A Leicestershire County Council spokesman said the authority is facing "tough choices" about its youth service provision and that the cuts to DofE mean the programme will be removed from one youth centre.
Tony Bennett, chief executive of Clubs for Young People, warned that the benefits of DofE schemes far outweigh the costs.
"It is undoubtedly one of the best schemes for young people to participate in," he said.
"The great thing about it is that it offers a structured programme over a number of years."
Jack Rowley, vice chair of the British Youth Council, argued that the programme is vital to getting young people into employment. "It's tailored to young people of different abilities and ages and can be completed flexibly," he said. "More opportunities like this are needed to supplement school-based education at such a time of high youth unemployment — not less."
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