Anton Leschen, general manager of The Smith Family (Victoria), said the pandemic had disproportionately impacted children living in poverty and exposed them to a greater risk of long-term disadvantage.

"We call [the pandemic] 'the great amplifier'," Mr Leschen said. "We know it will lead to fewer vulnerable children staying in school, completing their education and fulfilling their potential in a way that might have been possible had they stayed in school."

Mr Leschen said it was primarily the some 18 per cent of children identified as living below the poverty line in Australia prior to the pandemic who lacked both the financial wherewithal and "social and professional networks" to withstand the difficulties of prolonged home-schooling.

The experience of a student with access to stable internet and a safe and secure home, Mr Leschen said, was incomparable to that of a student who lacked those advantages.

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"Anecdotally, there's no question that the impact of the pandemic on vulnerable children exceeds that of advantaged children," he said. "The Smith Family is very concerned about their drift from education and ability to re-engage with their education since schools have returned."

Recognising this, the Victorian government has announced $112.9 million in funding for disadvantaged students for whom the added costs of extra-curricular activities - such as school camps, swimming lessons and cultural excursions - is prohibitive.

Victorian Minister for Education James Merlino said the package is designed to ensure no student misses important opportunities to rebuild their social connections and sense of wellbeing in 2022.

"[It's] about making sure students - especially the ones hardest hit by the pandemic, or the most disadvantaged in our community - don't miss out on vital outdoor education and socialising," he said.

"We know the pandemic has been challenging for many kids - and this program makes up for lost time with exciting experiences for everyone."

Monica Thielking, psychologist and chair of the department of psychological sciences at Swinburne University, welcomed the "evidence-based initiative", which she said recognised the important educational outcomes yielded by extracurricular activities.

"Being involved in sports, camps and other extracurricular activities has important psychological and development effects, like increase[ed] self-esteem and identity development through being part of something bigger," Professor Thielking said.

"Such activities anchor young people in the community and this can be particularly important for young people who are struggling at school."

It's a sentiment shared by Mr Leschen, who said extra-curricular activities often played a critical role in dismantling observed patterns of intergenerational poverty.

"If a child never gets that chance to apply their classroom learning outside in the museum or on the sporting field or in music, there's a risk they'll never discover what they're good at and see their potential future employment," he said.

"If you're failing in a classroom that isn't offering co-curricular activities, your desire to actually stay in school is less because we don't like to stick with what we're not good at."

Buninyong member Michaela Settle said all children in need would be eligible for the funding support and identified by the education department through their respective schools.

The program is expected to be popular, given demand for front-line services has doubled this year.

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