How the Fair Deal Scheme Works in Ireland (2025 Guide)

The Nursing Homes Support Scheme — known as Fair Deal — is the Irish government's programme to help fund long-term residential care. For many families, it represents the difference between being able to afford a good nursing home and not being able to afford one at all.

But the asset assessment confuses most families, particularly around the family home. This guide explains exactly how the contributions are calculated, what the three-year cap means, and how to apply.

The basic principle

Under Fair Deal, you contribute a percentage of your income and assets toward the cost of care. The HSE pays the remainder directly to the nursing home. The nursing home must be registered with HIQA to participate.

The contribution is calculated as:

• 80% of assessable income (pension, rental income, etc.) per year
• 7.5% of the value of assessable assets per year

The family home and the three-year cap

The family home is an assessable asset — but with an important protection. The home can only be assessed for a maximum of 3 years, regardless of how long the person remains in care. After 3 years, the home contribution stops, even if the person is still in residential care.

This means the maximum contribution from the home is 22.5% of its value (3 years × 7.5%).

What counts as assessable income and assets?

Assessable income includes:

• State pension and private pensions
• Rental income
• Income from investments
• Employment income (if applicable)

Assessable assets include:

• The family home (subject to three-year cap and exemptions)
• Savings and investments
• Other property
• Business assets (in some circumstances)

Not assessable:

• The first €36,000 of cash assets for a single person (€72,000 for a couple)
• Assets transferred more than 5 years before the application (with some exceptions)

The application process

1. Care needs assessment. The HSE assesses whether the person needs long-term residential care. Usually done by a public health nurse or GP. The GP can assist by providing supporting documentation of the clinical need.
2. Financial assessment. The person and their representative complete a financial assessment form (NHSS1) detailing all income and assets. Supporting documentation (bank statements, pension details, property valuations) is required.
3. Nursing home choice. Once approved, the family chooses a participating nursing home. The HSE will fund the difference between the person's contribution and the nursing home's negotiated rate. Some private nursing homes charge above the HSE rate — any difference (a "top-up") must be paid by the family.
4. Ongoing review. The financial contribution is reviewed annually. If income or assets change, the contribution changes.

How long does the application take?

Allow 3–6 months for the full process. This is a significant delay — start the application before the care crisis reaches its peak. Many families apply while the person is still at home or in hospital, before committing to a specific nursing home.

In urgent situations, interim private-pay arrangements are sometimes necessary while the application is processed. The HSE can, in some cases, backdate the scheme to the date of application.

Choosing a nursing home

All nursing homes participating in Fair Deal must be registered with HIQA. Check inspection reports at hiqa.ie — reports document compliance with standards, staffing levels, and any concerns raised.

Not all nursing homes accept Fair Deal residents — verify before visiting. And be aware of top-up charges: some nursing homes charge significantly above the HSE rate, meaning the family pays the difference on top of the Fair Deal contribution.

After a death: returning funds to the estate

When a Fair Deal resident dies, the HSE does not automatically reclaim the nursing home costs from the estate. The contributions made during the person's lifetime are the extent of the family's obligation — there is no ongoing charge against the estate for care costs already covered by the HSE.

This article provides general information about the Fair Deal Scheme. Rules and thresholds change — verify current details with the HSE (1800 700 700) or hse.ie. This does not constitute legal or financial advice.