The cash from the council's capital programme for 2004/05 will go to 22 playground schemes developed in schools, public gardens and housing estates in the London borough.
Children and young people will have a central role in devising the schemes, which are set to be completed within 18 months.
A council spokeswoman said: "Our priorities include raising educational attainment of young people and improving health. We consider improving access to play facilities is a constructive and fun way to contribute to these goals."
Last September, Southwark launched its first Out of School Childcare Strategy to improve existing facilities and create 735 new out-of-school childcare places in two years (Children Now, 15-21 September 2004).
The investment ties in with this as some of the schemes will benefit the users of after-school clubs.
