Tánaiste Joan Burton has said that a family of four adults will pay water charges below €200 per year, in a major rowback on the Government's initial water charges plan.

However, Ms Burton’s spokesman clarified this was inclusive of the €100 welfare package or the proposed €100 tax relief expected to be included in the revised water charges plan.

It effectively means a family with two adults and two children would now have a bill just under €300 – but this would be reduced to under €200 when various water reliefs are claimed.

Ms Burton was responding to claims in the Dáil from Socialist Party TD Joe Higgins that a family of four including an 18 and 19 year would to pay just under €500; with a family of five to paying under €600.

Mr Higgins asked what a family of two adults with two grown up children living at home would pay.

The Irish Times reported today that the issue of higher charges for families of dependent adult children is likely to be dealt with through a family water charges cap around the €300 mark.

In her reply to Mr Higgins, Ms Burton said the level of water charges would be “modest and will provide for this country a supply of clean water”.

“I am perfectly happy to say that it is my view that the charge in relation to the type of family and household you have indicated will be below €200.”

Her spokesman later added that Ms Burton was only expressing her view, and said work on the revised water package is ongoing at the Economic Management Council (EMC).

Mr Higgins said that many families could not afford the charges and accused the Government of “staggering from one crutch to another” to extricate itself from the controversy. He added that the water charges should be abolished.

Taoiseach Enda Kenny told the Dáil it was time for Irish Water to step up.

He said the purpose of establishing the company was to deal with a situation which was neglected for years in Ireland.

“Government is about making decisions,” he said. “We do not get it right all the time by any means and, obviously, there are times when you have to look at how decisions can be improved upon and this is one of them.”

Mr Kenny was replying to Fianna Fáil leader Micheál Martin who said that more than 150,000 people had marched on Saturday in opposition to the new utility.

There were many people not in a position to pay the charges, he added.

“Is it time, Taoiseach, to step down Irish Water?” he added.