The second funding round from the Youth Sector Development Fund will be divided between 12 third sector organisations, which will each receive funding of £2.5m from December 2008 to March 2011.
Beverley Hughes, children's minister, who announced the second round of funding, said: "We expect to fund a wide range of organisations whose work focuses on our current youth priorities - particularly but not exclusively, those that offer services to young people at risk of becoming involved in crime - to help build on the Youth Crime Action Plan."
Grants will also be awarded to a variety of third sector organisations that help young people face difficult issues such as substance misuse, teenage pregnancy and not being in education, employment or training.
Hughes has also asked for organisations from all sectors to bid to become a pilot for the Intensive Intervention Project.
Public, private and third sector organisations will be able to bid for grants of £650,000 each to work with challenging and problematic young people.
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