Wokingham Council in Berkshire has banned staff from using the term "hard-working families" in its new inclusive language guide.
The council fears the phrase could offend jobless people and make them feel "undeserving".
The guidance explicitly states: "Talking about 'hard-working families' implies those who are not working are undeserving."
The controversial move has led to the authority being branded "Woke Borough Council" by critics.
"I expect the next step will be to delete the last two syllables of their name so it becomes Woke Borough Council."
He added: "More inclusive that way because the hard of understanding will get what the council's all about."
It is not the first instance of public bodies restricting language use.
Last year, Sunderland City Council banned the phrase "working class" because it was considered too British.
The controversial move has led to Wokingham Council being branded 'Woke Borough Council' by critics
Wiki Commons images (Richard Kelly)
Just days ago, Cardiff University told students not to use colloquial phrases such as "kill two birds with one stone" or "a piece of cake" for similar reasons.
The university's guidance was issued in a mandatory EDI (Equality, Diversity and Inclusion) awareness module for first-year students.
Students were also told it is a "micro aggression" to make comments such as "everyone can succeed if you just work hard enough".
Free speech campaigners criticised the university for attempting to "police" everyday language.