The National Lottery Community Fund has said charities are facing pressure on services as costs soar.

The public body responsible for distributing funds raised by the National Lottery has confirmed it will increase some of its funding in light of the growing issues facing charities amid the running costs crisis. 

The National Lottery Community Fund (NCLF), which distributes around £500million in grants each year, said the plans to increase offerings were in response “to increased costs and pressure on services” facing charities.

The announcement comes as the Edinburgh-based Corra Foundation promised a 10 per cent funding uplift to help its grant recipients deal with soaring inflation, meaning dozens of youth charities in Scotland will receive a funding boost. 

In a statement, the foundation said all community-based charities funded through the Henry Duncan Grants programme have been offered “an automatic 10 per cent uplift on grants instalments, to be paid over the next 12 months to help with rising costs”. 

Corra said the same would be offered “where they are needed” through other programmes. 

Around 25 charities are supported each year through the Henry Duncan prgramme, with the anticipated cost expected to be around £60,000 next year, according to Third Sector.

With inflation at just under 10 per cent - a 40-year high - the think tank Pro Bono Economics has said it represented an “all-hands-on-deck crisis” for the charity sector.

Earlier this year both the Bank of Scotland Foundation and the William Grant Foundation also agreed to uplift grants.

A spokesperson for the NLCF told Third Sector: “We are committed to listening and supporting communities with what is important to them. 

“Cost of living is a growing concern and we are responding flexibly while also monitoring the situation closely to ensure we are in step with communities’ needs.”