Magherafelt District Advice Services Limited is to shut at the end of the year, it has emerged.
It is understood there is no more funding available for the free community service which was set up eight years ago by the former Magherafelt District Council.
It employed a staff of 11 - four full time, two part time and five volunteers - and was operating from premises at Kirk Avenue, Magherafelt.
People travelled from Cookstown and Magherafelt areas to avail of the expert advice provided by the staff.
DUP Councillor Anne Forde confirmed that the service would be ending on December 31.
"It will have a major detrimental impact on the area," she claimed. "It will be greatly missed by the ordinary people of the area seeking independent advice on benefits. It gave people a first class service over the years.
"It is really needed now that the new universal benefit system is beginning to kick-in and people need help and advice to ensure they don't lose out."
Mid Ulster Citizens Advice Bureau, which receives funding from the local Council, has offices in Cookstown, Magherafelt and Dungannon.