Dáil Éireann Debate, Tuesday - 26 April 2022
1790. Deputy Éamon Ó Cuív asked the Minister for Health if an active farmer who enters a nursing home and arranges for a family member to run the farm is assessed on the capital value of the farm or the income from the farm for the purposes of the nursing home subvention scheme; if it is the former, if he has any proposal to amend the law to base it on the profit from the farm; and if he will make a statement on the matter. [20938/22]
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.
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.
Assets assessed include cash assets as well as non-cash assets such as the principal private residence, other property and land, including farmland.
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.
Transferred assets and income, defined as assets or income transferred to another person up to five years before a person's application to the scheme, are also assessed.
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.
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 a family successor is appointed to run the asset for at least 6 years. The Act also extended the three-year cap to the proceeds of sale of a principal residence. It is worth noting that under the 2021 Act, any income earned by the family successor in the running of the asset is not considered a 'transferred asset' and is therefore not assessable.
