The opening of the profit-making Community Legal Advice Centre has been controversial as it has put a question mark over the future of the Citizens Advice Bureau CAB), which has been in the city since 1939.

The CAB had to undergo radical changes after losing Hull Council's annual contribution of £700,000 despite a noisy protest on the steps of the Guildhall.

The contract was awarded instead to Sheffield-based A4e, which describes itself as "a market leader in global public service reform".

However, the CAB is still running, albeit in a slimmed-down form, and manager Lesley Thornley said there was sufficient demand for the service.

Increasing numbers of people have been having problems with mortgage arrears and trying to pay basic bills and for non-urgent cases there's a waiting list of up to three weeks. She said: "I think our point of view is that there are sufficient levels of deprivation and need for both services to work together. The Community Legal Advice Centre will provide some services that the CAB is unable to in Hull, mainly because funding for specialists has gone to the CLAC."

The CLAC, a joint venture between the council and the Legal Services Commission, will open its doors on October 20 at new premises in Essex House.

A4e signed a three-year contract last month, which will see it and Howells Solicitors provide specialist advice on a number of civil legal aid areas. The centre aims to take on 3,300 cases a year. Operating six days a week, including Saturday mornings, the centre will also offer outreach services in eight locations to improve access for some of the most vulnerable people.

Chris Peel, head of advice services at A4e, said: "We have been talking to various organisations and community groups across Hull since late 2007 in order to ensure we design a service that is focused on tackling local needs. Working with Howells Solicitors, A4e is very excited about putting those plans into action and offering quality, focused advice to the people of Hull."

Meanwhile from today the CAB is starting to move towards an appointments-based service. People can ring 224608 and will be offered either a call back for full advice, information through the post, a face-to-face appointment or a referral for specialist advice. On Mondays and Fridays it will also offer short face-to-face interviews. Ms Thornley said the number of volunteers had actually increased to 70, although there were only around half the number of paid staff. But it still had seven debt case workers as well as funding for a disability case worker.

However, there was still a threat Hull CAB would close unless it secured more cash. She said: "We have got a slight reprieve – we are using some of our reserves to try and keep going while we try to find additional funding. It is great we are still here but our future is not secure."

The CAB is also training local people in how best to manage their money as part of a pilot scheme operating in various locations across the city.

Emma Bergin, Hull CAB's financial capability tutor, said: "Having good budgeting skills can help people to avoid
problem debt and make a household's money stretch further.

"These sessions will show participants how to spend, borrow and save effectively.

"This is an important life skill but, given the current climate, more necessary than ever."