The In Harmony programme aims to develop musical talent by giving children the chance to learn how to play instruments and join orchestras.
Schools minister Lord Andrew Adonis said: "In Harmony is as much about building vital life skills as about developing musical talent. Music teaches discipline and rigour, raises hopes and aspirations, is a source of pleasure, and gives young people skills that will stay with them for life."
The initiative, based on Venezuela's El Sistema project, will be piloted in five deprived areas in the next three years.
Darren Henley, chair of the Music Manifesto Partnership and Advocacy Group, said: "This initiative sees the music and education worlds working together in an innovative way and will provide us with a model to enrich the musical life of a huge number of children."
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