The social housing budget in England is to be cut by more than 50% in the Spending Review, the BBC understands.
Council housing "for life" will also be phased out, with the needs of new council tenants assessed over time.
Despite the cuts, ministers are likely to set a target of building 150,000 affordable homes, changing the way councils charge rent to finance them.
Tenants will be charged nearer the going market rate, to release cash for the building programme.
'Greater flexibility'Ministers are expected to introduce a "flexible tenancy" for people who move into council housing for the first time.
Tenants will be checked over a period of time to see if they still require help with housing from their local authority, the BBC has learned.
In August Prime Minister David Cameron suggested tenants in England should get fixed-term contracts and be moved on if their finances improve.
He said greater flexibility was required within the social housing system, allowing tenants to move to find work.
But Lib Dem deputy leader Simon Hughes said his party was against the idea, which was not coalition policy.
Posted: Mon Oct 18, 2010 10:31 pm