Providence Row, a homelessness charity, is urging the Government to use the Budget on March 23 to slow down its cuts.
The organisation believes that the cuts could result in hefty spending in the future.
Lisa Harrison, acting chief executive of the London-based charity, said: "Over the next few years many vulnerable people will be hit by a triple threat of rising rents, lower housing benefit and the loss of benefits under the universal credit system if they do not go into work - all leading to a very real threat of homelessness.
"The people we see want to work but are often simply not able; they have other barriers to overcome first such as physical or mental health problems.
"The Government has pledged to protect the most vulnerable in society and slowing down the introduction of these cuts could achieve that.
"Too deep too soon might well mean an increase in homelessness, paired with a reduction in funding for those that help the most vulnerable in our society."
Providence Row has said that a rise in homelessness would cost the taxpayer and the state more as the Government tries to reduce the deficit. The charity highlighted homeless people’s limited access to local GPs which often resulted in minor illnesses becoming major ones, and therefore expensive treatments in A&E.
Another expense is emergency accommodation, with it costing more than £400 per week to house one person in a hostel. The charity warns that this figure is set to rise due to a lack of affordable private rentals for people to move into.
Providence Row currently sees up to 100 people per day but is anticipating greater numbers if all proposed cuts go ahead. For more information about the charity go to www.providencerow.org.uk.
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