Proposals in the education bill, which is in committee stage in the House of Lords this week, would give schools more control over their budgets.
Head teachers would be able to set three-year spending plans, and local education authorities would have less say in how the money was spent.
The Department for Education and Skills said the proposals would make no difference to the way extended schools are funded. But the proposed funding changes were recently criticised as "short-sighted" in a report by Parliament's Education and Skills Select Committee. Local authorities often use part of their education budget to fund out-of-school services.
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