The cash, which will help deliver public services, is the first round of spending announced by the Home Office backed Futurebuilders �125m fund.

It offers long-term investments to give voluntary groups financial stability to secure public service contracts.

On Tuesday, Minister for Charities Fiona Mactaggart visits Pecan, a London charity which has been given �189,000.

The money will be used to extend their programme which helps ex-offenders into work after their release from prison.

Changing lives

The Smethwick-based Community Action Project (CAP) in Birmingham was offered one of the largest investments.

It was offered �869,983 which will enable the completion of a building to house a new training, nursery and community facility.

It is hoped this will enable CAP to help the local Afro-Caribbean community to overcome barriers to employment and training.

Ms Mactaggart said: "We are determined to use our energy and ability to help people at an individual level where voluntary organisations have to improve services for our citizens."

Richard Gutch, Chief Executive of Futurebuilders, said: "The voluntary and community sector has the experience and talent at its disposal to change millions of lives for the better."