The Government has estimated that 27,000 Ukrainian refugees who benefit from temporary protection will receive reduced payments within three months following a decision by the Cabinet.
Ministers have signed off on the plan brought by Taoiseach Simon Harris, Minister for Social Protection Heather Humphreys, Minister for Integration Roderic O'Gorman and Minister for Justice Helen McEntee.
The reduced payments will apply to Ukrainians who do not work and live in what is termed 'State-provided serviced accommodation', such as a hotel where meals are provided.
It will not apply to Ukrainians living in what is termed 'pledged accommodation', such as people living in homes which have been leased to the State.
It also will not apply to Ukrainians who live in State-provided accommodation that is not serviced, such as a converted school building.
Last December, the Government reduced payments to new arrivals - from March - from €232 a week to €38.80.
Now the lower payment will become the baseline for all Ukrainians in such circumstances.
Labour Party leader Ivana Bacik expressed serious concern that this could amount to targeting of older people and women with children who cannot work.
She has called for "clarity" that the new Government policy will be fair and not target the weakest in society.
Taoiseach Simon Harris has defended the approach, saying on his way into Cabinet, that it does not seem sensible that two children from Ukraine in the same school are treated very differently.
Mr Harris said that Ireland "is a compassionate country, but compassion does need to align with common sense".
"It doesn't seem sensible to me that you would have two children from Ukraine in the same school today in a very different system of treatment for one person's family versus the other," Mr Harris said.
In addition to having a "consistency of approach" Mr Harris said it had to be "financially sustainable."
46,981 Ukrainians in State-provided accommodation - Dept
According to the latest report issued by the Department of Integration there were 46,981 Ukrainians living in State-provided accommodation, such as hotels and guesthouses, as of the 5 May.
The department gives the number living in pledged accommodation as 18,752 on that date, and it is not believed that they will be effected by the change.
Just 521 Ukrainians who arrived since 14 March are living in designated accommodation sites and are in receipt of reduced financial supports of €38.80 per week.
More than 100,000 Ukrainians have come to Ireland under the temporary protection directive since March 2022, following Russia's invasion of the country.
However, some have since left the country, and in the last CSO 'Ukrainians in Ireland' update in February, around 80,000 had activity on their PPSN allocation in the previous three months.
Just under 18,000 Ukrainians were registered as being employed in the same CSO update.
Last December, the Cabinet agreed to reduce welfare rates and to limit State accommodation for new arrivals from Ukraine to 90 days.
Under the new plan to be considered by ministers, all beneficiaries of temporary protection will receive the same rate of payment, regardless of when they arrived in Ireland.
There will be a 12-week lead-in time before the changes take affect.
It would mean that the current jobseekers' rate of €232 per week will fall to €38.80 for Ukrainian refugees in State accommodation.
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Review into entitlements for asylum seekers
Meanwhile, the Cabinet was also due to order a review of entitlements for asylum seekers applying for International Protection, with a report to be completed within six weeks.
On this, the Taoiseach said the Government "are not just reviewing payments, we are reviewing the entire range of supports".
"For example, you have many people living [here] who have status in this country, who have come through the immigration system, who are living in free State accommodation without making a contribution, how do you best address that situation," Mr Harris said.
The Department of Integration said that around 5,700 people who have been granted protection status or leave to remain in Ireland continue to live in International Protection accommodation.
That is around one in five people of the record 30,000 people currently living in IPAS accommodation.
The Taoiseach said that Ireland "would always live up to its international obligations" and that he wanted Ireland "to be in line with the European Union" when it came to supports.
Mr Harris said that he did not think that "anyone could argue that if we didn't take these measures that the system would be sustainable into the future" given the increase in numbers arriving in Ireland seeking protection in recent years.
The Taoiseach said that Ireland would meet its obligations to provide shelter to asylum seekers.
Other initiatives include Minister for Enterprise Peter Burke ordering an increase of the inspections of workplaces to ensure regulations are being enforced.
Minister for Justice Helen McEntee is also due to report back to Cabinet shortly on her ongoing review of safe countries.
Once a country receives such a designation, applicants for International Protection must have their cases decided within a maximum of 90 days.