Councils around the UK could roll out a scheme pioneered by Westminster Council, in which those who work are prioritised for housing benefit.
The scheme penalises the unemployed by pushing them further down the queue.
Families currently applying for housing benefit in Westminster are assessed on a point scheme. From January, an additional 50 points will be available for those in work or who can show they have been actively looking for work.
Other criteria include medical needs (250 points) and overcrowded accommodation (300 points).
The additional 50 points for those that contribute to the economy could see hundreds of Westminster families move up the waiting list.
The scheme could gain traction as the Coalition looks to cut the cost of benefits.
During Tuesday's conference speech in Liverpool, Labour leader Ed Miliband attacked the “something for nothing culture”.
He said: “The hard truth is that, even after reforms of recent years, we still have a system where reward for work is not high enough, where benefits are too easy to come by for those who abuse the system and don’t work for those who do right thing.
“When we have a housing shortage choices have to be made.
“Do we treat the person who contributes to their community the same as the person who doesn’t?
“My answer is no. Our first duty should be to help the person who shows responsibility.”
Speaking to The Evening Standard, Housing Minister Grant Shapps, said:
"Hardworking families instinctively know that the 'something for nothing' culture has to end and so it's right that councils are able to reflect local priorities in their housing policy."
"Local authorities of all political persuasions are introducing measures to ensure that people who work hard, play by the rules and are responsible, get fair access to housing in this country."
However, some housing groups have reacted angrily to the scheme.
Speaking to The Huffington Post UK, Alison Gelder, director of Housing Justice, said: “It is a basic human right for people to have a home and that shouldn’t be conditional on behavior or their ability to work.
Gelder conceded that Westminster Council is simply “gatekeeping a scarce resource”.
“We think the best answer is to built more social housing rather than more stringent gatekeeping,” she said.