The Department for Education has announced over 100 charities which will get funding from its new £120m, outcome-based grant, to equip the voluntary sector to operate within a payments-by-results environment and lever in private investment.

The grant will last two years, with funding in year two depending on the successful delivery of agreed outcomes.

The biggest grant has been allocated to Kids Company, which is set to get £9m over the two years if it delivers successful results.

Five strategic partners have also been appointed by the Department of Education to advise on the voluntary sector and help charities through the transition to an outcome-based funding environment.

The five strategic partners are 4Children, Barnardo’s, Children England, Council for Disabled Children and the National Council for Voluntary Youth Services (NCVYS). They expect to share around £9.6m from the £120m funding pot over the two-year period.

Susanne Rauprich, NCVYS chief executive, said: “NCVYS and our partners are extremely pleased to have secured this opportunity. The appointment will allow us to bring the sector’s knowledge and skills together for mutual benefit, to invest in new and innovative methods of financing our work and continue a strong and effective partnership with the department.”