A spokesperson said whilst the Government was "strongly opposed" to the treatment it did not believe a ban or restriction was the right answer.
On Tuesday, Conservative MP Mike Freer secured a debate in Westminster Hall to call for "gay conversion therapies" to be outlawed.
The debate came after Education Secretary Nicky Morgan said the treatment, given to gay people to help them get rid of same sex attraction, should be banned.
Premier has been told the Government believes a ban would be "complex" because it would prevent lesbians, gay men and bisexual people from seeking counselling or therapy because they are distressed about an aspect of their sexuality.
The Department of Health acknowledged that supporting people through aspects of their lives that are difficult or challenging is a large part of what therapists do.
A spokesperson said: "We do not believe that being lesbian, gay or bisexual is an illness to be treated or cured.
"We strongly oppose so-called gay to straight 'conversion' therapy and continue to welcome and support the work of the counselling and therapy bodies to eradicate this practice."
They added that no public money would ever be used for what some describe as 'gay cure' therapy.
Meanwhile campaign group Christian Concern has published a letter that it has sent to MPs outlining the benefits of gay conversion therapy being readily available.
The letter, signed by the president of the American College of Paediatricians and several psychiatrists, calls for MPs to "protect the freedom of individuals to choose to access therapeutic help with unwanted same-sex attraction".
It states that "scientific evidence shows that there is a significant amount of change in same-sex attraction for both males and females, particularly during adolescence and early adulthood".
