The pledge came as Balls accepted all the recommendations from Sir Jim Rose's review into the teaching of children with dyslexia and literacy difficulties.
Part of the cash will go towards training 4,000 new specialist teachers, so that all dyslexic children have access to a specialist teacher within the next two years.
All teachers will also be given access to online dyslexia training and parents and schools are to be issued with new guidance on dyslexia support services.
Balls promised that children who need extra help at school would be given one-to-one support.
He said: "No child should be held back by a special educational need. I have met many parents who have struggled to get the right support for their children. I am personally very committed to improving this support and making it more easily accessible to all children and parents who need it."
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