The grant, from the Scottish Executive, has been made to the Trust's xl programme. This is a network of alternative curriculum clubs that focus on building the self-confidence of 14 to 16-year-olds who may be underachieving at school.
Participants are encouraged to develop and take responsibility for their club's programmes, through involvement in community work and team building.
Nearly 500 young people are already involved in the 43 xl clubs across Scotland. The Trust plans to triple the number of participants by 2005/6.
Euan Davidson, director of The Prince's Trust in Scotland, welcomed the funding.
"We know that the earlier problems are identified, the earlier we can get involved," he said. "The school environment often provides clues to the difficulties that young people are facing: behavioural issues, truancy or underachieving are symptomatic of complex problems."
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