The Cabinet Office announced it has shortlisted 397 charities to apply for a share of the £20m Local Sustainability Fund.

The fund attracted over 1,000 initial applications during the month long application window in June.

Initial applications were selected using an online diagnostic and eligibility checker and shortlisted charities were selected based on recommendations by regional panels.

Yesterday the Cabinet Office said it has invited shortlisted charities “to submit a full application”.

The fund will distribute some £20m of government money to organisations with an income of between £100,000 and £1.5m a year. The successful final 250 charities will receive individual grants averaging £70,000 with first payments being made in March 2016.

The fund received criticism in June for being half the size originally announced by former minister for civil society Nick Hurd in 2014. The fund was originally expected to be £40m, although current minister Rob Wilson has since said the size was never confirmed.

In June, Jay Kennedy, director of policy and research at the Directory of Social Change criticised the fund's application window for being "ridiculously short".

"It isn’t good practice particularly because it will take some time for the information to filter down to organisations and for them to decide if they are eligible, let alone to consider the different elements that they will have to bring together to develop a successful bid," he said.

Shortlisted charities include the London-based Anne Frank Trust, Bromley Mencap and Bolton YMCA.

Information on the Cabinet Office website said the fund will support the sustainability of “high-impact, community and social enterprise (VCSE) organisations” that provide services to vulnerable or disadvantaged people. It is administered by the Big Lottery Fund.

Civil Society News approached the Cabinet Office for comment but it declined to respond.