The money will help youngsters leaving the care system

The Scottish Government said some of the money would help support young people beyond the age of 18.

Latest figures show there are 1,560 children in residential care homes and schools across Scotland.

Charity Children 1st said it hoped the money would improve the extremely poor life outcomes experienced by some children who have been in care.

The money will be distributed between Scotland's 32 local authorities in 2007/8.

Adam Ingram, the children and early years minister, said: "Authorities and agencies can never fully replace a parent, but they can turn around the experiences of children from challenging backgrounds by asking 'What would I want for my own child'?"

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Anne Houston, Children 1st chief executive, welcomed the funding.

"For too long children in care, who are among some of our most vulnerable members of society, have lacked the long-term support they need.

"Many young people have had a very difficult start in life, and it is our responsibility to make sure we do not write them off but instead provide the necessary support to help them overcome the challenges they have faced."

Nicola McDade, 24, entered the care of Glasgow City Council as a baby and went on to complete a masters degree at the University of Glasgow.