"These grants will strengthen some of the vital community and sector-led peer support services that have proven effective through the Covid 19 pandemic," Chamberlain said.
Balance Aotearoa provides free peer support, advocacy, information and consultancy services for people affected by mental health and addiction distress in Whanganui.
Balance peer support worker and Covid-19 contract lead Ana King said the funding would allow them to provide support and education about Covid-19, although she could not disclose how much funding they received.
"The peer support side of things is still in the works, but it will cover how we can help people struggling with their mental health when they catch Covid."
She said this would be through workshops, online groups and being on-call when people caught Covid-19 and needed support.
From there, she said Balance would be able to connect people with other services such as food providers and medical services to help get medication to them while they were isolating.
"The funding is definitely really helpful, otherwise, we would be stretching the work we already do," King said.
"So this allows us to really focus on Covid support, which is so important at the moment."
She said the education would cover how to avoid getting Covid-19, general protocol around what to do if people caught the virus, and the sorts of things people should be prepared for when they do catch it.
Although the funding focused on increasing the uptake of Covid-19 vaccinations and supporting access to other preventative services such as health checks and influenza vaccinations, King said Balance was focusing more on support and less on vaccination rates.
"We don't like pushing vaccinations as we want people to make their own mind up about it.
"Yes, we can inform them on why it's great to get vaccinated, but we're focusing more on the education and support side of things and what people can do to help themselves to stay well."
The Ministry of Health worked with the mental health and addictions sector to establish the new fund, with particular support from Platform Trust, the Equally Well collective and Te Pou.
The fund's focus on initiatives involving Peer Support workers follows a key recommendation of He Ara Oranga: The Report of the Government inquiry into Mental Health and Addiction.
Chamberlain said significant work had already been done to ensure the vaccination rollout met the needs of people with mental health and addiction needs nationwide, including setting up vaccination centres with low sensory options, providing support for people with anxiety and needle phobia, and organising accessible transport.
"The grants will be used for a range of initiatives, including setting up helplines, establishing new community outreach programmes, and providing transport to get people to vaccination clinics."