The introduction of the housing benefit cap will reportedly be delayed until January 2012.
The Guardian reports that ministers will announce a nine month delay to the cap as councils prepare for the changes.
The cap will save £50m a year so to make up for the lost income the related housing benefit cut will be brought forward more quickly for new tenants than the planned start date of October.
But a spokeswoman at the Department of Work and Pensions, says: “It’s all speculation, we haven’t made any announcement.”
The cap on subsidised rent for private rented accommodation was unveiled in June and was expected to be introduced next year.