Dáil Éireann Debate, Tuesday - 8 March 2022
671. Deputy Éamon Ó Cuív asked the Minister for Health the purposes of the nursing home support scheme; if the assessment for farms is based on the asset value of the farm, income from the farm or both; the way that this is calculated for the purpose of assessing means under the scheme; and if he will make a statement on the matter. [12957/22]
View answerThe Nursing Homes Support Scheme (NHSS), commonly referred to as 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 residential care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.
One of the key principles of the scheme is that nobody will pay more than the actual cost of their care, and a participant will only pay for the amount of time they actually spend in care.
All participants within the NHSS contribute up to 80% of their income (40% if part of a couple) and 7.5% per annum of the value of their assets (3.25% if part of a couple). The first €36,000 (€72,000 if part of a couple) is excluded from assessment. For the purposes of financial assessment, income includes:
- Earnings, including income from farming or business activities
- Pension income
- Social welfare benefits/allowances
- Rental income
- Income from holding an office or directorship
- Income from fees, commissions, dividends or interest
- Any income which you have deprived yourself of in the five years prior to application.
The financial assessment will also establish the value of non-cash assets such as the principal private residence, other property and land, including farmland.
The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care. This is known as the three-year cap, which is intended to protect the value of a principal private residence, along with the other safeguards built into the Financial Assessment which ensure that
- Nobody will pay more than the actual cost of care;
- A participant will keep a personal allowance of 20% of their income or 20% of the maximum rate of the State Pension (Non-Contributory), whichever is the greater, and;
- If a participant has a spouse or partner remaining at home, they will be left with 50% of the couple’s income or the maximum rate of the State Pension (Non-Contributory), whichever is the greater.
Provisions exist in the legislation to allow certain deductions from the financial assessment when calculating an applicant’s contribution to care. The definition of ‘Allowable Deduction’ in relation to income as per the legislation includes the following:
(i) income tax required by law to be deducted or paid from income
(ii) social insurance contributions
(iii) levies required by law to be paid
(iv) payments in respect of interest on monies borrowed for the purchase, repair or improvement of the principal private residence of the person
(v) health expenses to which Section 469 of Taxes Consolidation Act 1997 applies
(vi) payments in respect of the maintenance of a child, a spouse or a former spouse under a separate agreement less the amount of any relief from income tax which may be claimed in respect of such payments
(vii) certain qualifying redress schemes.
(The above should be read in conjunction with the Legislation and the National Guidelines. The full text of the legislation can be accessed by following this link: https://www.irishstatutebook.ie/eli/2009/act/15/enacted/en/print.html )
Last year, the Department of Health introduced the Nursing Homes Support Scheme (Amendment) Act 2021, which became operational in October. This introduced a three-year cap on contributions from family farm and business assets, provided that certain conditions are met. The Act also extended the three-year cap to the proceeds of sale of a principal residence.
