At prime minister's questions last week the Tory leader relayed concerns from his shadow children's secretary that the £113,000 from the Pathfinder fund responsible for tackling extremism had been redirected by two Muslim schools towards Hizb-ut-Tahrir.
The Islamist group has faced sustained criticism from the government for its extremist views, which include the creation of a pan-Islamic state, but it has not met the criteria to be proscribed as a terrorist group.
On Monday Mr Cameron admitted his party had made a mistake following angry retorts by children's secretary Ed Balls.
'It is now clear that the Pathfinder fund responsible for tackling extremism was not involved,' he said.
'I am sorry for the error and am a firm believer that when you get something wrong you should put it right.'
In the wake of Mr Cameron's claims last week Mr Balls resolved to ban extremist teachers from UK schools.
But he said there was 'no evidence' to support the Tory suggestions and indicated that the erroneous claims could play into the hands of Islamic extremists and the far-right.
The Islamist group has faced sustained criticism from the government for its extremist views, which include the creation of a pan-Islamic state, but it has not met the criteria to be proscribed as a terrorist group.
On Monday Mr Cameron admitted his party had made a mistake following angry retorts by children's secretary Ed Balls.
'It is now clear that the Pathfinder fund responsible for tackling extremism was not involved,' he said.
'I am sorry for the error and am a firm believer that when you get something wrong you should put it right.'
In the wake of Mr Cameron's claims last week Mr Balls resolved to ban extremist teachers from UK schools.
But he said there was 'no evidence' to support the Tory suggestions and indicated that the erroneous claims could play into the hands of Islamic extremists and the far-right.
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