From next year, nine councils will allocate funding through new local area agreements as part of a pilot scheme. These agreements are structured around three key themes, one of which will be children and young people.
Councils will negotiate targets with central government, but will have freedom over how to achieve them.
Proposals concerning the agreements published by the Office of the Deputy Prime Minister, which oversees local government, only mention the voluntary sector twice.
Lisa Harker, chair of the Daycare Trust, said that she hoped the Government would take charities into account as it revises its proposals.
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