It follows a major review by the Department of Social Protection that found the State was paying well in excess of market value to private landlords in many parts of the country.
The reductions in rental payments to landlords by social welfare tenants will amount to as much as €270 a month in some parts of the country.
The government aims to save €22m a year on its €500m annual rent bill, paid to landlords for social welfare tenants.
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Letters are being issued advising welfare tenants of the new maximum levels set for their rental supplements when their lease is due for renewal.