Family Fund is in discussion with the administrators of Comet after beneficiaries were prevented from using gift cards issued by the charity following notice the electronics retailer would be wound up.

Comet fell into administration on Friday and it was declared by administrators Deloitte that gift cards and vouchers would no longer be accepted at Comet stores.

Family Fund, the UK's largest grant giving charity, supports the families of disabled children, issuing gift cards with major suppliers as grants. Last year the charity supported 59,166 families with grants totalling £33.4m. The charity has used Comet as a supplier of kitchen appliances for over ten years, and more recently for tablet computers, providing families with gift cards sometimes as high as £500.

In a statement the Fund said it was "working closely" with administrators who have been "very receptive". Cheryl Ward, the charity's chief executive, said: "We are doing all we can to ensure that some of the country's most vulnerable families are not left unsupported from the collapse of Comet. We know that the adminstrators are fully aware how hard it will be on disabled children and their families if they cannot redeem the Comet cards they have received from the Family Fund."

Ward advised that the charity is talking with alternative suppliers to ensure that support to beneficiaries can continue without disruption.

"We are advising all families who have a Family Fund Comet gift card to hold onto their cards and onto any receipts for goods that have been paid for but not received. We will continue to keep families informed as the situation develops," said Ward.

A statement on the Comet website now advises that: "The administrators are currently considering the position in relation to gift cards and vouchers and at this stage they cannot be used to pay for items. The adminstrators are reviewing this position urgently."