A charity is being forced to cut costs and staff as its struggles to cope with the impact of the recession.

St Dunstan's, which cares for blind ex-servicemen and women, has already reduced its annual budget of almost £22 million by £2.6 million but says it needs to do more if it is to keep developing services to meet demand.

The charity, which has its flagship care home at Ovingdean, Brighton, currently supports up to 5,000 people around the country compared to 1,200 ten years ago.

It has done an extensive review of the way it works and brought in several cost-saving measures while also boosting its fundraising.

Now it has been forced to warn staff jobs could have to go while also introducing a recruitment and pay freeze.

One of the last surviving First World War veterans, Henry Allingham, who died last year at the age of 113, spent the last years of his life at St Dunstan’s in Ovingdean.

On average the centre cares for 100 people a day. Approximately a third of this number are permanent residents, like Mr Allingham, who receive nursing or residential care and another third are on holiday or receive respite care.

The remaining people live nearby and access the services daily.

Almost 200 people are employed at Ovingdean but the charity cannot say at this stage how many jobs could go.

To support the charity visit www.st-dunstans.org.uk or call 0300 1112233.