The only children's hospice in Sussex has thrown its weight behind a campaign to highlight the funding crisis faced by services across the country.

Chestnut Tree House, near Arundel, offers specialist care and support to children and their families across Sussex.

It costs £2 million a year to run but the hospice gets no Government funding so running costs have to come through fund-raising and charitable donations from the community.

Chestnut Tree House is currently caring for 130 children and 480 family members but could support more children and young adults with extra funding. It has capacity to care for up to 400 youngsters.

Prime Minister Tony Blair met representatives from the Association of Children's Hospices on Wednesday who highlighted similar problems facing hospices across England.

One of the problems is a three-year grant for hospices from the Big Lottery Fund comes to an end between March 2006 and December 2007 with nothing to replace it in sight.

Hugh Lowson, Chestnut Tree House chief executive, said: "We are restricted in the service we can offer to life-limited children and their families due to the lack of additional Government funding for our service.

"We know there are up to 400 children in East and West Sussex who need our help and we would like to extend the care we already provide but as we are totally reliant on the support and generosity of our local community, there is only so much we can do."

Worthing East and Shoreham MP Tim Loughton, who is also shadow minister for children, said: "I urge Tony Blair to make this issue a high priority.

"Not just for children who need Chestnut Tree House but for the 20,000 life-limited children across the country for whom children's hospices are a lifeline.

"Some of us have been campaigning for a long time to give children's hospices access to at least the same level of public funding as adult hospices receive.

"This would be a tremendous vote of confidence in their essential work and recognise the burden they take off the state and the hard work of so many volunteers and dedicated members of staff."

Representatives at the meeting asked the Prime Minister for an immediate cash injection to stop cuts and for greater statutory support over the long term.

Barbara Gelb, chief executive of the Association of Children's Hospices, said: "Children's hospices can no longer afford to depend on private donations.

"They need Government funding both for their long-term future and to address the immediate problems created by the end of lottery income."