The Irish Congress of Trade Unions (ICTU) has said that the Government should reduce water charges in order to help those on lower and middle incomes. It added that the introduction of refundable tax credits should also be made.

The comments were made by General Secretary David Begg on RTÉ's Morning Ireland.

He said that a proportion of tax credits unused by the "working poor" should be refunded to them, while further credits should be given to families with an income lower than €80,000, effectively meaning they would pay no charges.

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Mr Begg added that a budget adjustment of €800m is needed in the next budget, as opposed to the €2bn figure that has been suggested by some.

He explained: "Our €800m calculation is based on our view that the structural deficit, as it is called, that's the difference between what you raise in tax and what you spend every day, is going to close and is almost closed. Most of the money that we have to spend has to do with our debt."

(JP/IT)