The new fund has been created from profits released after the council’s affordable housing venture Bridge Homes was closed.
The company was dissolved last year after the council said it had become a “challenge” to compete with developers providing similar housing schemes in the district.
Plans for the new fund include £2m to support families with the cost of school uniforms and a one‑off £50 winter fuel payment for pension‑aged residents who receive council tax support.
About £620,000 would be spent on the free memberships at council‑run leisure centres for young people, while £100,000 would be used to support 16 to 18-year-olds to access training and education.
A further £40,000 would be used to “respond to a shortage of accessible childcare provision”.
The overall budget proposals are designed to tackle a £23.4m shortfall during the next financial year.
They include making £11.5m of “service efficiencies and savings” across a number of departments.
An additional £9m would be spent on adult social care and £5m on children and young people due to both services facing “record levels” of demand, according to the Local Democracy Reporting Service.
Cabinet members are due to consider the plans on 17 February before they are put to a full council vote on 2 March.
