The Cabinet is to discuss a proposal tomorrow to deal with the general area of debt and debt collection.
It is understood the discussion will be based on a report by the Law Reform Commission on debt management and reinforcement in 2010.
It recommended that those who do not pay their general debts should not be jailed.
Instead it advocated a graduated process - which would see attachment orders apply to earnings but not if it deprived the debtor of a minimum standard of living.
This approach is now being adopted by the Government with proposals being formulated by the Department of Justice and the Department of the Environment.
It is understood that a minimum threshold would apply to social welfare payments so that large amounts could not be taken out.
The proposals, it is understood, would apply to water.
Although households started receiving their bills for water last month, the penalties will not apply until after 15 months of non-payment.
Separately the Department of the Environment is still looking at the issue of dealing with tenants who do not pay their water bills.
It was originally planned that unpaid chargers would be taken from tenants deposits however landlords are opposed to this.
