Charities that work with young offenders will be able to apply to a new £1m fund from the Lloyds TSB Foundation for England and Wales.
The foundation's Young Offenders Programme is open to local, regional and national charities of any size that have a proven track record of working successfully with young offenders in areas including accommodation, skills training, drugs and alcohol and employment mentoring.
A spokeswoman for the foundation said there was no lower or upper limit on the value of the grants and that the funding would last for up to three years, with no lower limit.
The deadline for applications to the fund is 25 September.
Lloyds TSB's four foundations -- England and Wales, Scotland, Northern Ireland and the Channel Islands -- distribute one per cent of the bank's pre-tax profits each financial year.
The England and Wales branch gave out £8.5m between January and June this year.
Linda Kelly, chief executive of the foundation, told Third Sector: "Following an in-depth evaluation of our ex-prisoners funding over the last three years, we identified a pressing need to support work to break the cycle of reoffending among younger prisoners.
"Our new programme aims to support charities that can deliver measurable changes and benefits to improve young offenders' life choices and chances."