Employed people will be able to “jump” the housing waiting list with the introduction of a new quota.
In a pioneering move, Brighton and Hove City Council is considering allocating half its available properties to those in work.
It is believed this is the first time in the UK that a local authority will allocate housing in this way.
The Tory administration states it is a way to offer affordable housing to those on low paid jobs, such as street cleaners and shop workers.
But opposition councillors claim the 50% quota is too high, stating it will force the vulnerable out of the city.
Housing cabinet member Maria Caulfield said: “Residents on full housing benefit can access the private rented sector fairly easily as their benefits will cover their rent.
“But for those on a low income, either owning a home or renting one just isn't realistic.
“I have had numerous residents say for them to give up work and go on to housing benefit is the only way they can put a roof over their families head.
“This does not sound like justice to me.”
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