The money from the Welsh Assembly Government will be used during 2008/09 to improve the methods used by transition workers.
Children's minister Jane Hutt announced the funding in a statement to the Welsh Assembly last week about progress on 40 recommendations for improving disabled children's services made by the assembly's Equal Opportunities Committee back in February.
She said an external transition reference group had been formed, which would report to her about the progress being made in improving services.
She said: "This is a multi-agency group made up of key stakeholders from across Wales including young disabled people and employers, organisations that are tasked to provide workable solutions to the recommendations."
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