Nearly £8 million is being donated to community groups, many of which are seeing more people demand their services because of the recession, the Big Lottery Fund said.

The money is being distributed to 33 organisations across the country, including a group in Derbyshire which has seen a rise in the number of workers seeking help after being made redundant.

The YMCA in Woking will receive nearly £500,000 to help teenagers struggling to find work or training, while a project in Wolverhampton which encourages youngsters to get back in to the education system will be given more than £250,000.

Sanjay Dighe, chair of the Big Lottery Fund in England, said he had received more applications this year for projects which offer advice to people.

He said: "Advice organisations are dealing with a high level of support requests including homeowners who find their homes at risk following redundancy and reduced incomes and who are struggling to adjust and cope."

Kim Miles, from Framework Housing Aid, said the recession meant more people were seeking legal advice about housing and other financial problems.

The Big Lottery Fund is responsible for distributing half of the money raised for charitable causes by the National Lottery.