Councillors gave the green light to cut hot meals on wheels for pensioners, saving Wandsworth £150,000.
The decision was made during the adult social services scrutiny committee on Wednesday.
The 167 pensioners using the service will still be able to get frozen meals delivered to their front doors and have the option to apply for a microwave.
A lack of people using the service has pushed their price up to £8.82 and users have to supplement £4.75 towards the cost.
In comparison a frozen meal delivery costs £2.70, while the council has offered to help fund the costs of eligible pensioners using home delivery supermarket shopping.
A council paper said 12 part-time workers will be made redundant.
It said: "High fixed costs make the service unattractive to clients and the contract cost does not present value for money for the council.
"It is therefore recommended that this contract comes to an end on March 31, 2013."
A final decision will be made at full council on December 5.