Clare Reynolds, a clinical supervisor at the charity, told the LDRS she feared there would be no help available to children going through the toughest time of their lives.
“The NHS says there are other options available, but that’s not what schools are telling us,” she said.
“They are devastated that we might have to close. We are the only service that goes directly into schools, including after the death of a student or staff member.
“It doesn’t make sense financially either, as it will put more strain on the NHS’s services. We can do a lower-level intervention before grief has escalated into mental health problems.”
The charity, which is based at Lincoln’s Carlton Centre, employs nine qualified counsellors and offered over 1,000 free sessions last year.
Reynolds said she hoped LPFT would reconsider, or that other funding could be found from businesses.