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Xfm has agreed a deal with Oxfam to give 200 people £250 each towards the cost of organising fundraising events for , which is held in October.

Oxfam plans to raise £1m towards the cost of creating safe water and shelter for people in the developing world by hosting Oxjam, which is entering its second year. Xfm will broadcast some of the headlining acts in the series, which feature Klaxons, DJ Shadow, Kaiser Chiefs and Badly Drawn Boy, as well as unsigned bands.

This year's Oxjam is expected to generate an audience of around 300,000 with 40,000 musicians holding 3,000 concerts throughout October. The event organisers said the gigs would equate to around 500 days of continuous music and form the largest musical event to be held in the UK.

Applicants for grants for Oxjam, which is being funded by youth volunteering organisation V, are being accepted on the Xfm between July 25 and August 18.

Oxjam aims to raise £1m to create clean water for around 1.4m people, and build thousands of emergency shelters in the developing world.

Gareth Simpson, head of events at Oxfam, said: "Thousands of people around the country have big ideas about how to be part of our month of live music, and this will make it even easier for them.

"You could cover the costs for your event, get your bands onto national radio, and help us raise £1m to fight poverty, all in one simple step."