Councillors have unanimously backed Perth and Kinross Council's bid to pilot a Cash First Partnership in Perth and Kinross.
The partnership would move away from food banks being the first port of call for those in financial need and instead support residents to maximise their income.
The move was approved by Perth and Kinross Council's Housing and Social Wellbeing Committee on November 2.
The Scottish Government has made funding available to support 10 pilot Cash First Partnerships in Scotland.
Community Planning team leader Lee Haxton told the committee the Community Planning Partnership Board had approved a proposal to submit the application. It was reported as part of an update on the Community Planning Partnership.
In his report Mr Haxton said: "Referrals to food banks would continue where appropriate, however, the ambition would be to help individuals and households maximise their income and ultimately give them the dignity of choice. This would mean that when someone seeks emergency support, the Cash First Partnership will help them to apply for a crisis grant and complete a benefits check to ensure that they are maximising their income. The Cash First Partnership can also provide a referral to partner organisations such as food banks if required."
The report was moved by SNP Strathmore councillor Jack Welch and seconded by SNP Perth City South councillor Sheila McCole.
After it was unanimously approved, Labour councillor Brian Leishman said: "We have been presented with some terrifying statistics over the last few months.
"It's estimated 6000 households in Perth and Kinross are workless, 13,000 in Perth and Kinross earn less than the Living Wage, 24,000 people all over our region are considered to be in lower paid work, 5155 children in Perth and Kinross - around one in four - live in poverty, and around 12 per cent of school pupils are classified as being among the 40 per cent most deprived in Scotland using the Scottish Index of Multiple Deprivation.
"I wince whenever anyone else or I label these facts as statistics because every number or percentage is a person."
The Perth City North councillor said he was upset so many are "scraping an existence" and food banks "have become normalised".
He said: " Perth Foodbank - in eight years - has seen the need for their service increase by 10-15 per cent year on year.
"Truthfully, a three-day emergency food parcel is not going to lift anyone out of the types of poverty mentioned. But a Cash First Partnership that works on the idea services collectively work together so that food banks aren't the first or only point of referral is key."
Council leader Grant Laing echoed these sentiments and said: "Often food banks are the first and only point of contact for people who are suffering from poverty and then they go away and come back again. It just becomes a recurring event.
"With the Cash First Partnership we'll be able to put these people on the radar basically. They'll then be able to maximise their income and hopefully provide them with more dignity in the way they spend it. It'll not be perfect for everybody who requires assistance but I think we should be pushing forward."
He pledged to help work towards trying to ensure PKC is one of the 10 pilot schemes and added: "Hopefully that will help make a difference to the residents of Perth and Kinross."
