One woman is losing £21 a week due to the changes and now faces having to leave Blaenavon where her family has lived for generations.
Gail Harris has rented the same three-bedroom house for 25 years and now faces the prospect of having to leave the town if she cannot find a smaller property.
Though where she can go is anyone's guess because areas with a high number of one bedroom flats would probably is where landlords want to rent them to single employed people.
She has more than £400 arrears and said the changes were "really crue".
Mr Davies told the 59-year-old he was "sorry" that she may be one of the people who could lose out.
"In other words there are some people who will lose out who don't deserve to lose out - and I believe you could be one of those and I am really sorry for that."
"That doesn't mean we can reverse the whole thing or change it, because there is a wider issue.So that's all right then Mr Davies is sorry there are people who don't deserve it loosing out
"With limited housing stock and very limited money you can't have a situation where large numbers of people are under occupying - people living on their own in social housing with two or three bedrooms.
"That situation couldn't be allowed to continue."
Mr Davies also provoked anger when he spoke to a young couple.
"You are not going to like what I have to say to you,"
he told 17-year-old Amy Evans and her partner Lloyd Mulry.
"The government have brought this in because we are in a terrible financial situation - absolutely unbelievable.
"And the days when we were able to fund people in your situation are gone."
He told Amy he would move back home if he was in their position and that Lloyd should leave Wales for somewhere like London if he could not find work in Blaenavon.
What planet is this man on?
Does he really believe that simply saying sorry or encouraging 17 year old to move to London allows him to shake off responsibility .
Even the dumbest Member of Parliament must have realised that there would be a huge problem in the amount of one bedroom flats and the number of people who would be forced to move under this new policy.
Is there a single area in the UK where the number of one bedroom flats outstrip those who will now need them?
Even if you think 17 year olds are to young to be giving social housing.or helo in the private sector. We must realise that sometimes it is impossible for them to live with their parents".
We can't simply throw them on the streets of London .Prey to exploitation by drug pushers and pimps.
Davies argument that this attack on those in need "The government have brought this in because we are in a terrible financial situation - absolutely unbelievable". would hold water if we were indeed "all in it together", but the Con/LibDem reaction is to attack the poor and vulnerable when those who caused the problem carry on receiving more in bonuses in a week than people like Gail Harris above receives in benefits in a year.
The movement have gone for the easy target shifting blame and punishment from those who have caused the problem to those on welfare . Popular with their supporters but so very unfair.