Leeds City Council will use the money, the largest amount ever awarded under the social care innovation fund, to establish a centre of excellence that will focus on spreading best practice in its strongest areas of work - leadership, restorative practice, and its "front door" contact system.
Over the three-year funding period, the authority will also use part of the cash to build on existing restorative work.
It will build on pilot restorative early support teams that work with families who are facing more complex challenges, with the aim of eventually extending them to all neighbourhoods of the city.
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