Millennium Volunteers national projects, such as those run by the Duke of Edinburgh's Award scheme, will continue to be administered by a restructured Millennium Volunteers Unit at the Department for Education and Skills in Sheffield.
The plans are designed to "achieve better coverage", said a spokeswoman at the department. But the changes mean jobs at the Millennium Volunteers Unit are on the line.
Since 1999, 15m a year has been made available to Millennium Volunteers, with 12.5m going to regional projects and the rest towards central costs.
The same amount is scheduled for 2004/05 and 2005/06.
Millennium Volunteers has been part of the Connexions policy team portfolio since last summer. Around 111,000 young people are part of the scheme.
The 150 Millennium Volunteers projects in England have been waiting for funding news since November.
London Youth has applied for 300,000 to fund a Millennium Volunteers project for 600 people. Tracie Trimmer, operations director for the organisation, said: "We need to know what these changes mean for our workers."
The Millennium Volunteer of the Year ceremony is to be held on 28 March.
Tom Jeffery, director-general of the Children, Young People and Families Directorate, is expected to attend.
www.millenniumvolunteers.gov.uk.
