£3.5m will be used to help students from low-income families from December at the university.
The funding will be automatically handed out to recognised low-income students without needing to apply.
More than three thousand students who currently receive a bursary from the university will benefit from the 10per cent increase in payments, depending on household incomes.
Postgraduates at the University of Warwick will also receive funding to help with the cost of living.
The University of Warwick now spends £45million a year, including the new cost of living package, on support for students.
Full-time, permanent staff on lower salary bands at the university will also receive cost of living support in a one-off payment of £550 in January.
Part-time staff will receive a prorated payment.
A free online finance platform providing budgeting tools and expert advice to help people with their finances is also available to staff.
The university has also announced its facilities, including its Arts Centre, will be open for the local community to use during winter.
The Vice-Chancellor of Warwick University, Stuart Croft, said: "We know that many people are struggling with their finances right now as household budgets are being hit hard by the cost-of-living crisis."
"That includes members of our own community - and we want to do what we can to help those most in need this winter."
"That's why we're spending an additional £3.5m to support our community, including extra help for over 3,000 students from lower-income families to help ease the burden of rising bills. That money will be paid automatically into their accounts as part of our existing bursary schemes."
"We know it's a difficult time for colleagues on lower salary bands and we will make a one-off payment of £550 to offer them additional support over the winter months."
"And we are issuing an open invite for local residents to use our Arts Centre, which will offer a friendly space for people to meet and stay warm during the day."
"Unfortunately, there's a limit to what we can do given our own energy bills are forecast to rise by £13m this year. However, we believe offering real, practical support to those who need it most is the right approach to take and reflects the feedback from our community.
"Today isn't a full stop in terms of the support on offer. We will continue to work closely with our students and staff to understand what additional help may be needed over the coming months."