The charity Democracy for Young People currently oversees the management of UKYP, but it will be wound down and its responsibilities transferred to BYC.
Democracy for Young People has been awarded a £65,000 grant to help with the transfer.
In a written ministerial statement, children’s minster Tim Loughton said: "Following a limited competitive bidding exercise, the Department for Education (DfE) proposes to award a grant of £335,000 to the British Youth Council to continue the UK Youth Parliament’s key functions and sustain its independence and distinct identity for six months from April 2011.
"The aim of this proposal is to secure continued support for the work of the 600 young people who are members of the youth parliament or their deputies. The government is considering what arrangements would be appropriate to sustain the UK Youth Parliament in the longer term."
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