Coram Family's Education Support Project, set up in 1998, provides 100 care-leavers with intensive one-to-one help with basic skills, literacy and numeracy. But the project faces closure after a bid for European Social Fund cash was rejected.
Gillian Pugh, chief executive of Coram Family, said: "We scored high in the criteria for the European Social Fund, but just not high enough."
Coram Family believes the closure is partially the result of a focus on GCSEs and the unwillingness of funders to support projects involving small numbers of young people.
"There is a gap in funding streams in that they don't target the neediest young people," said Pugh. "Local authorities also want to see results, but there is a very large number of young people who need a lot of support."
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