The DfES said it needed to claw back money because it had previously anticipated the fund would not spend its full budget.
Children's Fund boards have warned projects not to expect the full grant they were promised for next year.
A DfES spokesperson said: "The Children's Fund has been overcommitted in terms of allocations. This came about because of early underspending and a wish to ensure that money was fully used on preventative services.
The department under-estimated partnerships' ability to spend as closely to budget profiles as they are now doing."
Some local Children's Fund boards are asking all projects to cut costs while others are picking out individual projects.
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