Leicestershire County Council has set aside £2 million to cover the cost of assisting the inquiry into Greville Janner's alleged sexual abuse of boys in its care.
The authority ran the children's homes in the city and county, where the former Labour politician allegedly met, groomed and sexually assaulted boys.
It believes the £2 million will cover the cost of legal representation and digging out documents and other relevant material from its past.
It said the cash would also would cover the cost of supporting the welfare of alleged abuse victims.
The council will give an account of its actions to the Independent Inquiry into Child Sexual Abuse, (IICSA) later this year.The inquiry may cast more light on the actions of the county council in the case of Frank Beck, with whose offences the allegations against Janner are intertwined.