Dáil Éireann Debate, Tuesday - 26 July 2022
1884. Deputy Richard Bruton asked the Minister for Health the way that the sale of the home of a person within fair deal scheme and the rental of such a home are now treated within the assessment of support to be undertaken by the State for that patient’s care. [40978/22]
View answerThe Nursing Homes Support Scheme (Amendment) Act 2021, which was signed into law on 22 July 2021, and commenced on 20 October, introduces further safeguards in the Nursing Homes Support Scheme (NHSS) to further protect the viability and sustainability of family farms and businesses. It also includes an amendment in relation to applying the 3-year cap to the proceeds of sale of a house while a resident is in long-term care. This addresses the first relevant commitment in the Housing for All Strategy (action 19.7).
Within the NHSS, the asset value of a resident's home, known in the Scheme as the "principal residence", is assessed for 3 years, with 7.5% of its value going towards the cost of care (3.75% in the case of a couple). After a person has been in care for 3 years, the value of this property is no longer assessed. In practice, this generally reduces the nursing home fees of those maintaining their home, from year four onwards. The 2021 Act now extends the 3-year cap to cover the proceeds of sale, so that a person will be able to sell their home without incurring additional fees from their fourth year in long-term residential care onwards. This applies even if the home is sold before 3 years in care, the proceeds of sale will be assessed up to the 3-year point but excluded from assessment after that.
The Government has approved a policy change to the NHSS, to incentivise applicants to the Scheme to rent out their principal residence after they have entered long term residential care. The rate of assessment for rental properties will be reduced from 80% to 40% for income from all principal residences. This will be reviewed after six months of operation, with the potential for further amendment after that point.
This policy change addresses the commitments made under the Housing for All Strategy (action 19.8). The change is being made through a Committee-Stage amendment to the Department of Housing, Local Government and Heritage’s Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022. The Bill was approved by the Oireachtas on 30 June and was signed into law by President Higgins on the 5 July. However, there will be a further period before the Act comes into force, in order to allow for administrative and operational changes, as well as any other necessary arrangements, to be put in place.
