The funding will go towards things like healthcare, social workers and benefits.
As with other parts of the UK, Oxfordshire has seen a rise in the number of children and families affected by domestic abuse over the period of the pandemic.
Oxfordshire County Council - which is receiving £1.1million from a £125million package for councils - says the impact of abuse is 'toxic' in families.
A spokesperson said: "... it leads to trauma and fear which undermine parents' and children's safety, emotional and social wellbeing and educational achievement. It is one of the biggest factors leading to breakdown in families and children entering care.
"This fund recognises the needs of children as well as adult victims, which is a massive step forward in government approach."
The authority says the new money will mean it can continue embedding 'innovative services that have already shown a good impact on children and parents who are victim-survivors, and parents who perpetrate the abuse.'
The Government says the funding will also go towards interpreters, immigration advice and other specialist services for victims.
Individual councils will be able to decide how it is spent in their areas though.
Safeguarding minister Rachel Maclean said it would provide a 'vital lifeline' for victims while rough sleeping and housing minister Eddie Hughes said it will give victims 'practical and emotional support'.
Nicole Jacobs, domestic abuse commissioner for England and Wales, said: "I welcome the confirmation of £125 million to enable local authorities in England to meet their duties to provide support in safe accommodation for victims and survivors of domestic abuse.
"The right support in a safe environment is integral to rebuilding your life after fleeing domestic abuse and this duty will be transformative in tackling the postcode lottery of accommodation-based support for victims and survivors.
"I am also pleased that the department is opening consultations on the impacts of joint tenancies on victims of domestic abuse and on local connection requirements for social housing for victims of domestic abuse.
"It is vital that victims and survivors can access safe housing regardless of their tenure type. That means staying safely in their own home if they want to, as well as being able to access housing in a new area if they are no longer safe where they live."
The £125 million brings the total amount invested in protecting victims of domestic abuse to more than £330 million since 2014, the Department for Levelling Up, Housing and Communities said.