The National Citizen Service (NCS) contract with The Challenge has been helping to deliver the government-backed programme for 16- and 17-year-olds but has hit problems over IT issues.
The trust states that it will not renew the contract from 2020, as it has been unable to reach an agreement with the charity to use a shared IT system "that ensures value for money, improves customer experience and protects young people's data".
The trust also cites how 4,000 young people were "let down" by The Challenge this summer because they weren't allocated a place on their chosen programme.
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