Rents for almost 10 per cent of public housing tenants will rise by up to $300 a week under a state government decision to cut discounts.

On Sunday, NSW Minister for Family and Community Services Pru Goward announced the removal of the rent discount for public housing tenants who were not eligible based on their income.

Cutting the discounts: A new state government decision will see rents for almost 10 per cent of public housing tenants rise. Credit:Brendan Esposito

It will mean affected tenants living in a two-bedroom flat in Waterloo will pay an extra $200 a week. In Newtown, rents will rise by up to $245 a week and in Glebe, by up to $300 a week. The rent for a four-bedroom house in Blacktown will increase by $200 a week.

''If a tenant is … ineligible for a subsidy from the government, it is only fair they pay the proper market value, just as tenants in private rental properties have to,'' Ms Goward said. ''I understand some tenants may see a rent increase but my priority is ensuring we are doing the best we can to offer public housing properties to those who really need it, and who don't have an alternative.''