Steve Reed, Lambeth LBC leader said: “Many people are worried about losing their jobs, and facing higher bills for items such as food and fuel. We want to help families to cope during these difficult times.
“We are also resolved to deliver the tax freeze without cutting the frontline services that residents depend on," he added.
The cabinet also agreed the council's response to the report of the Credit Crunch Taskforce, set up to examine ways of supporting residents struggling in the financial downturn.
The council will now explore how it can assist community groups to set up a local neighbourhood food co-op pilot and promote food-growing groups in the borough.
Help with lower fuel bills will come through the creation of a home visiting energy efficiency advice service.
Lambeth will look at how it expand its work with key voluntary and third sector organisations to ensure that the services provided are tailored to the needs of Lambeth people.
The council already works closely with Lambeth Credit Union and will develop that partnership to help residents.
Help for small businesses, in the shape of a telephone financial advice service is also planned.