An independent evaluation of the second year of Positive Activities for Young People highlighted recruitment and retention problems caused by "uncertainty over the future of the programme".
Although the Government has indicated the scheme will continue beyond its initial three-year funding period, the Big Lottery Fund, one of the main funders, has withdrawn its support, prompting fears that the initiative will be scaled down.
Evaluators CRG Research said: "There is still evidence of some confusion on the ground as to what exactly will happen. Without prompt clarification ... the risk of key workers leaving for other positions will remain."
A Department for Education and Skills spokeswoman could not confirm when Education Secretary Ruth Kelly would make a decision on funding.
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