Updated: 13:05

The Government has approved a deal on water charges following long negotiations between Labour and Fine Gael.

The average bill per household will be €240 per year. Households will receive a free allowance of 30,000 litres, with an additional allowance to cover normal water usage for children under 18.

The deal will also mean the standing charge is scrapped, while certain homes will be given a larger free allowance than others.

A final decision on water charges will not be made until later this year, however, and the final details will be determined by energy regulators.

It has been three weeks since a cabinet meeting ended in disarray with no deal on the shape of the water charges regime.

But after three weeks of tense talks, last night Phil Hogan said a deal had been reached - and that Fine Gael and Labour were now agreed on how much Irish households should expect to pay from October.

As expected, the standing charge is abolished - and as previously indicated, the average bill will remain at around €240 a year, with every household getting a free allowance linked to the number of children living there.

But the government's agreed that the disabled, pensioners and carers will have an extra free allowance on top of that, of roughly €100 a year.

And instead of pushing up the average charge for everyone else, that allowance will come out of the social welfare budget.

Speaking to our political correspondent on his way into Government Buildings Enda Kenny confirmed a deal had been done and said the charge will be as fair as it can be:Brendan Howlin explains how the allowances will work: Tánaiste Eamon Gilmore says it's a fair and reasonable package of measures: