Government minister Mo Mowlam visited Brighton today to launch a campaign encouraging residents to give to charities, not beggars.
The Begging For Change scheme encourages people to put money into collecting boxes for homelessness charities in shops.
Speaking at the launch of the scheme, Dr Mowlam said it would help people to give in a more constructive way.
The Cabinet Office Minister also praised The Argus, which ran a Don't Give To Beggars campaign.
She said: "In other cities where the local paper has helped and promoted this type of alternative giving scheme, it really has made a difference. I would like to thank the Argus for all the help and support it has given this scheme.
"We are not saying do not be a human being - if you stop that, that would be a crime. We are saying use that emotion and put your money in one of the collection boxes.
"This will help people deal with their addiction and their mental health problems and in the end will be better than giving directly to people on the streets."
The Argus' campaign encourages people to channel their money through official charities so it does not end up in the pockets of drug dealers.
Dr Mowlam said she had given money to people in the streets in the past.
She said: "Since we started planning this scheme I have stopped giving change to people on the streets because I believe this scheme can make a difference.
"If you keep giving to people on the streets you can help many of them feed their habits."
Dr Mowlam's visit came a day after Brighton and Hove was named as a city for the new millennium.
She said: "Brighton really deserves to be a city. It's a great city and its new status should help it promote itself in terms of tourism. What we have got to make sure that we do is to do everything we can to help the community of Brighton and Hove."
Government's homelessness tsar Louise Casey called on residents to take responsibility to make sure Begging For Change would be a success.
She said: "If people are dying in the streets of Brighton and Hove we can't be proud of it. We know that drug dealers are trying to get to the people living in hostels and poor accommodation. They are trying to get them to sell the drugs from their rooms and their flats. This is frightening."
Home Office minister Lord Bassam of Brighton said: "The Begging for Change scheme is the right approach because the people that need the help need proper support services.
"What they do not need is money to feed their habits. What we are now seeing in Brighton and Hove is a complete change in our approach to giving."
Begging for Change collection boxes, which are sponsored by The Argus, have been placed in cafes, shops and other public buildings.
The money goes to St Patrick's Trust, which provides accommodation for the homeless; Equinox, which offers support to street drinkers; Aspire, which provides full-time work for homeless people; and Brighton Housing Trust, which provides detox facilities.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article