The announcement is part of the government’s National Youth Strategy, aimed at rebuilding youth services over the next decade.
The £500m will mostly be spent on children and young people aged 10 to 21, but some aged up to 25 with special educational needs and disabilities will also be supported.
Unveiling the plans, Culture Secretary Lisa Nandy said young people are “the most digitally connected but also the most isolated in generations”.
She said: “The challenges facing young people today are urgent and demand a major change in direction.
“For too long, youth policy has been an afterthought. This generation deserves better.”
The YMCA said youth services need “long-term investment to fully recover”.
A spokesperson added: “This is a good start at repairing the damage, but elements of this are only a fraction of what was lost.”
