The Immigration Advisory Service, a charity that gives telephone advice to 36,000 clients and opens 7,000 appeal files every year, went into administration over the weekend.

Cuts to legal aid are thought to be one reason for the charity’s financial problems.

According to its 2009 annual report, the IAS employs 372 people.

A Legal Services Commission spokesman said: ‘The IAS’s decision to go into administration is theirs alone.

'During recent stewardship activities the LSC raised concerns around financial management and claims irregularities, which prompted IAS trustees to conclude that the organisation was no longer financially viable.

‘Our priority now is to work closely with IAS and the administrators to ensure clients of IAS continue to get the help they need, whilst safeguarding public money.

'We are now identifying alternative advice provision in the areas affected and arrangements for case transfer will follow as soon as possible.’

The IAS has not yet issued a formal statement and was not answering the telephone this morning.

The Law Society has warned that thousands of clients will be without representation.