HUNDREDS of care staff across East Lancashire are facing pay cuts of up to 40 per cent - and are reluctantly preparing to strike.

Proposals by Alternative Futures Group to cut wages and benefits for around 400 workers, who care for adults with learning disabilities and mental health needs, have prompted a furious reaction.

Union leaders have confirmed that a ballot for possible strike action is beginning, as funding for reablement work is slashed by £5.1million by Lancashire County Council.

Several staff who have spoken to the Lancashire Telegraph insist they have been told that if they do not sign reduced contracts by September they will be sacked.

One worker, who asked not to be named, said: “If people sign this deal then it will lead to them being made homeless - no-one can afford 40 per cent pay cuts.”

The workforce is also furious that lucrative severance deals, offered to managers and teams leaders who left last year, are now not being offered to remaining staff.

Former NHS staff, who worked for reablement services in Burnley, Pendle and Rossendale, and Blackburn, Hyndburn and Ribble Valley, have the most to lose.

The two teams were transferred to AFG in 2007 and 2008 and were given pay guarantees under trade union pay legislation. It is understood their contracts easily outstrip their AFG colleagues.

Tim Ellis, Unison regional officer, said: “People are hugely angry - as anyone who has heard these proposals would understand.”

Staff would be relucant to take industrial action, he added, but many faced severe financial hardship otherwise.

Steve Gross, the county council’s commissioning director, said: “These are difficult financial times and everyone involved in social care must ensure that services provide the best possible value for money.

"AFG, which provide services for people with learning disabilities on behalf of many councils in the north west, including Lancashire, have recently asked staff, service users and their families for their views about possible changes to the way the organisation is run.

“While AFG is an independent provider, we would of course welcome proposals to improve choice and value for money for local service users.”

AFG were unavailable for comment.