PENSIONERS in public housing will be giving back most of their 2009 pension rises due to a rental hike, says Isaacs MP Mark Dreyfus.

He said the state government had "ripped away" a deal with the federal government to "quarantine" the pension rise from public housing rental calculations.

For pensioner Anton Bennett, it means his $30 a fortnight pension rise has been largely lost by a rent rise of $19.50.

"That $30 had already been absorbed by the cost of electricity and everything going up. It's now like we never got it though we would be even worse off now without it."

Mr Bennett is a diabetic and advised to eat healthily, including the leanest cuts of meat. His food bill is half of his income, after rent is taken out - "I'll have to start buying less healthy food".

Mr Dreyfus said he would continue "fighting for the 23,900 pensioners in my electorate and making sure they get a fair go."

A spokeswoman for state Housing Minister Wendy Lovell said other states had done the same as Victoria and the deal was not intended to be permanent.

"The change has been made to restore fairness and equity so that all public housing tenants in Victoria are paying a proportionally equal rent of 25 per cent of their household income - it is not fair to have a two-tiered system."

She said under the deal, the government had foregone about $26 million in rental income - the equivalent of 100 new homes or 1000 refurbishments.