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A cap on the allowance will also mean some 21,000 people lose an average of £74 per week.
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These include a ban on "flipping" the designation of MPs' first and second homes and a tighter cap on the accommodation allowance.
The local housing allowance (LHA) cap is set to see new residents of supported and sheltered housing, managed by housing associations, have their rent levels capped to the allowance rate in the private-rented sector.
The cap on local housing allowance payments (the housing benefit paid to people in the private rental sector), which came into effect last month, is already causing an upheaval of families in central London, as parents who are no longer able to afford the rent on their family homes struggle to find alternative accommodation.
A cap on the total emissions allowed within the scheme is set, and allowances adding up to the cap are provided to the companies regulated by the scheme.
Screw the cap on securely.
The introduction of caps on the local housing allowance rates means less private rented stock is available to people on benefits," Mr Rouse said.
Directly challenging Labour Mr Osborne also announced changes to the benefits system including an annual "welfare cap" on the cost of benefits and a seven day delay before jobseekers allowance can be claimed.
A cap on local housing allowance that came into force in April could lead to an increase in the number of social tenants who are evicted, the charity warned.
Cap-and-trade programs are designed to lower emissions gradually by reducing the cap and the allowances that are available.
Owen Bowcott Osborne moved to place a cap on the £157bn UK welfare budget by introducing controls on spending on housing benefit, disability allowances, tax credits and some pensioner benefits.
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