Investments will be made through social impact bonds, allowing private investors to fund services and receive returns based on the success of these initiatives.

This initiative is set to be the largest of its kind globally, targeting issues such as school absence, mental health challenges, addiction, and crime prevention among vulnerable youth.

The fund aims to foster partnerships among government, local authorities, charities, social enterprises, and philanthropists to improve the lives of vulnerable children and promote inclusive growth.

Culture Secretary Lisa Nandy highlighted the importance of a collaborative approach involving various sectors to effect positive change in the lives of disadvantaged youth.

Chancellor Rachel Reeves will launch a £500 million Better Futures Fund aimed at helping up to 200,000 vulnerable children and their families, emphasizing her commitment to improving opportunities for children facing significant challenges.

The fund will operate over ten years, with plans to raise an additional £500 million from local councils, investors, and philanthropists to supplement government funding.

The launch has received support from organizations including Save the Children UK, The King’s Trust, and Oxford University’s Blavatnik School of Government.

Treasury Chief Secretary Darren Jones shared a personal connection to the cause, reflecting on his upbringing in a deprived area and the impact of past government efforts.

In addition, the government will host its first civil society summit this week to enhance collaboration with charities and organizations for public benefit.

This summit aims to develop a plan for better cooperation between the government and charitable sectors to address social issues more effectively.

The initiative builds on previous efforts like the 'life chances fund,' which had a £70 million budget focused on improving outcomes for disadvantaged children.

The government’s investment in this fund comes amid ongoing political debates, including tensions over the two-child benefit cap, which costs over £3.5 billion annually.