Lambeth Council’s number crunchers have taken on the credit crunch and come up with a series of solutions to help soften the impact of the financial crisis, including the local authority offering mortgages to residents.

According to council statistics, the recession is already starting to bite, with people claiming unemployment benefits increasing by 6 per cent on the start of the year, and an increasing number of businesses asking for hardship support.

In response the council’s Credit Crunch Taskforce - believed to be the only one of its kind in the country - has come up with 16 initiatives to help people living in the borough.

These include food co-operatives, where food could be bought cheaper in bulk by groups, and the proposal for councils to have the option of offering mortgages through funds provided by central Government.

The council says its findings are based on extensive research with local residents, financial experts and other councils.

It has also urged more people to contact them to take advantage of its Every Pound Counts scheme - that ensures residents receive all the benefits they are entitled to.

Currently 50 per cent of residents do not claim their fair share of benefits and help.

“Lambeth Council has a healthy financial position because of strict financial discipline and efficiency savings, “ said Councillor Jim Dickson, credit crunch taskforce chairman said.

“But like all local authorities, we have inevitably been hit by rising fuel costs and energy bills.

“Our aim is to prevent people falling into a never ending debt spiral and turning to loan sharks.

“We hope to do this through a variety of measures. If we succeed, the taskforce’s effects will be seen in homes across Lambeth.”

Anna Turley, deputy director of the NLGN and member of the taskforce said: “We found up to 50 percent of individuals still don’t claim their fair share of benefits and help.

“That’s unacceptable and Lambeth’s report is leading the way.

“Councils need to work harder in communities, through children’s centres, GPs surgeries and places where people meet up to help residents get what they are entitled to.

“It is ideas like this that will make a real difference to people in tougher times and I hope that the report will be not just implemented by Lambeth but considered by other local authorities as well.”

For more information go to lambeth.go.uk or call 020 7926 1000.

• For an essential online guide to saving money during the credit crunch visit our money section.