The money, allocated by Worcester City Council from its Household Support Fund (HSF) grant, is open for applications from voluntary, community, and social enterprise (VCSE) sector organisations.
The funds will be used to support those in crisis and need in the city.
Councillor Elaine Willmore, vice-chair of the Health and Wellbeing Committee, said: “The Household Support Fund aids vulnerable households in the need of help with the cost of essentials through grants provided to charities, voluntary and community organisations.
“This funding can be used to provide immediate assistance to those in Worcester who are struggling to afford essential needs such as food, energy and water bills, and other necessary household items.
“These essentials, when people are most at need, could prevent people from becoming homeless.”
Charities, community interest companies (CICs), and charitable incorporated organisations (CIOs) can apply for a grant of up to £5,000 each.
The funding must be used for a specific project to support vulnerable households in the city and not be used to support the running costs of the organisation applying.
The window for applications closes at midnight on Wednesday, January 22.
Organisations can find out more and apply at: www.worcester.gov.uk/communitygrants.