Campaigners are looking to stave off plans to restrict use of an acclaimed facility. By Stephen Naysmith

Controversial plans to reform an Edinburgh service for disabled adults have been put on hold after it emerged the city council neglected to follow proper procedure in pushing for the changes.

Garvald Edinburgh, which includes a community bakery which was the subject of an award-winning documentary film last year, had been asked to stop providing a service to adults assessed as having "moderate" or "low" support needs, as part of a city-wide attempt to focus services on the most needy.

However, a vocal Parents Carers and Members' Action Group was formed to fight the change. The group says Garvald's success rests on the diversity of its members and questions the categorisation of people with a learning disability.

At a meeting with council officials it emerged that the council had failed to carry out a disability impact assessment, as required by law since 2006. Any change in policy has to be assessed formally to assess its impact on disabled people, but the radical change to the running of this significant resource had not been.

Garvald Edinburgh provides day, accommodation and support services for adults with learning disabilities. It is inspired by the work of Rudolf Steiner, and supporters say its work focuses on celebrating the potential of every individual for creativity and self-discovery.

However, in line with other learning disability services in Edinburgh, the council has announced that it will no longer be able to fund any adults using Garvald Edinburgh Day Services unless they are assessed as having "high" support needs.

The day services cover three sites, comprising 10 different workshops and users also take part in many activities in the wider community. The workshops include a bakery supplying local shops, confectionery, joinery, puppetry, furniture restoration, tools, pottery, glass and weaving. Some 130 adults participate in Garvald Edinburgh Day services either part or full time. Edinburgh pays for 102 of those, most or the rest are funded by other councils. Under the plans now put on hold, 36 are expected to lose the service because they have "moderate" or "low" support needs.

Members and staff support and learn from each other, according to supporters who say that the 2007 Scottish Bafta-nominated short film The Breadmakers made at the Gorgie bakery demonstrates vividly how this works in practice.

Spokeswoman for the action group Sue Gutteridge said: "We completely reject the proposed increased segregation of people with high' support needs. Where's the inclusion in that?"

Edinburgh City Council has suggested that those no longer funded to use Garvald can use other community resources such as continuing education, volunteering, recreational activities or part-time employment. However many of these are already being accessed by Garvald members, Gutteridge added. "They are able to do this because of the structured support that Garvald and other organisations offer."

She welcomed the council's renewed consultation, but said it must be meaningful. "It is good that the council has recognised that they should have done a disability impact assessment. So far they say they've consulted, but they haven't spoken to any Garvald members."

The parents' group has offered to help in the design of the EIA, she said but has had no response.

A spokeswoman for Edinburgh City Council said a compromise was still possible, acknowledging: "A lot of people really like the Garvald service." The council's budget meeting takes place this week and may affect the outcome. However she stressed the need for the council to prioritise access to services when funding is tight.

"The number of people who require our support continues to increase. The purpose of the redesign is to provide increased care and support capacity for people with the greatest needs - whose numbers are growing."