It is estimated around 600 children and young people under the age of 16 in Wolverhampton - and another 1,800 young people aged 16 to 24 - care for a parent, grandparent, sibling or other relative by providing practical or emotional help.
The enhanced service which will be delivered by Spurgeons Wolverhampton Young Carers will ensure even more young people in the city are able to get the help and support they need to look after a loved one.
Spurgeons Chief Executive Ross Hendry said: "Spurgeons has been supporting young carers and their families in Wolverhampton since 1995. Our new contract will see us support even more young people who are undertaking caring responsibilities but who may have not yet been identified.
"As part of our national profile of high quality services for children and families, our services in Wolverhampton focus on identifying, supporting and empowering young carers to minimise the risks and impacts of their caring role and to achieve their full potential. We are delighted to be able to continue delivering this service in partnership with the City of Wolverhampton Council."
Councillor Paul Sweet, the City of Wolverhampton Council's Cabinet Member for Children and Young People, said: "Spurgeons has done a brilliant job for young carers in Wolverhampton for many years, and we are pleased to be able to continue working with them.
"Hundreds of young people in Wolverhampton care for a relative, taking on practical or emotional responsibilities that would normally be expected of an adult. The stress and anxiety that this can cause can leave them feeling isolated, and many sadly miss out on their childhood or struggle at school because of the pressures they are facing.
"Clearly it is an incredibly difficult role for a young person to take on, but the fantastic support available from Spurgeons Wolverhampton Young Carers will help them to overcome these challenges."
The new service offers a wide range of support based on the needs of individual carers. To find out more, please contact Spurgeons Wolverhampton Young Carers via Spurgeons Young Carers, call 01902 877550 or email wolverhamptonyoungcarers@spurgeons.org.
Spurgeons is hosting a launch event for professionals who would like to find out more about the new service. It takes place at The Workspace, All Saints Road, Wolverhampton, on Tuesday 15 January from 12pm to 4pm. Anyone interested in attending should contact Spurgeons on 01902 877550.