To help victims of crime get compensation for their injuries, the government has cut the budget available.
This year, the Criminal Injuries Compensation Scheme will have £10m less, a cut of about 5%.
An unpublished report from the largest victims' organisation, Victim Support, seen by the BBC, says there is already a "financial time-bomb" in the scheme.
The forecast for this year's budget "would provide sufficient funding", said the Ministry of Justice.
On the future of the scheme, the government intends to hold a consultation run by the Criminal Injuries Compensation Authority, in the autumn.
Depending on the severity of the injury to victims of crime, the authority can make awards from £1,000 to £500,000. Last year, more than 60,000 people applied for compensation.
The decision to cut the budget from £211m to £201m comes despite Justice Secretary Ken Clarke telling Parliament last year that "it simply has not received adequate funding in each year's budget to keep up with the level of claims".
David Hines, chairman of the National Victims Association, said he was furious at the funding cut.
"It's an outrage," he told BBC Radio 4's PM programme.
"Quite frankly it should be increased by £200m and decent payouts made to the victims of homicide and victims of serious crime."