Tax Return Guides

Your Simple Guide to the Fair Deal Scheme in Ireland

See our Tax Return Services Get a Quote

Nursing care costs in Ireland can be expensive, but the Fair Deal Scheme is here to help. This scheme, run by the HSE, makes care more affordable by asking you to pay only what you can afford. The State then covers the rest. In this guide, we’ll explain what the Fair Deal Scheme is, who can apply, how it works, what it covers, and so much more.

Here’s what we will cover:

What is the Fair Deal Scheme?

The Fair Deal Scheme is a financial support programme run by the HSE that helps people pay for long-term nursing home care. Instead of paying the full cost of care, you pay based on what you can afford, and the State covers the rest. The scheme covers public, voluntary, and certain private nursing homes approved by the HSE.

Who can apply for the Fair Deal Scheme?

Anyone who is ordinarily resident in Ireland and needs long-term nursing home care can apply. You’ll need to have a care assessment to see if you need care and a financial assessment to determine how much you’ll pay.

How does the Fair Deal Scheme work?

The scheme has two key parts:

  1. Care needs assessment: A healthcare professional will assess if you require long-term nursing home care.
  2. Financial assessment: Based on your income and assets, you’ll contribute a portion of the care costs, and the State will cover the rest. You can also apply for the Nursing Home Loan to defer some payments until after your death.

What is the Nursing Home Loan?

This is an optional loan from the State that covers the asset-based part of your care costs (e.g. from property). The money is paid back after your death from your estate. It’s especially helpful if you own property but don’t want to sell it during your lifetime.

What does Fair Deal cover?

The Fair Deal Scheme covers the cost of long-term care in approved nursing homes. This includes:

  • Accommodation and food
  • Nursing and personal care
  • Laundry services
  • Basic aids and appliances

What’s not covered by the Fair Deal Scheme?

  • Hairdressing, physiotherapy, and other optional services.
  • Social activities, entertainment, or outings.

What will you pay under the Fair Deal Scheme?

Most people will pay 80% of their income and 7.5% of the value of their assets each year toward their care. If you’re part of a couple, you pay 40% of combined income and 3.75% of assets. You’ll never pay more than your means allow.

What is the 3-year Cap?

If your main home, farm, or business is part of your assets, the 7.5% annual charge is capped at 3 years, so you’ll only contribute a maximum of 22.5% of its value. This cap can also apply to family-owned farms or businesses in certain cases.

How to apply for the Fair Deal Scheme?

Applying for the Fair Deal Scheme might seem complicated, but it’s a straightforward process once you know the steps. Here’s a simple breakdown of what you need to do:

  1. Get the application from the HSE website: You can download the Fair Deal application form directly from the HSE website. You can also request a copy by post if needed. Make sure you have the most up-to-date version of the form. It includes sections for both the Care Needs and Financial Assessments.
  2. Fill out the Care Needs Assessment: This section checks if you need long-term nursing home care. A healthcare professional will review your health and daily living needs. The assessment may involve a visit or a review of your medical records. You must meet this care requirement to qualify for the Fair Deal Scheme.
  3. Fill out the Financial Assessment: This section looks at your income, savings, and assets to decide how much you’ll pay. You pay a portion based on your means, and the State covers the rest. This ensures the scheme is fair and affordable for each person. If you own property, it will also be considered in the calculation.
  4. Apply for the Nursing Home Loan (Optional): If you can’t pay your full share right now, you can apply for a loan from the HSE. This is called Ancillary State Support. The loan is paid back later, usually after your home or estate is settled. You must request this loan in writing as part of your application.
  5. Submit application: Once all sections are complete, send the form to your local Nursing Home Support Office. The HSE will review your application and contact you with a decision. If approved, you can then choose a nursing home from the approved list.

How to choose an approved nursing home?

You must pick a home from the HSE’s approved list to receive funding. Consider the home’s location, services, reputation, and any extra fees. The HSE publishes a list of participating homes and their costs.

What if your circumstances change after you apply?

You can request a review of your financial assessment if your circumstances change, such as:

  • The death of your partner or spouse
  • An increase in income for you or your spouse/partner
  • The sale of an asset
  • Legal separation
  • An increase in cash savings
  • The family member inheriting your home, farm, or business can’t meet the requirements of the 3-year cap

Recent changes to the Fair Deal Scheme you should know

Since February 2024, if your main home is rented out while you’re in care, that rental income won’t be counted in your financial assessment. This means you can keep 100% of the rental income.

Need advice and claiming a tax credit for nursing home care?

At Tax Return Plus we specialise in providing tax advice in relation to financial decisions such as the Fair Deal Scheme and Inheritance Tax. Tax relief, at a potential rate of 40% can be claimed by the payer on Nursing Home costs or employing a medical carer (Homehelp) in your home. This tax relief can go a long way to helping with these substantial costs. If you require a consultation or advice, please contact Tax Return Plus and request a call back from a member of our team of experts.

FAQs about the Fair Deal Scheme

Can you appeal a Fair Deal Scheme decision?

Yes. If your application is declined, you can appeal to the HSE. The appeal must be made in writing within 40 working days of the decision.

What happens in a Fair Deal Scheme when a person dies?

When the person in care dies, any money owed under the Fair Deal Scheme must be paid back, usually from their home or savings. The HSE will contact the family or executor to sort this out. If they took out the Nursing Home Loan, it needs to be repaid within 12 months.

How long does it take for Fair Deal approval?

It usually takes 4 to 6 weeks to get approved for the Fair Deal Scheme. This depends on how quickly your care and financial assessments are completed.

Categories