The changes will take effect on 1 April and follow a Government decision to merge all money for fighting youth drug use into a 55m fund, called the Young People Partnership Grant.
The grant unites a variety of funds currently controlled by Connexions, the Department of Health, local drug action teams and the Youth Justice Board. The Home Office's 8.7m Young People's Substance Misuse Grant will also be included.
The Government hopes the grant, which will be run by the Home Office, will improve co-operation between agencies and give local areas more control over how they use the money.
Local authorities will, on behalf of drug action teams, receive an annual grant for drug work with young people.
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