The UK government announced on Sunday the launch of a £500 million ($675 million) fund aimed at supporting up to 200,000 vulnerable children and their families.

Named the Better Futures Fund, the initiative is designed to offer struggling families improved access to education, secure housing, and essential support services over the next decade, according to government officials.

Prime Minister Keir Starmer and Chancellor Rachel Reeves have faced growing pressure from Labour Party lawmakers to increase assistance for low-income families. Earlier this month, Starmer was compelled to scale back parts of his welfare reform proposals to secure passage through Parliament.

“This fund will give hundreds of thousands of children, young people and their families a better chance,” Reeves said in a statement. “Our ‘Plan for Change’ will remove barriers to opportunity and help give every child the best possible start in life.”

In addition to government funding, the Treasury confirmed plans to raise an extra £500 million through partnerships with local authorities, social investors, and philanthropic organizations.

While welcoming the new fund, Mel Stride, finance spokesperson for the opposition Conservative Party, criticized Labour’s broader economic approach, claiming it had contributed to the financial challenges faced by many families.

The government is also reportedly reviewing the controversial two-child cap on welfare benefits as part of a wider policy reassessment, amid efforts to improve public support and polling numbers.