Plans to cap social housing benefit at the same rate as the Local Housing allowance (LHA) have been scrapped.
Prime Minister Theresa May confirmed the government has reversed its decision.
Sinn Féin MLA Carál Ní Chuilín welcomed the announcement.
She said: "The Tory threat to impose a cap based on LHA rates within the social and supported housing sector has been abandoned in the face of overwhelming criticism.
"The Federation of Housing Associations here had warned it would undermine the feasibility of supported and social housing schemes with a particularly bad impact in rural areas. They also warned that many social housing tenants would not to be able to afford their rents if the cap was imposed.
"Therefore many social housing tenants will be greatly relieved at this latest u-turn from Theresa May's government which has been pursuing a relentless and ideologically driven onslaught against the most vulnerable in our society."
(CD/MH)
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