Financial Counselling Hunter Valley Project, which has been government funded since the mid 1990s, had faced an uncertain future after the ­government announced earlier this year that the organisation’s funding would stop at the end of September.

But the government announced on Friday that it would continue funding for the service, which has offices in Maitland and Waratah, for an extra three years.

The non-government organisation is a charity that provides free financial counselling to the most vulnerable members of the Hunter community.

The funding cut would have also put 11 jobs at the service at risk.

Project manager Maria Hatch said it was thrilling to hear on Friday morning that the organisation’s future had been secured for the next three years.

“We’re extremely happy,” she said.

“We don’t know what the change has been for the government [to backflip on the funding cut].

“We have been stressing a bit but our clients will be thrilled that the funding will continue.”

Hunter Labor MP Sonia Hornery said the announcement would prompt a sigh of relief for many Hunter residents.

“People are referred to them via ­various sources, including Centrelink and a number of agencies – anyone can refer clients to them,” she said.

“Trained counsellors assist people to avoid bankruptcy, help to prioritise debts, give options to avoid or curtail legal action. 

“This announcement means the service can continue to help the most vulnerable people in our community.”

More than 36,000 people received financial counselling across the state in the 2013/14 financial year, from ­organisations similar to Financial Counselling Hunter Valley Project.

The Mercury reported last month the government had decided not to ­continue to fund Financial Counselling Hunter Valley Project beyond the end of September, after a review by the Department of Finance.

Similar decisions to discontinue funding for free financial counselling services were also made in Queensland and Western Australia in the past year.