The Irish National Organisation for the Unemployed has expressed outrage over the £2.8 million which is being returned to the Exchequer from the Jobstart programme and the Local Employment Service.
The move completely undermined the Government's commitment to tackle unemployment, said Mr Des Bonass, vice chairman of the INOU.
"This is the second consecutive year that funding for this programme has met with such a fate. What is required now is a full examination as to why the money is not being spent. We believe that the lack of direction from Government on the LES is the reason behind this," he said.