Brighton and Hove Council has accepted an offer to pilot a radical shake-up of housing benefit.
Work and Pensions Secretary Andrew Smith said the move would help to combat rogue landlords and antisocial tenants.
Under the long-planned scheme, tenants will be paid a flat rate housing allowance to cover their rent costs.
If they move to cheaper accommodation, they will be allowed to keep the difference. At the moment tenants make a claim based on their rent level and income.
The change is designed to simplify the system and prevent unscrupulous landlords colluding with tenants to drive up rents.
Rent will also be withheld from tenants deemed to be antisocial.
Mr Smith said nine out of ten councils who had been invited to take part in the Pathfinder pilots had accepted.
He added: "This is an exciting opportunity for these councils to lead the way in bringing in this new Housing Benefit system.
"It will be a better deal for private tenants and landlords, making it easier for people to move from welfare into work.
"This radical strategy is about choice and responsibility."
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 The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.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