Four staff are losing their jobs at the Executive's Portadown office, with another seven going in the Marlborough House and Brownlow/Lurgan offices, all as part of a three-year budget cut programme.

The staff members, who are all under temporary contracts, will remain employed by the Housing Executive until their contracts expire.

In recent weeks 60 temporary staff members from across Northern Ireland have already lost their jobs, and the Housing Executive have confirmed that around 450 jobs will go over the next three years.

Upper Bann MLA John O'Dowd said he now feared that the Housing Executive in the Craigavon area was now in 'jeopardy'.

"The demise in the number of workers in the Housing Executive will ultimately result in a demise of the Housing Executive itself – with a direct effect on management and planning," he said.

"We have raised concerns over the past number of years regarding the lack of social housing development in the Portadown area. We have had some success in lobbying the Minister, for example the Churchill Park area is to be re-developed and we are now concentrating on Water Street which is currently a row of derelict housing."

A spokeswoman for the Housing Executive attempted to play down the significance of the cuts. "While job losses will primarily affect our administrative staff and our professional and technical staff, the Housing Executive will be looking to achieve savings across the organisation through its modernising services programme, while at the same time ensuring that the delivery of its services is maintained," she said.

"The Housing Executive is confident that the reductions can be implemented without any adverse effect on services and will be aiming to deliver the savings required through voluntary means."

She added; "The Housing Executive has been consulting and will continue to consult with its staff and the trade union."

The decision to cut 450 jobs comes as union, Nipsa, claimed almost 10,000 jobs could be lost across Northern Ireland's government departments, as part of an efficiency drive which aims to raise £790m.