Dáil Éireann Debate, Wednesday - 7 October 2020
243. Deputy Richard Bruton asked the Minister for Health if he has concluded discussions on the possibility of encouraging the renting out of vacant homes of persons availing of the fair deal scheme by applying a lower rate of contribution to nursing home costs from this source or by other means; and if he has assessed the number of homes that might fall into this category. [29176/20]
View answerThe Nursing Homes Support Scheme (NHSS), commonly referred to as A Fair Deal, is a system of financial support for people who require long-term residential care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost. The Scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.
Under NHSS rental income is considered income for the purpose of the financial assessment, and is assessed at 80% less any allowable deductions. Allowable deductions include income tax and, therefore, any income tax arising from rental income should be deducted; other deductions include some health expenses, levies required by law to be paid, and interest on some loans in respect of a person’s principal private residence.
Action 17 of the Strategy for the Rental Sector commits the Department of Housing, Local Government and Heritage (DHLGH) to examine the treatment, under the Nursing Homes Support Scheme's financial assessment, of income from the rental of a person's principal private residence where they move into long term residential care. This government has committed to “reform the Fair Deal scheme to incentivise renting out vacant properties” in the Programme for Government.
The Department of Health is currently engaging with the DHLGH in this regard to examine the policy and legal implications on this issue. Any changes to the treatment of rental income under the Scheme require careful policy analysis and consideration and if changes were to be proposed primary legislation would be required to give effect to them.
