The Department of Health is increasing investment in stem cell donation by £4m in order to save an estimated 200 lives.
Anna Soubry, the public health minister, said that 400 patients a year missed out on treatment because of a lack of suitable stem cell donors.
The money will be given to NHS Blood and Transplant, which manages the national voluntary donation system for blood, tissues, organs and stem cells, and the charity Anthony Nolan, which works with people who urgently need stem cell transplants.
The organisations will use the cash to increase the supply of stem cell donations available to patients with conditions like cancer and lymphoma needing a transplant.
Soubry said: "The funding will mean that cord blood collection centres will continue to collect cord blood to increase the amount of suitable stem cells available.
"It will also be used to improve the current register of young adult donors, meaning patients will not have to wait as long for a transplant.
"I look forward to seeing how this extra investment helps our NHS stem cell services continue to save people's lives."