Sorry to hear your funding is running out. I know leaving hospital can be scary, I've been in and out enough times to know that!
Hopefully the place you're at now will help ease you back into the community. It's worth telling them your fears and they can help you work through them.
It can be quite easy to become institutionalised which is why long stays in hospital aren't always beneficial. You cant stay in hospital forever, and while leaving is scary it is also good so you can learn how to cope in the community.
What's the place they want you to go to like? Is it like supported accomodation? That is a good stepping stone down from hospital.
If you really think that you need to be in hospital longer and dont think the funding should be stopped, it's worth getting an advocate from the patient advice and liason service (PALS). It's free and they speak on your behalf to the necessary people. Ask someone in hospital for their contact details, or you can find it here
http://www.pals.nhs.uk/