The programs, which provide social and community activities and supervision for disabled adults, currently cater to 28 clients.

Those clients have been told they will need to find another provider from next year.

WDEA Works chief executive officer (CEO) Barrie Elvish said the introduction of the National Disability Insurance Scheme (NDIS) – which came to the south-west in October – had influenced the decision.

“This is not a reflection of staff performance or their professionalism,” he said.

“It’s because of the harsh reality that the costs to provide community day services, utilising the existing and planned facilities the organisation has, combined with the funding uncertainty under the NDIS, are too great for the organisation to bear.”

The organisation took over the running of the programs from disability service provider Vantage in 2011.

Under the NDIS, clients will be able to choose from other disability service providers.

Mr Elvish said specialist providers were better placed to manage the care of disabled people in a “quality, up-to-standard environment”.

“We have also been able to gain from them reassurance that, as much as possible, they will consider employing our people to help them meet the inevitable growth in client numbers,” he said.

The CEO said his organisation would have needed to spend millions of dollars to bring its facilities up to standard for the community day services.

“We have had to accept that providing community day services in quality environments, and the associated financial demands to do so, would potentially place a disproportionate financial cost on the organisation,” Mr Elvish said.

“Given this is such a small, albeit important, part of what we do, and that it’s removed from our core business of employment services, it became clear, quite quickly, what the sensible action had to be.”

Mr Elvish said the future of the organisation’s supported employment enterprise, which provides jobs for people with disabilities, was secure.