The Coalition has revised down the water charge caps further, with the effective charge for families now standing at €160.
Single adult households will now pay an effective €60 rate. Both figures are lower than expected, and are inclusive of the €100 water conservation payment deduction.
Irish Water staff will not be paid any bonuses for 2014 and the entire pay structure is to be reviewed.
Staff are being briefed on the new approach at the semi-state’s headquarters in Dublin this afternoon.
An Irish Water spokeswoman clarified that the bonuses for 2014 were due be paid in 2015, but said this would not now happen.
When asked if bonuses for work done in 2015 - which would be paid in 2016 - will still be available, the spokeswoman said would be a matter for the independent review of pay structures.
A statement from Ervia, Irish Water’s parent company, said performance related bonus would not be paid for 2013 either.
“Ervia has decided not to pay 2014 performance related awards to Irish Water employees,” the statement said. “This includes any performance related allowances being considered in relation to 2013.”
An Ervia spokesperson said: “The decision reflects the fact that at the end of 2014, Irish Water has not yet earned sufficient public confidence.
“We made this decision in the best interests of Irish Water and the wider Ervia group to show we are listening to the public.”
The company has initiated an independent review of the pay model that applies in Irish Water. This review will recommend an appropriate pay model that will be applied in the future. The new Ervia Board and the Government (as shareholder) will be asked to approve any pay model before it is implemented for Irish Water.