The fund was set up in 2006 and is supposed to include providing disadvantaged young people with a chance to get involved in their local communities.
Ann Coffey, MP for Stockport, said she is concerned that the fund, which allocates 31m a year, is not reaching enough disadvantaged young people.
"Local councils seem to be giving money to people who bid for it who are established organisations," she told Young People Now. "I don't think enough effort is being made to contact disadvantaged young people who continue to be on the streets, to let them know it's there."
Coffey said part of the criteria for applying for a bid was having a bank account, which she felt excluded some people.
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