
The money will be used to develop the charity's Doorstep Sport Clubs, which, since being launched in 2013, has supported 100,000 disadvantaged young people.
StreetGames said the money, which will provide funding for 2017/18, means it can continue to focus on increasing the numbers of lower-income children that they reach.
The charity will target its work in areas where young people from lower socio-economic groups live, and where it has found physical activity can have a significant social impact. Its research shows that young people from these communities are half as likely as their more affluent peers to play sport regularly.
There are currently around 1,000 Doorstep Sports Clubs across the country.
Jane Ashworth, chief executive of StreetGames, said: "This is not just about sport; it's also about improving young peoples' lives as they grow and develop as members of healthier, safer and stronger communities."
In 2015 it was estimated that the Doorstep saves society around £69m a year based on reductions in substance misuse and antisocial behaviour, alongside improvements in school performance and attendance, and health and wellbeing.
Phil Smith, director of sport at Sport England, said: "Over the last decade, StreetGames has proven that it has a deep understanding of its customer base and its unique approach, which delivers real change in communities."
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