The City stands to lose $278,000 in State funding for financial counsellors, which it has provided for struggling individuals and families for more than 30 years.
The State Government will save close to $9 million a year after announcing the funding cut earlier this month.
Mr Brereton said the State was targeting a vulnerable minority.
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READ NOW“In a time when there is increased financial stress, people losing jobs, particularly in the mining sector, it seems shortsighted to remove a highly valued service that maintains the very fabric of our community, families and children,” he said.
Mr Brereton said the cuts would have an immediate impact on the mental health of service users.
“This is an easy option for government as the people most affected by the removal of the service have no collective voice,” he said. “The Government needs financial counselling itself, as the short-term savings, will certainly result in increased costs on other systems and personal costs to thousands of families across the metropolitan area.”
Stirling Mayor Giovanni Italiano said he was shocked by the decision.
“Families in financial stress experience family violence, breakdown and some people will develop mental health related illness as they will see no way out,” he said.
Mental Health Minister Helen Morton said funding needed to focus on support services that promoted the safety and wellbeing of at-risk children and families.
“I have asked the department to develop a metropolitan-wide model, which could comprise face-to-face counselling, a telephone helpline and web chat services,” she said.