Life can't use grant on its counselling or education services.
The decision was met with criticism in April, with Walthamstow MP Stella Creasy tweeting: “This fund was supposed to help women not encourage those organisations who want to control them-completely unacceptable and must be stopped.”
The Department for Culture, Media and Sport has said the grant was for a specific project in London.
A spokeswoman said: “As set out in the grant agreement, Life will not be able to use the Tampon Tax grant to fund its counselling service, or its ‘Life Matters Education Service’ and is prohibited from spending the money on an publicity or promotion.
“The grant is for a specific project in west London to support vulnerable, homeless or at risk pregnant women who ask for their help.
“All payments will be made in arrears and on receipt of a detailed monitoring report.”