The funds were established as part of the Youth Matters green paper in 2005 and have proved popular for giving young people the power to decide how hundreds of millions of pounds of government money should be spent on youth projects and facilities.
But the government is expected to remove the ring-fence around the remainder of the £40.7m allocated to the youth opportunity fund and £26.5m allocated to the youth capital fund in 2010-2011 as part of its move to cut public sector spending and give councils more power over where funds are spent.
CYP Now has learned that some regional government offices, which oversee the distribution of the cash, have already been informed of the changes.
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