Pubs in villages across England and Wales are being encouraged to apply for grants as community meeting places and other local facilities to help them to fight the threat of closure.

The initiative has been authorised by government ministers and local authority chiefs as a cash lifeline to keep open pubs as vital community amenities. Pubs are closing at the rate of six a day, up from five a day a year ago, and MPs have urged the government to offer more support for villages and the drink trade.

The only condition for the funding is that the pub must offer new facilities for local people. This could be a shop, a post office, a meeting place for the parish council, or pub premises being used as clubs for elderly people and mother and toddler groups.

About 40 rural pubs have already received grants, which usually make up 50 per cent of funding for a project, with the landlords making up the rest. Most grants are about £5,000, though they can be more. A further 40 to 50 pub grants are in the pipeline.

The Department for Communities and Local Government has written to councils reminding them of their powers to help communities in this way.

John Healey, Local Government Minister, said he was aware that councils would not be able to rescue every ailing village pub. But he told The Times: “Councils have a number of powers they can use to support their communities. I have said I want to see more councils using these powers creatively to meet the needs of their communities. If there is a good case, there is no reason why they shouldn't support their local pub, shop or any other business.”

The minister's action has won the backing of the Local Government Association. Margaret Eaton, its chairman, is pleased that councils are coming up with schemes to save and support vital services in rural areas.

“Pubs are often at the heart of village life, and are important meeting places for many people,” she said.

The Prince of Wales is credited with persuading politicians to release new funds to preserve local services. The Pub is the Hub initiative, partly funded by the Prince's charitable trust, is advising councils on how best to support their pubs.

John Longden, chief executive of the organisation, said: “The extra cash can make the difference between a pub staying open or having to close. The licensee has to take some of the risk in a new venture, but in nearly all cases local people support him or her because they want them to succeed and the pubs to stay open.”

Stuart Burgess, the chairman of the Commission for Rural Communities, is hoping to persuade Gordon Brown to offer more cash towards such vital rural amenities when the two meet later this month.

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