Community projects are being encouraged to apply for funding from a new £1.4 million charity fund.

Postcode Community Trust has been set up to support local grassroots charities and groups across the country, with grants of up to £20,000 available.

It is funded entirely by players of People's Postcode Lottery and applications for the first round of funding will open on January 5.

Support ranging from £500 upwards will be awarded to community and sport groups, projects that engage in environmental protection or those that promote human rights and poverty prevention schemes.

The charity lottery has seen more than £56 million raised for charity to date, with 50p from every £2 ticket supporting good causes across the UK.

A charity set up by round the world yachtswoman Dame Ellen MacArthur was able to offer sailing trips in Scotland to young people recovering from cancer thanks to funding from players of the lottery.

Frank Fletcher, chief executive of Ellen MacArthur Cancer Trust, said: "Postcode Community Trust will make a huge difference to charities across Great Britain, at a time when funding available for charities and good causes is increasingly restricted. Community and grassroots projects are in desperate need of support and this news is a great way to kick off 2015 for fundraisers."

Joe Ray, trust manager of Postcode Community Trust, said it would allow an extra 400 local projects to be supported each year across Scotland, Wales and the north of England.

People's Postcode Lottery holds five draws a month and involves players using their postcode to win cash prizes while raising money for good causes in their area.