Hodge was quizzed on whether funding for youth arts would be extended to a longer period at an English National Youth Arts Network conference last week.
The former children's minister said projects were now being funded for three years, rather than one year, which had been the case previously and had been more difficult to manage.
"We now manage three-year funding blocks," she said. "A tighter fiscal environment means that the money that was around five or seven years ago is no longer around. It's going to get worse, not better, if you look at where the economy is going over the medium term."
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