Speaking at a fringe meeting on welfare reform at the Labour conference in Brighton, Christopher Smith, regional operations director of housing association Circle, said increasing numbers of households are being affected by government-imposed caps.
He said that at Circle around 25 per cent of those affected were part-paying their rent because they could not afford the full amount.
A further 25 per cent were not paying any rent, he added, leaving housing associations out of pocket.
He said that although work is being done to support families through help and advice, the situation could result in housing associations being less likely to house families who rely most heavily on benefits.
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