The National Lottery Community Fund will proceed with a £500,000 grant to Mermaids UK, a charity for transgender children and their families, after an anti-trans campaign prompted a review of the proposed funding.

A source has told BuzzFeed News that the review was vigorous and far-reaching in examining the concerns raised against the planned grant, which would enable the charity to set up localised support for young trans people. The grant, to be paid out over the course of five years, represents 0.1% of the money raised by the lottery each year to fund community projects.

Opponents of Mermaids' work had accused the charity of encouraging children into medical transition, of promoting the notion that transgender children exist, and of being part of a "cult".

In a statement posted to its website, the National Lottery Community Fund said: "Following public interest regarding the proposed grant to Mermaids UK, The National Lottery Community Fund undertook a review of a number of concerns expressed in relation to the charity.

"This review did not find any grounds to withhold funding from Mermaids UK. The grant has therefore been approved by the England Funding Committee. As part of our grant management process, we will work closely with Mermaids UK to ensure they are supported in their development."