The money, which comes from the Department for Children, Schools and Families, will be distributed among 25 local Home-Starts to provide extra family support up until the end of March 2010.
Support will include creative ways of helping families affected by the recession, additional emotional support to families who have seen an increase in anxiety, depression and stress, and directing families to other agencies who work with families struggling to cope with their finances.
Kay Bews, chief executive of Home-Start UK, said: "Not only do some of the most vulnerable families in our community gain much-needed support, but our existing trained parent volunteers will have gained greater understanding of the difficulties brought about by redundancy, reductions in income and other changing family circumstances."
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