Place2Be was awarded the grant through the Department of Health’s Voluntary Sector Investment Programme, enabling it to expand the range of services it offers to schools and families, and explore new funding models including payment-by-results, social impact bonds and private sector partnerships.
Benita Refson, founder and chief executive of Place2Be, said: "Our staff work in schools providing early intervention mental health support, without stigmatising children, young people or families and at a point when they need it most.
"This grant will give us much more capacity to make a real difference to children’s lives and for helping to provide much needed evidence of what really works. This will in turn help local authorities, the NHS, schools and others to support some of the key priorities facing local communities."
Health minister Paul Burstow said the money, which was a share of a £6.8m tranche of funding from the department, will allow innovative solutions to challenges in public health.
"It is crucial that we continue to champion our voluntary organisations, because their expertise allows them to design and develop innovative solutions to the big challenges we face in health, public health and social care," he said.
"These exciting projects are more than worthy of our support and I am delighted that the money will be spent on providing individuals and local communities with the tools to tackle health and wellbeing."