The Fair Deal Scheme: A Guide to Long-Term Care Funding
The Fair Deal Scheme provides financial support towards the cost of approved long-term nursing home care. Any person may apply, regardless of means. If approved, the resident pays a contribution based on income and assets and the HSE pays the balance of the agreed nursing-home cost. The scheme is intended to make care accessible while ensuring that each applicant contributes according to their means.
How the scheme works
An application involves two separate assessments:
Care needs assessment: an HSE healthcare professional considers the applicant's health, ability to manage daily activities, independence, and available family or community supports. The assessment must establish a need for long-term nursing home care.
Financial assessment: the HSE reviews the applicant's assessable income and assets and calculates the weekly contribution. Complete supporting documents, including bank and pension statements and property valuations, must be supplied.
What Fair Deal covers
Fair Deal covers approved long-term nursing home accommodation, food, nursing and personal care, bedding, laundry and standard aids or appliances required for day-to-day living. An applicant may choose any approved nursing home, subject to availability. The assessed contribution remains the same regardless of the approved home selected.
It does not cover respite, convalescent or day care, or additional services and charges such as hairdressing, physiotherapy, chiropody, activities or certain specialist items. These charges vary, so the nursing-home contract should be reviewed carefully before admission.
How the contribution is calculated
| Applicant | Income contribution | Asset contribution |
|---|---|---|
| Single | 80% of assessable income | 7.5% a year; first €36,000 disregarded |
| Couple | 40% of combined assessable income | 3.75% a year; first €72,000 disregarded |
Assessable income includes earnings, pensions, social welfare payments, most rental income, dividends and interest, after permitted deductions. Cash and non-cash assets include savings, investments, property, land, farms and businesses, including assets outside Ireland. Assets transferred within five years before the first application, or afterwards, are generally included. Rental income from the applicant's principal residence may be fully exempt, but a separate application and supporting documents are required.
Important: If the assessed contribution is less than the nursing home's agreed cost, the HSE pays the balance. If it equals or exceeds that cost, State support may not be payable. Fair Deal funding is not backdated.
The three-year cap
The applicant's principal residence is included in the asset assessment for no more than three years. The maximum property-based contribution is therefore 22.5% of its value for a single applicant, or 11.25% of the combined value for a couple. If the home is sold while the applicant is in care, the proceeds can continue to benefit from the cap, but the HSE must be notified and the contribution reassessed.
Farms, businesses and the family successor
A qualifying farm or business may also benefit from the three-year cap, but this is not automatic. A specific application must be made and the conditions include:
the farm or business was actively worked by the applicant, their partner or the proposed family successor for at least three of the five years before entry into care;
an eligible family successor, aged 18 or over, is formally appointed and commits to actively running it for at least six years; and
a charge in favour of the HSE is placed on the farm or business to secure compliance.
These requirements can also apply where the asset was transferred within the five-year assessment period. If the farm or business is later sold, the proceeds may be assessed as cash assets. Early succession and funding advice is therefore particularly important for farming and business families.
The optional nursing home loan
Where an applicant owns Irish property but does not have sufficient cash to meet the property-based part of the contribution, they may apply for the Nursing Home Loan (Ancillary State Support). The HSE pays that element to the nursing home and secures the loan by a charge on the property. It is usually sensible to apply at the same time as Fair Deal because a later loan application may take several months and only operates from approval.
The loan is generally repayable to Revenue within 12 months after death, or within six months if the secured property is sold or transferred while the resident is alive. CPI adjustment applies and interest may arise if repayment is late. Repayment secured on a principal residence may, subject to statutory conditions, be deferred for a spouse, partner or certain connected persons.
Why early planning matters
Not everyone will require nursing home care, but early planning can protect access to funds, reduce avoidable delay and preserve the future viability of a farm or business. Applications should be made once a need for long-term care is identified. Processing times vary, funding cannot be backdated, and private fees may have to be paid while an application is being considered.
Put an Enduring Power of Attorney in place while capacity remains, so a trusted person can deal with property, finances and relevant care decisions if required.
Review proposed gifts or transfers, business and farm succession, separate business and personal accounts, wills, special-needs provision, life loans and rights of residence before taking action.
Take coordinated legal, tax and Fair Deal advice: a transaction that is efficient for tax or succession purposes may have an adverse effect on long-term care funding.
Accurate applications and legal assistance
The application must fully and accurately disclose income, assets, transfers and later changes in circumstances. Incomplete or incorrect information can delay approval, lead to overpayment or underpayment, create difficulties during probate, and result in recovery of support, fines or prosecution. Material changes, including the sale of an asset, must generally be reported to the Nursing Homes Support Office within 10 working days.
Murphy Rice & Co. can advise on the legal aspects of Fair Deal and long-term care planning, including capacity and decision-support arrangements, property and farm transfers, family-successor applications, HSE charges, Nursing Home Loans, wills, rights of residence and estate administration.
Please note: This guide reflects HSE information available in August 2026 and is general information only. Scheme rules and personal circumstances vary. Specific legal, financial and tax advice should be obtained before acting.