The message needs to go out to young people that the Urdd is still there for them

Jenny Randerson, Assembly Minister for Culture

The foot-and-mouth crisis forced the cancellation of the lucrative annual National Eisteddfod, which should have been held in Cardiff in July.

Restrictions on use of the countryside has also affected bookings at its residential centres in Llangrannog in Ceredigion and Glan Llyn in Gwynedd.

Announcing the assembly cash boost on Saturday, Culture Minister Jenny Randerson - whose brief covers the Welsh language - would help the movement regain momentum in the second half of the year.

"The message needs to go out to young people that the Urdd is still there for them," she said.

The annual eisteddfod has been cancelled

The extent of the organisation's money problems became apparent at the beginning of the month, when its headquarters in Aberystwyth were put up for sale.

It announced it was facing a deficit of �500,000 and would have to axe18 jobs.

The Urdd has had its headquarters in Aberystwyth since the 1930s.

Urdd Chief Executive Jim O'Rourke has said there is no choice but to sell the headquarters.

"We have decided that selling our headquarters is more sensible as an option than opting for more losses of staff across the organisation," he explained.

The immediate plans for the future are to rent somewhere locally.

The Urdd has denied it will eventually move from Aberystwyth - the place it describes as "the spiritual home" of the movement.