The outbreak of needle heads is expected to hit British schools this winter while treating NHS axes for children

Schools are facing an upsurge in headline cases this winter, after the NHS slashed funding for treatments, warned a charity.

Doctors are now prohibited from prescribing "Bug Buster" kits, with health authorities seeking to save 100 million pounds a year.

The itchy insects are spreading rapidly among students while the cash – strapped families face a repeated treatment cost, according to the charity Community Hygiene Concern.

The poorest families will be the most affected by the cuts because they are forced to pay 13 pounds for over-the-counter medications.

Previously, insecticide treatment cost the NHS £ 4.92.

Frances Fry, spokesperson for Community Hygiene Concern, told the Observer: "Not everyone can afford to buy repeat treatments for head lice, which are very, very expensive and may be ineffective. "

She added, "Children whose parents can not afford treatment will be victims of violence and intimidation, and all judgments and stigmata will be restored."

An NHS England spokesman said: "This will reinvest up to £ 100 million in better mental health, cancer control and recovery services.

"Clinical experts advise head lice to be treated effectively and safely by wet combing, with chemical treatment recommended only in exceptional circumstances."

The news comes as scientists say that lions have developed a "high level" of resistance to some of the most popular treatments.

Research shows that in at least 25 US states, lice have developed resistance to over-the-counter treatments that are still widely recommended by doctors and schools.

Dr. Kyong Yoon, University of Southern Illinois, said, "We are the first group to collect lice samples from a large number of populations in the United States.

"We found that 104 of the 109 lice populations we tested had high levels of genetic mutations, related to pyrethroid resistance."