack of funding, it has emerged.

Bro Ddyfi Advice Centre in Machynlleth, which helps more than 1,000 people every year, said it would struggle to survive without more funding.

The centre claims it had received no support from Powys County Council despite helping to collect unclaimed council tax and housing benefits totalling £90,000 for the authority over the last few years.

But the county council, which itself runs a Powys-wide Citizens Advice Bureau (CAB), said it could not afford to fund a “rival” independent centre.

Michael Williams, a committee member for Bro Ddyfi Advice Centre, said the centre was experiencing “extreme difficulties”.

He said: “We opened the advice centre back in 2002 because we believed that Powys CAB wouldn’t provide the town with as much of a service as we as a town would have liked.

“The centre has helped more than 1,000 people in the last year with problems including homelessness, income tax, faulty goods and of course debt.We as a town just couldn’t afford to lose it.

“A lot of residents rely on the centre to help them out as it provides a five day service every week whereas the Powys CAB only offers two days.”

A spokesman for Powys County Council said: “The Powys CAB was established in 2002 in order to absorb the five separate bureaux into a countrywide service.

“However the centre in Machynlleth pulled out of plans and became independent.”