Money from unused bank accounts is to be used by the government to provide a "youth centre in every town". The scheme is part of the government's 10-year strategy for young people which is due to be unveiled by Children's Minister Beverly Hughes.
Ministers hope providing more for young people to do will stop them from behaving anti-socially.
The announcement comes a day after the government promised an extra £1bn for afterschool arts and sports clubs.
Schools Secretary Ed Balls said every child should be able to take part in "fun" activities once lessons were over.
But the Institute for Public Policy Research (IPPR) warned that the teenagers most in need of constructive after-school activities risked missing out under the government's new plan.
It said research showed the most disadvantaged young people were the least likely to take part because of local cultural norms and peer influences.
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