FEARS that seriously-ill North-East children will get a raw deal from the distribution of National Lottery funds is behind a plea to Health Secretary Alan Milburn.

The region has only three beds for children who have incurable long-term illness, yet its population suggests it should have at least ten to meet demand.

More than £15m in Lottery money is due to be awarded to children's hospices to increase bed numbers, but current rules mean that most of the extra cash will go to areas that already have more beds than the North-East.

Doug Henderson, MP for Newcastle North, has written to Mr Milburn asking him to use his influence to change the rules.

Guidelines laid down by the Department of Culture, Media and Sport mean that only existing children's hospices can share in the payout, which favours areas outside the North-East.

That means that plans by the Newcastle-based St Oswald's adult hospice to open eight beds for children needing palliative care cannot benefit from Lottery funds.

In his letter, Mr Henderson said: "I am concerned that, as the policy stands, the North-East will be considerably disadvantaged from its already under-provided provision."

The expansion proposals at St Oswald's were widely supported in the region and would help families in Tyneside, Wearside, North Durham and Northumberland, he said.

Presently, the only children's palliative care beds in the region are at the Butterwick Children's Hospice, in Stockton, Teesside.

Just across the Pennines, the North-West has 32 children's hospice beds.

A spokeswoman for the New Opportunities Fund, which allocates Lottery money, said the policy to allocate cash to existing hospices was taken after discussion with the Department of Health and the Association of Children's Hospices.

"Where the need is greatest is for home-based palliative care. We have directed two-thirds of our money towards that area," she said