Council cutbacks and public sector austerity measures have left many lesbian, gay, bisexual and transgender (LGBT) services at breaking point, a new report suggests.

With more than half of funding coming from local or central government, many services have been reduced with organisations relying heavily on volunteers as staffing levels are cut.

London Metropolitan University’s study, commissioned by the TUC, found income from the public sector had fallen by more than a third across the capital’s LGBT voluntary and community sector between 2009 and 2013. The picture was found to be similar in other parts of the country.

The report said commitment to funding LGBT activities and services varied and ‘although some councils were reported to have made considerable progress in becoming “LGBT friendly”, others were perceived to be “dragging their heels”.’

TUC general secretary Frances O’Grady said: ‘LGBT services were already coping on a shoestring, receiving just 4p in every £100 of voluntary sector income. Some LGBT service providers now say they’re barely “staying alive” and only a minority are optimistic that their future situation will improve.

‘We are on the brink of a crisis with the financial reserves of many services running down and government plans for further rounds of austerity in danger of pushing them over the edge.

‘While Britain has made great strides for the LGBT community in some areas, such as the right to equal marriage, we can’t afford to be complacent. Prejudice has not yet been eradicated and it helps perpetuate problems like higher rates of homelessness and mental illness in the LGBT community. This means LGBT services remain vital, and are at times a lifeline for people who need specialist support and have nowhere else to turn.

‘LGBT services are funded from such a wide variety of national and local government sources that the complexity may be masking the true impact of cuts. The equalities minister, Nicky Morgan, must ensure the government does the work needed to see clearly the full picture and intervene where necessary to protect the vitality and reach of LGBT services.’