The fund, from Nottinghamshire County Council, is to help people meet the costs of food, energy and water bills.
At least 80 per cent of the fund will be spent on families with children, with the remainder supporting vulnerable adults.
It has quickly proved successful, helping more than 80 different families with utility payments in the first ten days since it was launched.
A total of £770,000 was provided over Christmas and January, the majority through schools and colleges, helping around 22,500 families by providing supermarket vouchers or food parcels.
The fund also helped more than 3,300 children in early year settings over the Christmas period.
The county council is working with district and borough councils, colleges, schools and early years settings on the scheme.
Just over £340,000 has been allocated to district and borough councils to help support them to support people in their areas.
Councillor Philip Owen, chairman of Nottinghamshire County Council’s children and young people’s committee, said: “Many families here in Nottinghamshire have been badly affected by the coronavirus. Some of us have lost loved ones. Others have lost their jobs and incomes, through no fault of their own.
“We need to do all we can to help vulnerable people who are struggling, including parents with young children, so they can continue to cover essential costs this winter.
“I’m pleased that this funding is being used to help our communities get through some very tough times and look forward to a brighter future.”