Education Secretary Damien Hinds confirmed that the money will go to Reading Borough Council to set up the trust, which is to be called Brighter Futures for Children.
The trust is set to go live in October and will be chaired by Deborah Jenkins, who is currently chair of Together for Children, the trust set up last year to run children's services in Sunderland, which was rated "inadequate" by Ofsted in July 2015.
Jenkins' appointment has been made jointly by the Department for Education and Reading's children's commissioner Nick Whitfield, who is also chief executive of Achieving for Children, the community interest company that runs children's services in Kingston upon Thames and Richmond councils.
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