Dinah Morley, deputy director of Young Minds, said the award reflected the Government's ongoing efforts to tackle mental health disorders among young people and children.
The funding will help the charity pay fees for its team of 20 mental health consultants.
Morley added that the Government's commitment was also demonstrated by its plans to this year spend 140m on local authority-based child and adolescent mental health services, with a further 70m earmarked for health services in April 2004.
According to figures from the Office of National Statistics, 10 per cent of young people between the ages of five and 15 have a mental health disorder.
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