The Independent Alliance has dropped its controversial 'granny grant' proposals ahead of October's budget.

The 500 euro annual payment for grandparents who look after their grandchildren was first put forward by Transport Minister Shane Ross.

Concerns were raised over how the payment would work, and what would it cost to the exchequer. 

According to a secret briefing document seen by the Sunday Business Post, the Independent Alliance accepted that the idea had been 'shot down'.