Nurseries, child-minders and other early years providers in Sutton are set for a £154,078 cash injection to help three and four-year-olds from disadvantaged families.
Children from low income families often fall behind more well off classmates before they even start school.
But from April 2015, the Early Years Pupil Premium will mean extra money to make sure every child gets a fair start.
Tom Brake, MP for Carshalton and Wallington, said: "By investing £154,078 in Sutton to help the most disadvantaged three and four-year-olds, we are ensuring that children are getting the best possible start in life.
“All the evidence shows that helping children as early as possible is key to making sure they do not fall behind. That is why this announcement is fantastic news for children.
"This is all part of creating a fairer society and opportunity for everyone."
Nurseries and schools will be free to choose how to spend the money, which is part of a £50m Government pot. This comes on top of Lib Dem-led changes in Government to help families, which include shared parental leave, tax free childcare, Free School Meals, and a pupil premium for school age children.
Liberal Democrat Schools Minister David Laws added: "Every child deserves the opportunity to reach their full potential, whatever their background.
“Liberal Democrats in government have already extended free early years education for all children in Carshalton and Wallington. Now this cash boost will mean extra support for those children who need it most.”