The education secretary Ruth Kelly has pledged to spend at least 50p on primary and 60p on secondary school lunches for each child, a rise of over 10p on the cost of the average school meal.
The Channel 4 series 'Jamie's School Dinners' focused on a secondary school in Greenwich, where only 37p was allocated to each child.
Kelly signalled priority would be given to areas in the UK where spending is at a minimum, although every school in the country should get something.
Oliver said on leaving Number 10: "It is certainly very positive -- 20 years too late, but we are talking about the right sort of money."
At least £60m of the funds will be used to set up a new School Trust, which will devise healthy school menus and advise schools and parents on nutritional standards.
The success of 'Jamie Oliver's Dinners', which showed children being fed processed junk food, with some meals containing less than 30% meat, forced the government into addressing the problem.
The petition has been running on Jamie Oliver's site for six weeks and generated 271,677 signatures. The petition exceeded all expectations, with Oliver initially hoping for just 20,000.
Oliver told people on his website last night, before any decision was announced, to keep their fingers crossed.
"I am off to speak with the government again and I will be presenting the 271,000 signatures we have had on the website petition to improve school meals. Thanks to all of you who have supported the campaign.
"I am really keen to see what the government's response will be. Keep your fingers crossed that all of the news will be good."
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