Most families would be exempt from water charges, under a new system being put forward by an expert group.

The group wants water to be funded through general taxation - with households only paying if they use a wasteful amount.

Its final recommendations are set to be released tomorrow. They will then be referred to a committee of 16 TDs and four senators, who in turn will put a final plan before the Dáil and Seanad.

The expert group was set up as part of the government deal between Fine Gael and Fianna Fáil in May of this year.

The only households who would have to pay for water charges, under its proposals, are those who were considered to be using water 'wastefully'.

The permitted level of use would be determined by the energy regulator.

However the extra charges created as a result of the system may necessitate the arrival of new taxes in other areas, in order to make up for the revenue lost in household water charges.

Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News: