Voluntary groups are set for a £4.5 million cash boost from the Home Office.

Home secretary David Blunkett announced on Wednesday that community groups will get grants to invest in new technology.

The money will go to 16 community groups working in deprived areas.

Projects include an on-line mentoring support service for young people and an IT support package for social entrepreneurs.

Blunkett also announced that his department is to research how ethnic minority and mainstream voluntary groups can learn from each together by working together.

There will also be a new, comprehensive quarterly survey on the work and needs of the voluntary sector.

Blunkett told the National Council of Voluntary Organisations that government, the private sector and voluntary groups had to work together.

"Strong and active communities are at the heart of the government's vision for a civil society, and key to tackling inequalities, reducing crime and disorder and promoting community cohesion," he said.

"Everyone, whatever their age, race or social background, should believe they have a stake in society and that their views count."

His announcement is part of the a series of initiatives aimed at tackling social exclusion, particularly in the inner cities, and the Home Office has set a target of increasing voluntary community activity by five per cent by 2006.