Tower Hamlets Council is to overhaul the way it awards grants to community and voluntary organisations (VCS) in the borough.

A new £2.6 million Local Community Fund and a small grants programme will be introduced which will provide funding of up to £5,000.

The changes have been drawn up following a consultation with VCS in the borough and from next year funds will be allocated to groups and organisations that will provide:

• Inclusion, health and wellbeing (£990,000)

• Employment and skills (£435,000)

• Community safety (£195,000)

• Digital inclusion (£60,000)

• Information and advice (£980,000)

Councillor Candida Ronald, cabinet member for resources and the voluntary sector, said: “We could not hope to provide all the vital services our residents need without the support of our VCS partners.

“We have not arrived at this new approach overnight and I would like to thank all those in the sector who have helped to co-produce the new programme.”

The changes were rubber-stamped by the council’s cabinet this week.