Sheffield Council will receive £19, 294, 766 from the Life Chances Fund which the Department for Digital, Culture, Media and Sport said will 'transform the way public services are delivered' in the city.
There are 10 organisations across the country to benefit from a funding pot of £28 million and Sheffield was the biggest recipient taking about two-thirds of the total.
Elsewhere, the Innovation Unit in Doncaster is to benefit from £1, 795, 810.
READ MORE: Arsonists torch 15 tyres in Sheffield streetThe council-supported project aims to help youngsters aged 11 to 16 who have poor attendance records and are frequently excluded from school.
The scheme involves introducing 'bespoke learning plans' and mentoring to get young people engaged in education again.
Civil Society Minister Tracey Crouch said: "The Life Chances Fund is helping transform lives across the country and I am looking forward to seeing how these fantastic projects use this funding to benefit children and young people, teaching them valuable life skills."
The Government's contribution is in addition to funding from local authorities which will provide a combined £83 million to the successful projects.
READ MORE: Atdhe Nuhiu explains Sheffield Wednesday contract situationThe Life Chances Fund launched in July 2016 with the objective of helping disadvantaged people to lead more successful lives.
The fund is structured around tackling the six key themes of drug and alcohol dependency, children’s services, early years, young people, older people’s services and healthy lives.