The one-off funding grant will go to the Citizen’s Advice Bureau for a new project working with people in the black, minority ethnic and eastern European community.
It comes after councillors at Preston City Council voted the funding grant through at a cabinet meeting on Wednesday, August 16.
At the meeting Coun Nweeda Khan (inset) said: “It will be funding the costs for volunteers who will be running the project in the community and hopefully they will build on capacity for other volunteers.”
Discussing the funding before voting it through leader of the authority coun Matthew Brown said: “I think it is essential that we so do this project especially with Universal Credit being rolled out.
"We need to do what we can to support the community through this.
"When Universal Credit does come into play food bank usage does go up.”
Coun Martyn Rawlinson said: “It’s a good use of funding with transitional arrangements with welfare reform. This is a very good use of it to support the sustainability of our local charity.”
Preston’s CAB, which according to council documents has been struggling financially, is currently also applying for other funding grants.
Initially the new project will develop as a pilot.