Wyre Councillors have pleaded with residents not to go onto the new scheme.
Families all around the Fylde Coast who have already switched to Universal Credit no longer face having their benefits capped as the Government make another U-Turn.
The work and pensions secretary has ditched plans to extend a benefits cap on families of more than two children.
Amber Rudd said those with children born before the system was introduced would remain exempt, as she aimed to ensure it was "compassionate and fair".
The Child Poverty Action Group said the decision was "fantastically good news".
However, the group is still calling for the two-child cap to be scrapped for all other families.
A group of Wyre Councillors wrote to the Government to postpone the scheme until it had been revised.
Cllr: Lorraine Beavers pleaded with residents not to make the switch:
"You do not have to universal credit and less your circumstances change."
"You will be far worse off than you could ever believe."
She went on to say that the payments didn't work for families with more than two children:
"If your family have got four children, you're only claiming for two of them because universal credit does not recognise families that have got more than two children, which is absolutely ridiculous."