Local residents have accused the broadcaster of misrepresenting life on the Shadsworth council estate in Blackburn by asking youths to put their hoods up while filming.
It is also alleged that programme makers edited out positive aspects of the estate they'd filmed, instead focusing on issues such as vandalism and drink and drug problems.
"As someone who has lived in Shadsworth for the past 14 years, I am horrified. They chose Shadsworth as an easy target," councillor Jim Shorrock told The Telegraph.
"Constituents tell me of young lads being asked to pull their hoods up 'for effect', and working people being edited out simply because they work. I despair if this is true.
"I sincerely hope this doesn't look like an episode of Shameless, because it could set my ward back 20 years."
The show described the area as "one of the most deprived places in the country", adding that it "on average, per person, had one of the highest welfare bills in the country".
Mary Anderson and Alison Critchley, from the Shadsworth Tenants' and Residents' Association, explained that producers led them to believe the documentary wouldn't be one-sided.
"They have scandalised our home. The filmmakers asked me for help. I was concerned but they promised they would highlight the positives and give a fair picture," Anderson said.
"When I saw the title I felt I had been misled and the estate was being misrepresented. There are lots of good things in Shadsworth, investment and many good people.
"We run many clubs and events at the community centre - jobs clubs, breakfast clubs for older people, support for those with mental, drug and alcohol problems."
Critchley expressed concern that the programme would impact house prices, insisting that crime rates had fallen for three consecutive years.
A BBC spokesman said: "In response to Councillor Jim Shorrock's comments, it is categorically untrue that the programme team sought to influence the behaviour of anyone they filmed and certainly didn't ask them to put up hoods, as is evident from the youngsters featured in the film.
"We didn't edit out anybody on the basis that they worked - indeed working people are featured in the film. We were clear that our intention was to show a true picture of life on the estate and while the programme shows the difficulties that some of the residents face day to day, we believe it is a fair portrayal."