The cost of water charges is likely to be offset by a €100 social welfare payment to every household in Ireland.
According to the Irish Independent, the payment will be made over the course of a year in four €25 payments to everyone who registers with Irish Water.
Group political editor of the Irish Independent Fionnán Sheahan said the Government looked at administering the payment through Revenue but decided against it.
"It would have been awkward. They'd have to go through employers and a tax credit wouldn't quite suit and tax relief would take anything up to a year," he said.
"They're now looking at a single delivery method where everyone would get the €100 from the Department of Social Welfare. The most direct comparison you could make would be child benefit."
Meanwhile, Health Minister Leo Varadkar said the different figures being suggested for the water charge are confusing the public.
Earlier this week, Táanaiste Joan Burton said the cost for a family with two adult children would be €200, far below previous estimates.
Leo Varadkar said there was a big issue around affordability, but he would not say whether he agreed with the Tánaiste on how much the charge would be.
Minister Varadkar said there were too many figures being cited and that was not helpful to the public.
"The last thing we need now is Ministers coming out with all sorts of different figures as to what people are going to have to pay," he said.
"I think that's a big part of the problem actually - that even people who support water charges and know it makes a lot of sense, are confused and concerned about affordability and how much they're going to have to pay."