The Government has allocated €123 million to help Irish Water make up for the revenue shortfall arising from the suspension of water charges.

A Government spokesman said €110 million in savings from the suspension of the water conservation grant would be allocated to Irish Water, along with €13 million in funding from the Department of the Environment.

The water charges were suspended from July 16th until April 17th of next year, when an expert commission on the future of water charges is due to report.

The seven-member commission has five months to report back to an Oireachtas committee, which will then vote on its recommendations.

The funding agreed by the Government on Tuesday is designed to tide Irish Water over until that report is issued. However, because it is unlikely that water charges will be reinstated next April, another shortfall in revenue will likely emerge.

The Government plans to allocate another €124 million for the rest of next year if no alternative funding model is put in place by April.