Young mothers and men in employment will be most affected by a $140,000 budget cut to Literacy Aotearoa Dunedin's intensive literacy programmes, co-ordinator Ana Good says.
The Government cut funding to its intensive literacy and numeracy fund from $15.3 million to $13.9 million this year.
The fund, previously known as the Foundation Learning Pool, pays for courses run through providers.
The country's main literacy umbrella group, Literacy Aotearoa, would receive $2.18 million rather than $2.78 million.
While the overall organisation was not threatened, the impact would be felt at a community level, with programmes ceasing in Auckland, Wellington, Dunedin and the Waikato.
This meant Literacy Aotearoa Dunedin would not receive its annual funding of $140,000 which helped about 60 people complete an intensive course, Ms Good said.
Three groups were taught by 10 tutors about writing, reading and spelling, on a weekly basis.
"We are right back to sounds," she said.
A men's group, women's group and whanau group was held at Forbury School.
Employed men, unemployed women and young mothers were the most common students the service helped.
The impact on these people would be "huge", Ms Good said.
"They can't access other programmes because of their literacy skills.
"They won't go to polytech - it's often too daunting for them."
Because the learners had "very high needs", she would "load up the courses with tutors" to ensure each student was given the "intensive" help they required.
"We just feel that if people don't come to us, there is nowhere for them."
When the programme ended in early December, jobs would inevitably be cut but other programmes would continue on a "much smaller" scale.
"We still get funding from the national office to run," she said.
On this smaller scale, about 75 students would receive help through more basic programmes.
Literacy Aotearoa chief executive Bronwyn Yates hoped the funding process would be reviewed and changed, otherwise it could negatively impact on literacy provision across New Zealand.
Dunedin MP Clare Curran wrote in a Labour blog she was "aghast at the audacity" of the funding cut after the Government focused on "allocating funding for real literacy and numeracy training".
"Most of the people who attend these courses are in some sort of work, but need help to get a better job or manage in their existing one."
