Some 93 staff at v face possible redundancy as a result of the Department of Education's decision to axe vschools.

vschools was part of Labour’s Youth Community Action project to encourage 14 to 19-year-olds to take part in volunteering.

v was given one-year funding of £8m to help develop the intiatative. However, the new coalition has axed the project.

Commenting on a decision today by the Department for Education to close the Youth Community Action programme, including vschools, v chief executive, Terry Ryall, said:

“We are extremely disappointed and alarmed by the Department for Education’s decision to end the Youth Community Action programme, including vschools. 

"In just four months vschools has established a universal volunteering and social action initiative for every State secondary school in England. Feedback from schools and local government has been universally positive and welcoming.

"The decision not to fund vschools is a big blow for Big Society.  The government is missing a fantastic opportunity to embed a commitment to social action at an early, formative age.

"Cutting the programme at this stage is a false economy when the start-up investment has already been made.  Any actual savings to the public purse will be minimal, indeed potentially non existent when set against the return on the investment that could have been achieved by letting the programme run as planned.”