Dáil Éireann Debate, Tuesday - 18 April 2023
1515. Deputy Carol Nolan asked the Minister for Health if he will provide an update on the operation of the fair deal scheme and the changes which are being made relating to rental income; and if he will make a statement on the matter. [17041/23]
View answerEffective from 1 November 2022, the amount of rental income that nursing home residents can retain under the Fair Deal from renting their principle private residence increased from 20% to 60%.
Prior to this change being implemented, participants in the Fair Deal scheme were able to rent out their homes or other assets, however rental income was subject to assessment at 80% like all other income (such as pension income).
Recognising that this may act as a disincentive against renting out a property, the Government approved a policy change to the Nursing Homes Support Scheme, “Fair Deal”, to remove a disincentive for applicants to the Scheme to rent out their principal residence after they have entered long term residential care. The rate of assessment for rental income from a principal residence is reduced from 80% to 40%. This means that for someone renting out their principal residence, they retain 60% of the income accrued from that rental and 40% is assessed under Fair Deal.
Under the terms of the amended legislation, this policy change will be reviewed after six months of operation at the end of April 2023, with the intention for further amendment after that point if necessary and examining any unintended consequences and potential safeguarding issues.
It should be noted that rental income accrued from property that is not a principal private residence will continue to be assessed at 80%.
This policy change addresses the commitments made under Housing For All Action 19.8. The change was 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 which is in operation as of 1 November.
Further details are available at: www2.hse.ie/services/schemes-allowances/fair-deal-scheme/financial-assessment/#rental-income-for-your-home.
In addition, under the provisions under the Civil Law (Miscellaneous Provisions) Act 2022, NHSS clients who are in receipt of Accommodation Recognition Payment are to have this payment disregarded from their financial assessment. This means that nursing home residents who make their principal private residence available to Ukrainian refugees can claim this payment without affecting their contribution to cost of their own care. The payment is paid through the Department of Social Protection. Further details regarding eligibility and how to apply are available at: services.mywelfare.ie/en/topics/ukraine-emergency-supports/accommodation-recognition-payment/.
These measures will allow residents in Fair Deal to keep more of their income and will also help address pressures on the rental market. It is important that residents who choose to rent out their homes do so in a safe and supported way. The well-being, safety and comfort of nursing home residents remains a priority for me.
