The House of Commons voted to repeal Section 28 in March 2003 and the bill was given Royal Assent last Friday. Section 28 bans schools and local authorities from promoting homosexuality, and prohibits schools from teaching the acceptability of gay "pretended family relationships".
Existing LGB youth work projects have had to work via a loophole in the law that permitted funding for projects that tackled sexual health issues.
David Henry, president of Queer Youth Alliance, said: "LGB youth groups will be able to apply for funding and be more public about their services. Many teachers have been afraid to condemn homophobic bullying."
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