The Restorative Justice Development Grant will be distributed among all 158 youth offending teams (YOTs) in England and Wales so they can provide basic training in the practice for all staff.
The cash, which will be issued in three parts over the next two years, will also cover the cost of advanced training for staff who have already received initial training.
Restorative justice has been gaining popularity in youth justice circles in recent years as an effective alternative to taking more formal action.
It brings together victims and offenders involved in an incident to play a part in repairing the harm and finding a positive way forward.
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