The Fair Deal Scheme (Ireland)

The Fair Deal Scheme (also known as the Nursing Homes Support Scheme) is a government initiative in Ireland that aims to provide financial assistance to people who require long-term residential care in a nursing home. This scheme helps cover the cost of nursing home care for individuals who cannot afford it on their own, offering a fair contribution to the cost based on the individual's income and assets.

You must apply to the Fair Deal Scheme. You will be required to submit your application to your Local Nursing Home Support Office. From there, you will be required to complete a Care Needs Assessment, followed by a Financial Assessment. The Financial Assessment works out how much you can pay towards your nursing home care, the HSE pay the remaining balance.

What does the Fair Deal Scheme Cover?

The scheme applies to long term nursing home care only.

The scheme covers the cost of:

• Accommodation

• Food

• Laundry service

• Basic aid and appliances needed for support for daily living

The Fair Deal Scheme does not cover short term care (e.g. respite, convalescent or day-care).

Criteria for Qualification

To qualify for the Fair Deal Scheme, applicants must meet several eligibility requirements:

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Directors: Fergus Murphy & Jonathan McDonnell. Registered in the Republic of Ireland No. 594003

Registered Office: Unit 1B, The Mulcair Centre, Annacotty Business Park, Limerick

1. Residency:

• The applicant must be ordinarily resident in Ireland.

• This means that the person must live in Ireland for a minimum of 12 months before applying or be able to demonstrate that they intend to remain in Ireland for the foreseeable future.

2. Age Requirement:

• The scheme is available to all individuals who need long-term residential care, regardless of age. However, it is typically used by older individuals, often those who are over 65 years of age.

3. Assessment of Care Needs:

• The applicant must undergo an assessment of care needs by a nurse or a doctor, which will determine the level of care required. The level of care needed will influence the level of financial support provided under the scheme.

• This assessment is typically conducted in a hospital or nursing home setting.

4. Financial Means:

• The scheme assesses the applicant's income and assets to determine the level of contribution they need to make towards the cost of care.

The assessment considers:

1. Income: This includes pensions, social welfare payments, and any other income sources.

2. Since 1 February 2024, if you own your home and are renting it out to a tenant while you are in a nursing home, you can apply to keep 100% of this rental income, instead of having to pay some of it towards your nursing home care. This means you can keep all the rental income from renting your own home.

3. If the property you are renting is not your own home, you must pay 80% of the rental income to nursing home care.

4. Assets: These include savings, property, and other financial assets.

The family home is considered part of the assessment, though certain rules apply.

• The contributions are designed to be affordable, and the scheme sets limits on how much an individual can be required to contribute towards the cost of care. The total contribution is divided between the individual’s income and assets.

5. Family Home:

Castle Capital Ltd t/a Castle Capital Financial Planning, Castle Capital Mortgages and Castle Capital Corporate is regulated by the Central Bank of Ireland.

Directors: Fergus Murphy & Jonathan McDonnell. Registered in the Republic of Ireland No. 594003 Registered Office: Unit 1B, The Mulcair Centre, Annacotty Business Park, Limerick

• The family home is considered an asset, but a person may qualify for a deferred payment arrangement if they are required to contribute towards care costs but wish to keep their family home.

• A maximum contribution of 7.5% of the value of the family home (or proceeds of the sale) per year is allowed (up to a maximum of 3 years), but this is payable over time, and the payment can be deferred until the individual passes away or sells the home.

• ‘3 Year Cap’: After 3 years, you will not give any further payment based on the family home, even if you are still getting long-term nursing home care.

• If you have already been in a nursing home for 3 years when you apply for the scheme, then you do not pay the 7.5% on your home

6. Application Process:

• An application for the scheme is made by submitting a form to the Health Service Executive (HSE).

• The applicant will need to provide documentation regarding their financial situation, including income and asset details, as well as their care needs assessment.

Financial safeguards

As part of the Financial Assessment, the following safeguards are in place:

• You will not pay more than the actual cost of care

• You keep a personal allowance of 20% of your income or 20% of the maximum rate of the State Pension (Non-Contributory), whichever is more

Transferred Assets

The assessment will look at assets that you have transferred since applying for State support or in the 5 years before the application. For example, any land, money or property you have given to another person. Castle Capital Ltd t/a Castle Capital Financial Planning, Castle Capital Mortgages and Castle Capital Corporate is regulated by the Central Bank of Ireland.

Directors: Fergus Murphy & Jonathan McDonnell. Registered in the Republic of Ireland No. 594003
Registered Office: Unit 1B, The Mulcair Centre, Annacotty Business Park, Limerick

Payment of your contribution

If you select a public or voluntary nursing home, you pay the contribution to the HSE, and the HSE will then pay the nursing home. If you select a private nursing home, you pay your contribution to the nursing home and the HSE pays the rest. Financial support will only be paid if the nursing home is identified as being appropriate to your needs.

Payments after death

When a person dies who used the Fair Deal Scheme, the following information must be sent to the HSE at least 3 months before distributing the assets of their estate:

• A Schedule of Assets - this is a list of all real and personal property and assets owned by the person at the time of their death

• Notice in writing of the intention to distribute the assets

If you fail to do this, you may be personally responsible for the repayment of any potential overpayment of the Fair Deal Scheme.

Advantages of the Fair Deal Scheme

1. Financial Assistance:

The Fair Deal Scheme provides significant financial assistance, reducing the burden of high nursing home costs on individuals and families. It ensures that those in need of residential care are not excluded due to financial constraints.

2. Equitable Contribution:

Contributions to the cost of care are based on the applicant’s ability to pay, ensuring that individuals are only required to pay what they can afford, making care more accessible to a wider range of people.

3. Deferred Payment on the Family Home:

The option to defer payment on the family home means that individuals can continue to live in their family home while receiving care, without the immediate need to sell the property.

4. Comprehensive Coverage:

Castle Capital Ltd t/a Castle Capital Financial Planning, Castle Capital Mortgages and Castle Capital Corporate is regulated by the Central Bank of Ireland.

Directors: Fergus Murphy & Jonathan McDonnell. Registered in the Republic of Ireland No. 594003
Registered Office: Unit 1B, The Mulcair Centre, Annacotty Business Park, Limerick

The scheme covers the majority of nursing home care costs, including accommodation, food, medical expenses, and personal care. It ensures that residents in nursing homes receive a reasonable standard of care without financial stress.

5. Simplicity and Transparency:

The application process is straightforward, with clear eligibility criteria and a transparent means-test procedure.

6. Choice of Care Providers:

The scheme allows individuals to choose from a wide range of public, private, and voluntary nursing homes that participate in the scheme, providing more options for applicants.

Disadvantages of the Fair Deal Scheme

1. Contribution Towards Assets:

While the scheme is designed to provide financial support, individuals are required to contribute a portion of their assets towards the cost of care, which can be significant for people with substantial savings or property.

2. Ineligibility for Certain Assets:

While the family home is included in the asset assessment, it can be difficult for applicants to access the scheme if they have significant other assets (e.g., savings, property), as these are also considered in the financial assessment.

3. Limited Coverage for Home-Based Care:

The Fair Deal Scheme only applies to long-term residential care and does not provide support for individuals who require home-based care, which might be a preferred option for some people.

4. Long-Term Financial Burden:

For individuals who require care for an extended period, the ongoing contributions, can become a long-term financial burden, potentially depleting family assets.

5. Complexity of the Means Test:

Castle Capital Ltd t/a Castle Capital Financial Planning, Castle Capital Mortgages and Castle Capital Corporate is regulated by the Central Bank of Ireland.

Directors: Fergus Murphy & Jonathan McDonnell. Registered in the Republic of Ireland No. 594003
Registered Office: Unit 1B, The Mulcair Centre, Annacotty Business Park, Limerick

Some people find the means-test procedure difficult to understand, and there can be concerns over the fairness of asset evaluations, especially in terms of the family home and other significant assets.