The Family Mediation Voucher Scheme is being extended until April 2025.
It provides separating couples with vouchers worth up to £500 towards the cost of family or divorce mediation.
This is costing the government another £15 million. So far the scheme has supported over 15,000 families.
Nearly 70 per cent of people who tried mediation have had their case either partly agreed or agreed in full without going to court.
The increased use of mediation should lead to better outcomes for couples which, in the long term, is expected to save the government money.
Mediation also provides a cheaper solution for couples to resolve disputes as it avoids running up big legal bills.