The recently-launched Health Lottery has started a programme to give community and voluntary groups in Norfolk grants of between �5,000 and �10,000.

The commercial lottery has proved controversial since its launch last September, as it donates just 20.34p per �1 ticket to charity, compared with 28p for every National Lottery ticket.

Projects in Norfolk are now being invited to apply for a Healthy Communities Small Grant from the People's Health Trust, the body which distributes money raised by the Health Lottery.

The funding, raised by HealthSuccess, the local society lottery for Norfolk, will make awards of between �5,000 and �10,000 to local community and voluntary groups to support activities aiming to help people live longer and healthier lives.

The People's Health Trust is keen to support grassroots activities targeting people at higher risk of experiencing poor health, funding activity that can show it is needed in the neighbourhoods in which it will be delivered.

Professor Jennie Popay, chairman of the People's Health Trust, said: 'I am delighted that the first open funding programme we're launching is aimed at local charities and community groups. These groups are valuable community assets, involved in a wide range of activities that make a real difference to the health and wellbeing of their communities. Our new funding programme will be able to provide the small pots of funding that can be a lifeline to them.'

It is illegal to set up a national lottery to rival Camelot, but the Health Lottery has circumvented this rule by setting up a network of 51 local lottery societies – which also makes it exempt from paying the extra 12p duty a ticket that the National Lottery gives to the Exchequer.

The company has not divulged how much profit it eventually envisages to make from the Health Lottery.

The Hospices Lotteries Association has urged people to boycott the Health Lottery, saying they feared it would affect income from hospices' own lotteries.

To find out more visit the People's Health Trust website at www.peopleshealthtrust.org.uk. The deadline for applications is January 23, 2012.