A letter from the EU Home Affairs sub-committee to Victoria Atkins, minister for crime, safeguarding and vulnerability, says nearly £550,000 has already been "wasted" from the Fund For European Aid to the Most Deprived (FEAD) allocation to the UK.
It warns a similar amount could be lost again unless the government draws up a funding programme before the end of the year.
FEAD addresses the "worst forms of poverty" in European Union member countries such as food deprivation, child poverty and homelessness.
More than £3.5m was allocated to the UK for 2014 to 2020 to be used in community projects to tackle these issues.
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