David Sneddon was the winner of the first Fame Academy

The bursary is part of a scheme to make more than �1m available for up to 400 musical instruments and five educational grants for young musicians.

It has been put together in conjunction with the charity Youth Music, which works to bring music to young people all over the country.

When Fame Academy returns later this year, all the profits from the voting will be given to the bursary scheme.

Fame Academy, which was made by Endemol UK and ran on BBC One and saw 12 hopefuls compete for a �1m record contract and year living in a luxury flat.

Sinead Quinn was also on the show

It took place in the �35m Witanhurst House, north London, which was fitted with dance studios, gym and hot tub.

But it was revealed that members of the show's production teams "may have been" exposed to asbestos, according to the Health and Safety Executive (HSE).

A spokesman for the HSE told BBC News Online it began an investigation after the "exposure to asbestos at Witanhurst was reported to HSE in March 2003 by Endemol UK".

He said that subsequent analysis of the material in the basement area showed that persons working in the area "may have been exposed to amosite (brown asbestos) and chrysotile (white asbestos)".

Asbestos investigation

But he added it was "not possible to quantify the extent of exposure".

"HSE has taken action to improve the management of asbestos in the property and our investigation into the circumstances of the exposure is continuing," he added.

The bursary awards will be given to young people with a genuine love for music, a proven commitment to performing and creating music and a wish to further develop their musical talent.

And substantial educational awards will be given which could support a musician through three years of advanced musical development and education.

Application forms

Applicants can apply online for the first round of instrument awards.

An online call centre (0800 771 234) will be open from 8am to 10pm explaining how to get free local on-line access to an application form.

The closing date for applications is 19 July 2003, although in order to maximize the amount of money available for awards, only the first 7,000 completed applications will be considered.

Applications for the educational grants will open on 1 August 2003, when forms will be made available on the Fame Academy website at 1700 BST.

Details of both schemes can also be found on Ceefax page 623 or from the Fame Academy Bursary Hotline - 08705 100 777.