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SSP MSP Colin Fox said the aim of the festival was to counter what he called "the silence in the schemes" as the rest of the city comes alive during August.
He said: "Of the Edinburgh Festival's 20,000 shows this year, virtually none takes place in the schemes.
"No leaflets are distributed there. No students unicycle up the Calder Road. No fire-eaters are found in the Fernieside.
"Furthermore, the escalating price of tickets now leaves many people feeling more and more excluded.
"The Edinburgh People's Festival will bring music and entertainment to an audience often ignored."BBC News Online