A new £500 million government fund — the largest of its kind globally — has been announced to support vulnerable children and families across the UK.
Unveiled today by Chancellor of the Exchequer Rachel Reeves, the Better Futures Fund aims to transform the lives of up to 200,000 children and young people over the next decade. The initiative is a central part of the government’s Plan for Change, designed to break down barriers to opportunity and give every child the best possible start in life.
The fund will invest in programmes that improve school attendance, pupil behaviour, and academic achievement. It could also support initiatives tackling youth crime, reoffending, and mental health challenges, alongside projects providing employment support and specialist help for children at risk of exclusion.
Alongside the government’s £500 million commitment, plans are in place to raise an additional £500 million from local government, social investors, and philanthropists. Backing for the fund has already come from organisations such as Save the Children UK, The King’s Trust, and Oxford University’s Blavatnik School of Government.
Chancellor of the Exchequer Rachel Reeves said:
"I got into politics to help children facing the toughest challenges. This fund will give hundreds of thousands of children, young people and their families a better chance. For too long, these children have been overlooked. Our Plan for Change will break down barriers to opportunity and give them the best start in life".
Chief Secretary to the Treasury Darren Jones said:
“Partnering with impact capital to tackle child poverty was a personal priority for me coming into government - which is why I set up the Social Impact Investment Advisory Group to advise on the development of this brilliant fund, which we’ve been delighted to support as a government. I’d like to thank Dame Elizabeth Corley for chairing the group and all the members for their hard work”.
Louisa Mitchell MBE, Chief Executive Officer, AllChild said:
“I warmly welcome the government’s Better Futures Fund as a pivotal step toward transforming how we support children and families across the country. It’s vital that children engage with the right support and opportunities, at the right time, in the right way. Holistic support that is rooted in each child’s local community, builds on their strengths, and places trust and relationships at the heart of delivery.
I hope this fund will be a catalyst for a new way of working - one which prioritises prevention, shared accountability for locally identified outcomes, and genuine cross-sector partnerships. This is how we can ensure every child no matter where they live has the support and opportunities they need to flourish”.
Richard Rigby, Head of UK Government Affairs, The King’s Trust said:
“At The King’s Trust, we know that timely support can change the course of a young person’s life. Potential is everywhere but opportunity is not. The Better Futures Fund is an investment in the potential of young people who are too often left behind. We welcome this commitment to early intervention and collaboration with organisations like ours to tackle inequalities and help young people build brighter, more secure futures. By getting behind young people, we can all help to make the UK a healthier, wealthier, more positive and cohesive place.”
The fund builds on successful models already operating across the country. In Greater Manchester, the Better Outcomes Partnership supports young adults at risk of homelessness. Meanwhile, projects like AllChild have halved persistent school absences and improved emotional wellbeing in 80% of children they support. Other initiatives, such as The Skill Mill, offer young people paid work experience and qualifications — reducing reoffending rates from 63% to just 8%, with three-quarters of participants progressing into further education, training, or employment.
Today’s launch comes ahead of the UK’s first Civil Society Summit, where the government will set out a wider strategy for working with charities, social enterprises, philanthropists, and businesses to tackle the country’s biggest social challenges through fairness, collaboration, and trust.
The Better Futures Fund is also informed by consultation with the Social Impact Investment Advisory Group, and will be delivered by the Department for Culture, Media and Sport. More details about the fund’s specific programmes and priorities are expected in the coming months.
The initiative complements the government’s upcoming Child Poverty Strategy, set for publication this autumn, which will outline fully funded measures to address the underlying causes of child poverty across the UK. Photo by Lucélia Ribeiro, Wikimedia commons.