Residents can apply for help with everyday essentials, while items such as electric blankets, warm clothing and slow cookers would be made available later in the year.
The funding is intended to help people build financial resilience, confidence and independence.
Councillor Jane Elliott, the council’s hub lead for community wellbeing, said: “We know that for many people, it does not take much for things to become difficult.”
The council said it would explore community energy schemes and work with organisations offering free energy advice.
Funding of £20,000 was allocated to West Devon CVS to help coordinate local support and connect residents with available services.
A further £20,590 was awarded to Homemaker Southwest to provide welfare benefits and debt advice for people referred through the scheme.
“This funding means we can offer help when it is needed most, whether that is emergency support, help with essential items or access to affordable options like the heating oil loan scheme,” Elliott said.
The council said residents can find information about the fund and application process through its website.
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