The charity Street Games, which supports young people through sport, has received £6.65m in funding from Sport England to develop opportunities for physical activity in 50 of England's most deprived areas.
According to research published by Sport England in January 2017, only 17.5 per cent of children in England (1.2 million) meet guidelines for recommended daily activity.
As well as tackling physical health, SteetGames has seen young people it works with access opportunities to build new social connections, and combat isolation and loneliness.
The funding is for a three-year project to work with existing Street Games partners and also increase its network of community sports clubs.
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Street Games' chief executive Jane Ashworth, said: "Street Games is absolutely committed to improving the lives of disadvantaged young people and their communities through sport, not only getting them more active but ensuring we support their mental and physical wellbeing, develop them as individuals within their communities, combat inequalities and help build an activity habit that stays with them for a lifetime.
"This critical Sport England investment will allow us to continue using sport and physical activity to help create stronger, more resilient communities in these 50 areas and beyond."
Mims Davies, minister for sport and civil society, said it was "vital that we continue to create opportunities for everyone to access sport".
"Street Games makes a real difference to hundreds of thousands of children's lives, teaching them important skills and improving mental and physical wellbeing," she said.
In July 2018, Street Games received Department for Education funding to deliver projects designed to provide healthy meals and activities for disadvantaged families during the school holidays.