A HAMPSHIRE children's hospice is celebrating after being awarded a £1.5m grant.

Naomi House Children's Hospice in Sutton Scotney, has received the one-off payment from the Hampshire Primary Care Trust.

The funds will now go towards the completion of Jack's Place, which will care for older teenagers and young adults.

The completion of the building had been in jeopardy after £5.7m of the charity's funds were almost lost when the Icelandic banking system collapsed.

Khalid Aziz, who chairs the hospice said the cash would fill a 'big hole' at a press conference this morning.

He added: "Taken together with the money we are told b ythe administrator we will get back, which is 75 per cent of what we are owed it puts us back to where we were before, so in essence we have our monye back. I'm delighted."