The Transport Minister Paschal Donohoe denies there is a rift in the coalition about the water conservation grant.

It comes after the government confirmed there would be no further changes to payment of the grant.

The Department of the Environment said yesterday: "There are no changes to the water conservation grant scheme".

"The Department of Social Protection are currently making arrangements to pay the grant for this year. Minister Kelly is not bringing any measures to Cabinet on water".

It is understood Fine Gael backbenchers wanted the conservation grant to be linked to paying your water bill.

That is a move which had reportedly been overruled by the Finance Minister Michael Noonan.

But Mr Donohoe denies there is any conflict within the government over the issue.