Allen sees it as essential in spearheading the development of the most effective early intervention practices and wants it to support 15 "local early intervention places".
In a letter to Allen, made public today, Cameron said he is "supportive of the idea of setting up an independent foundation".
He said this could "guide the development of the early intervention market" and "help us transform the debate about child poverty".
"I will indeed speak to the Chancellor about what role government funding could play in the creation of this new foundation, and I have asked my ministers and officials to work with you constructively to explore the options available," he said.
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