The National Lottery is the largest community funder in the UK and is often donating to charities, through the National Lottery Community Fund, which is raised by lottery players.
The donation will go to the Falcon Support Services, and will use the cash to develop and run new drop-in services across Loughborough during a three-year period.
The new service will be an open-door opportunity to allow anyone to gain support from it and provide those in need with drinks and food, as well as offer support around health, welfare, housing and employment.
The sessions will look to alleviate poverty, improve health and improve individual skills, education and opportunities.
The fund from the lottery will also open up more possibilities for the charity to help a greater scope of people suffering from homelessness.
CEO of Falcon Support Services, Marie Davis said: "We're delighted that The National Lottery Community Fund has recognised our work in this way. Now, thanks to National Lottery players, we will be able to increase our services and reach more people in need. Particularly after a challenging year with the pandemic, this is now more important than ever."
The Falcon Support Services currently provides the homeless with 97 bed spaces in supported accommodation and community projects across Leicestershire.