The fund, which is being bankrolled by the Department of Health and Social Care and the Department for Work and Pensions, and managed by Public Health England, will be available for up to eight local authorities.
Public Health England said it wants to see "ambitious bids" involving "robust joint plans from public health and children and family commissioners that are designed to lead to identifying more children and parents".
It also wants to increase the number of alcohol-dependent parents receiving and completing treatment, alongside support to reduce parental conflict.
And it wants to reduce the number of looked-after children of alcohol dependent parents being taken back into care, and reduce the time they spend on the child protection register. The application phase for the innovation fund runs until 17 July.
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