SkillsActive, the sector skills council for leisure and learning, relies on an annual grant of £619,000 from the DCSF. The cash is used to support SkillsActive's playwork unit, which leads the development of playwork education and training for all those working with children.
But the grant has been unexpectedly cut to £400,000 for the next two years.
Paul Bonel, director of the SkillsActive playwork unit, said: "We're delivering a large programme of work for the government, upskilling the play workforce, so it's a blow to have our grant cut by 35 per cent."
He added that he was concerned about the future role of SkillsActive once its funding ends in two years' time.
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