St Mungo's has been awarded £900,000 by the Corporation of London to run a specialist outreach service for homeless people over the next three years.
The homelessness charity hopes to expand its team from eight to 10 to run the 24-hour service in the City of London. Workers will find accommodation and health services for homeless people in other parts of London because the Corporation does not allow homeless shelters within the Square Mile.
Christopher Mitchell, chairman of the Corporation of London's community services committee, said: "This strategy will play an integral part in our efforts to help rough sleepers on the City's streets to find suitable accommodation.
"It also aims to reduce the nuisance of street begging by informing the public that the most effective way of helping genuine homeless people is not to give directly to beggars but to recognised charities instead."
The service is set to be launched on Friday.