Scrapped €100 water grant is still being paid

A small number of people are still receiving the controversial €100 water conservation grant, despite the payment being scrapped more than a year ago.

The Department of Housing and Local Government confirmed the situation at the latest meeting of the Dáil’s public accounts committee yesterday.

Speaking during a four-hour meeting with the cross-party group as the ongoing water charges standoff between Fine Gael and Fianna Fáil threatens to bring down the Government, officials said in 2015 that €89m was made available to pay for the grant. That was the year for the latest figures.

However, despite the fact the grant was scrapped last year when water charges were suspended after the 2016 general election, department secretary general John McCarthy confirmed a small number of the 890,104 people who had applied for the payment in 2015 are continuing to receive it.

A Department of Housing spokesperson last night confirmed this rate was 3,197 in 2016 and three so far this year, and relates to cases where someone applied in 2015 but had yet to receive the payment.

“The Department of Social Protection, which administered the water conservation grant on behalf of the department, made grant payments totalling just over €89m in respect of 890,104 applications under the scheme.

A small number of residual payments continue to be made to householders who have an entitlement to the 2015 water conservation grant,” said Mr McCarthy.

Due to the fact the confidence and supply deal between Fine Gael and Fianna Fáil in the aftermath of the 2016 general election included plans to suspend water charges until at least April 1 this year, the grant first introduced in November 2014, was scrapped.

This is because it no longer served its official purpose of encouraging people to sign up to Irish Water for conservation and environmental reasons, and its opposition alleged unofficial reason of being a de facto bribe to the public to register with the utility.

The revelation that it is continuing to be paid to a small number of people is likely to lead to more questions over the chaotic nature of the Irish Water system as the Oireachtas water committee struggles to find agreement on the utility.

Meanwhile, a junior minister has said that there needs to be a “reasonable” approach to water charges and that the cross-party Oireachtas water committee needs to be given time to try to complete its work.

The committee is expected to produce a report on whether to return or scrap water charges by March 13, before its findings are voted on by the Dáil before the end of this month.

However, the standoff between Fine Gael and Fianna Fáil over the issue means it is now likely the report will be delayed a number of weeks, meaning the vote will also be pushed back, potentially forcing an election.

Addressing the issue yesterday, junior minister for the diaspora Joe McHugh said Fine Gael wants to find a solution to the stalemate.

“I’m sure people within Fianna Fáil, who I speak to privately as well, that can find a solution to this impasse,” he said.