The charity will receive 2.46m from the Sure Start Unit during 2004/05 and an expected 2.59m in 2005/06, children's minister Margaret Hodge announced last week.
Home-Start supports families with young children through a home-visiting service delivered by trained volunteers, all of whom are parents themselves.
It operates in some of the most disadvantaged areas in the country, in many cases working alongside local Sure Start programmes and with families who have multiple problems.
The cash will allow the charity to sustain and expand existing services in England and develop new ones.
Home-Start's new chief executive Dylan Harrison, a former Sure Start manager, said: "This will have a significant impact on the lives of the children and parents we already support and those who currently cannot access Home-Start.
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