The scheme, through Quilter’s charity foundation, is in collaboration with Carers Trust and The Mix.
The partnership aims to invest the money over three years to develop and deliver pioneering support services for young carers in the UK.
In the UK, there are 376,000 young people aged 16-25 with unpaid caring responsibilities.
With the funding Quilter says Carers Trust will be able to deliver programmes that provide immediate relief to young carers who face barriers to their wellbeing, education or employment prospects.
These include activities such as maths tuition, confidence building, coaching, mindfulness and wellbeing classes, CV building, skills training and public speaking.
Young carers can often become isolated because of their caring role and often seek support online.
The Mix is a free, confidential digital support service for under 25s, which connects youngsters to experts and their peers to talk and get support.
In November Quilter launched the Quilter Foundation, a registered UK charity, which aims to empower young people to transform their lives, to thrive and prosper, with the right support in place for them.
Paul Feeney, CEO of Quilter plc and chair of The Quilter Foundation, said: “Unpaid carers can save an astonishing £132bn a year.
“A figure that will most certainly grow as our society ages.
“Young people involved in the care of family members can feel isolated, struggle with mental health issues and tend to have poorer outcomes in education and employment.
“That’s not acceptable and we can do something about that.
“As part of our partnership Quilter plc employees will bring their passion and time to directly help young carers in their local communities through the Carers Trust’s network.”
Giles Meyer, CEO of Carers Trust, said: “We’re thrilled to start a three-year partnership with Quilter.”
He added: “Funds raised for the partnership will help us make a real difference to young carers’ lives and achieve a step-change in public understanding of caring responsibilities and attitude to young carers.