The Environment Minister Alan Kelly says those who claim the water conservation grant and do not pay their bills will pay "penalties and penalties and penalties".

The Department of the Environment said last week that there were no plans to change the water conservation grant with Irish Water.

It followed reports that the government was considering restricting the €100 water conservation grant to those who actually pay their bills.

Transport Minister Paschal Donohoe told Newstalk last week that while all measures at Irish Water are being kept under review, there will be no change to the structures already in place this year.

While speaking today, Minister Kelly said: "The people who register, get their €100 and don't pay their water bills will end up paying more".

"They will pay penalties and penalties and penalties".

"So while they might get their €100 up front, and while they might benefit from that, they will end up ultimately less well off," he added.

Mr Kelly told Newstalk Lunchtime people who try to side-step the system will pay more.