The Island's public sector housing tenants face a rent rise of five per cent from today.
The move will see the average weekly rent for a three-bedroom commissioners' home rise to just over ?85, and comes in advance of a new system of means-testing rents next year.
Meanwhile, today sees the end of the universal payment of child benefit - with higher earning families facing cuts and some losing the benefit altogether.
A wide-ranging review of public sector housing carried out by the former social care minister Chris Robertshaw, identified the size of the gap between public and private sector rents.
The average monthly rent for a three-bedroom council house in the Island at ?373 is just over a third of that paid for a similar property in the private sector, an average ?1000.
The review said rents and service charges should more accurately reflect of the true cost of the service.
Next year the government will introduce means testing of rents, with a view to imposing further rises for those with increasing incomes and ultimately, moving some out of subsidised public sector housing.
From today child benefit will no longer be paid to parents with an annual income of more than ?90,000, while those in the ?60,000 to ?90,000 bracket will lose a proportion of their benefit.
It's thought the changes will affect 30% of Island families, saving ?2.5 million of taxpayers money.
That cash has been earmarked to support less well-off families meet the cost of nursery fees.