Community groups will be able to bid to receive up to £30,000 to support work in educating young people about the danger of carrying weapons.
Victoria Atkins, minister for crime, safeguarding and vulnerability, said: “Knife crime has devastating consequences for families and local communities and we are determined to provide necessary support for those most at risk.”
The additional funding comes from a wider £40m of funding from the Home Office, as part of its Serious Violence Strategy.
According to ONS data, knife or sharp instrument crime in England rose by 22% from the end of 2016 to 2017.
Hundreds of charities bid for a £765,000 worth of funding last year to help prevent knife crime.
A total of 47 charities across the country have benefited from the funding, including Coventry-based Positive Youth Foundation.
Rashid Bhayat, chief executive of the charity, said: “I would encourage organisations to apply to this funding round, as it will allow for much needed support and interventions for young people most at risk.”