Charities and not-for-profit organisations, which provide the Entry to Employment (E2E) basic skills course, are experiencing unprecedented demand for places, because of the credit crunch.
But they are turning young people away, because the Learning and Skills Council (LSC) has been unable to fund the rise in demand.
Darling pledged enough funding to cover places on E2E in the next two academic years, but until then, learning providers could have to keep turning young people away.
This is because E2E courses operate on a rolling basis, instead of starting in September.
Graham Hoyle, chief executive of the ALP, said that government must commit to backing E2E for the next five months, not just from September.
Providers need "urgent confirmation" of funds, or vulnerable young people are "at risk of facing life on benefits or getting into trouble," he said.
All 16- and 17-year-olds have a statutory right to a place in education or training, which includes E2E courses.
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