A community group raising money to turn a neglected chapel on the Llyn Peninsula into a vibrant centre for culture has received a much-needed boost of £25,000 from the Welsh Government.

Deputy minister Jane Hutt announced the Hafod Ceiri charity as one of the projects to benefit from a share of £1,946,849 for improvements to community-based facilities right across Wales through the Community Facilities Programme.

Hafod Ceiri will put the money towards renovating and extending the Grade II listed Capel Llithfaen to include a heritage centre, enterprise and business workshops, gallery, café and multi-use space including place of worship.

The Welsh Government programme, which funds projects up to £250,000, or up to £25,000 for smaller grants, helps communities to improve their financial and/or environmental sustainability.

Jane Hutt said: “The pandemic and recent flooding has highlighted some specific challenges within communities, like mental health and social well-being. Shared commitment reinforces vibrant, caring communities, where citizens are bound together by close ties of co-operation and team work, inequalities are reduced, and the most vulnerable among us feel supported.

“The Welsh Government’s Community Facilities Programme supports some fantastic local projects to evolve and grow to meet the specific needs of their area. Offering grants like these helps improve much-needed facilities, which play an important part in the lives of people throughout Wales.”

Finance minister Rebecca Evans, added: “Community facilities provide local access to a range of important services, such as health and well-being activities and have been a focus for activity throughout the pandemic. This money will support these invaluable assets to thrive and grow.”

Hafod Ceiri hopes to turn the dilapidated Grade II listed Capel Llithfaen into “a multi-purpose centre for historical interpretation, the arts and social inclusion”.

A group spokesperson said: “This project will create a vibrant and sustainable multi-purpose centre by adapting a handsome chapel with striking interior architectural features. A hard-working committee has come together to save the building whilst breathing new life into the local economy and celebrating local heritage.”

The group had managed to secure some funding to start work on the chapel, and signed a lease on the building in February 2020.

“But this difficult period descended upon us and the work came to an abrupt halt, almost before it began,” the spokesperson added.