Housing Minister Grant Shapps introduced a new 'freedom pass' to move from home to work to be closer to family, and also pledged a new National Affordable Housing Swap Scheme.
However, the Federation believes that changing security of tenure for existing social housing tenants should "not be on the table".
Helen Williams, Assistant Director at the Federation said: "It may be for some people that renting from a council or housing association for a short-term could be the base from which they can build up to buy or rent in the private rented sector. But, there are lots of issues to consider, like the impact on people’s behaviour if they thought they might have to move if they bettered their circumstances, for these reasons we would expect government to take its time to discuss these issues with tenant groups and social landlords.
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"It is also worth bearing in mind that currently very few people living in social housing are earning the kind of money that suggests they could buy or cover rent levels in the private rented sector, with just 10% of households having incomes of more than £20,900."
However, the government believes the new 'freedom pass' will lift people out of poverty and free them to take chances to improve the quality of their own lives.
Mr Shapps said: "As we work to tackle the record budget deficit we must ensure vulnerable people benefit from, but don't become trapped by, the safety net that social housing provides.
"That's why I'm putting tenants in the driving seat, with a new opportunity to see people like them looking to exchange social homes not just in their area but across the country, through a new National Home Swap Scheme."
(CD)
