The Fair Deal Scheme (also known as the Nursing Home Support Scheme) was introduced in 2009 to provide financial support for people that require long term care in a nursing home.
The general rule is simple: the more assets and income you have, the more you will pay toward your care.
How Does the Fair Deal Scheme Work?
The process consists of two main stages once you’ve completed the application form:
Step 1 – Care Needs Assessment: This stage examines whether long term care in a nursing home is required.
Step 2 – Financial Assessment: At this stage, your income and assets will be reviewed to determine if you are eligible for financial support, and if so, how much support you will require.
Now, let’s deep dive and understand both states in detail:
- Care Needs Assessment
This assessment is carried out by a qualified medical professional who will determine whether you require long term care in a nursing home. This assessment may take place either in your home or in a hospital, depending on your situation.
- Financial Assessment
The HSE will assess your regular income and assets to determine whether you qualify for the scheme and if so, what your contribution will be.
- Income: 80% of all your regular income will go towards your long-term care.
Regular income can include sources such as pension payments, rental income, social welfare payments, and other recurring earnings.
What does this mean?
If I am single person and I have a regular weekly income of €1,000 I will be required to contribute €800 towards my nursing home care weekly.
It’s important to note that rental income from your main home may be exempt from consideration, but only if it meets specific criteria set by the Fair Deal Scheme.
- Assets: 7.5% of your assets will go towards you long term care.
Your assets could include your home, cash savings, development property, farms, business etc. The first €36,000 of your assets is exempt. This amount will be deducted first from your cash assets, with any remaining balance being deducted from your other assets.
Furthermore, there is a 3-year cap on your home i.e. the maximum contribution you will make on your home is 22.5% of the value, this applies from the date you enter the nursing home.
This means if your home is valued at €350,000 you will only pay a maximum of €78,750 (22.5% of 350,000)
If Assets are sold or transferred 5 years prior to the application date they are included in the assessment.
If you have a partner your contribution will be 3.75% and your exemption will be €72,000.
Optional – Nursing Home Loan
Another option is to defer your contribution related to your home through the Nursing Home Loan (also known as the Ancillary Loan).
For example, if the total repayment due to the HSE is €78,750 (350,000 * 22.5%), this amount can be deferred until after your loved one’s passing. However, you will be required to repay the loan within 12 months after the resident is deceased. This may require selling the house to cover the loan.Interest will be charged after 12 months, and the loan is also subject to changes based on the Consumer Price Index (CPI), which can reflect inflation or deflation.
How to Apply for the Fair Deal Scheme?
Applying for the Fair Deal Scheme can feel overwhelming, but breaking it down into three key steps makes the process easier:
Step 1: Complete the Application Form
- Download the Fair Deal Scheme application form from the HSE website.
- Fill in personal details, financial information, and details of the nursing home you wish to enter.
Step 2: Submit Your Application
Send your completed form to the Nursing Home Support Scheme Office. You can find your nearby offices here.
Step 3: HSE Assessment & Approval
- The HSE will review your application and determine how much you need to contribute.
- If approved, the HSE will start paying the nursing home directly.
- If your application is denied, you may appeal the decision or explore alternative financial options.
Need Help with the Fair Deal Scheme? We Can Assist!
Navigating the Fair Deal Scheme can be complex, and missing key details may result in delays or unexpected costs. That’s where Care Home Consultancy comes in.
Why Choose Us?
- Expert Guidance: We simplify the application process and ensure you understand every step.
- Financial Advice: Get clarity on how the scheme impacts your assets and inheritance.
- Faster Approvals: Avoid delays by ensuring your application is completed correctly the first time.
- Ongoing Support: From application submission to approval, we are with you every step of the way.
📞 Get in touch with Care Home Consultancy today for a hassle-free Fair Deal Scheme application process!
What Costs Are Covered Under the Fair Deal Scheme?
Under the scheme, the HSE covers essential nursing home costs, including:
- Accommodation in the nursing home
- Food & meal services
- Laundry services
- Nursing & personal care
- Basic health services
- Maintenance & Utilities
What’s Not Covered?
- Personal toiletries & grooming
- Social activities & outings
- Certain therapies (e.g., physiotherapy, speech therapy)
- Specialist equipment (wheelchairs, hearing aids)
👉 Quick Tip: Ask the nursing home for a detailed list of additional costs that may not be covered by the scheme.
Final Thoughts: Is the Fair Deal Scheme Right for You?
The Fair Deal Scheme can be a lifesaver for families struggling with the high costs of nursing home care. However, it’s crucial to understand the financial implications before applying.
- If you’re considering the scheme, seek professional financial advice to make the best decision for your circumstances.
- Always check which costs are covered and be aware of additional expenses not included.
📞 Need more information? You can contact us for expert guidance.
