A CUT of £32,000 to voluntary services in Redbridge was approved despite opposition attempts to have it thrown out.
Voluntary groups have raised fears about the effects of the cuts on a sector that is already facing greater demands because of cuts elsewhere.
Cllr Julia Hughes said that the increase last year in the criteria for social care meant that more people now needed help from voluntary groups, and that there was no indication where the new cut would fall.
She added: "Will it be the faith groups, the elderly, children and adults with disabilities, the mentally ill? I'm concerned about how transparent that choice will be."
Cabinet member for adult social services John Fairley Churchill defended the cut and said that the borough had won a share of a £0.5 million grant for the voluntary sector which would ease the blow but added: "Some of the groups in this borough thought it was their God-given right to be funded each year."
Labour group leader Elaine Norman warned of the effect on smaller groups adding: "That money will not be able to use to shore up these groups that will lose because those groups have to provide a pan-London service before they get it.
"Don't sit there and say you are the be all and end all for this borough because you are not."
Cllr Fairley Churchill said: "The idea of voluntary sector organisations in splendid isolation harks back to the days of gentility when my grandmother was a girl. We want to encourage cross-borough working."
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