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Fair Deal Explained

Work in progress

How the scheme works, who qualifies and how to apply.

Fair Deal is the Irish government's scheme to help pay for long-term nursing home care. You pay what you can afford. The State (HSE) pays the rest.

What is Fair Deal?

Fair Deal is the Irish government's scheme to help pay for long-term nursing home care. Its official name is the Nursing Homes Support Scheme (NHSS), and it has been running since 2009.

You pay what you can reasonably afford, and the State (HSE) pays the rest. Your contribution is worked out by looking at your income and your savings or property. If the nursing home costs more than your contribution, the HSE makes up the difference.

23,500people supported by Fair Deal (November 2024)

Fair Deal supports about 23,500 people, according to the Minister of State at the Department of Health in November 2024 (Dáil Éireann, written answer, 5 November 2024 (opens in a new tab)). It works for care in any nursing home approved for Fair Deal: public, voluntary (charitable), or a private home on the HSE's approved list (HSE, Finding the right nursing home (opens in a new tab)).

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Who Can Apply?

Anyone who lives in Ireland and needs long-term nursing home care can apply. There is no minimum age, though the scheme is most commonly used by older adults.

You must meet two conditions:

  1. You must ordinarily live in Ireland. This means you have been living in Ireland for at least one year, or you intend to live here for at least one year (Citizens Information (opens in a new tab)).

  2. You must genuinely need full-time nursing home care. This is checked through a care needs assessment (explained in the application steps below).

There is no income or savings threshold that stops you from applying. Whether you are well-off or have very little, you can use Fair Deal. The difference is how much you are asked to contribute.

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What Does Fair Deal Cover?

Covered

Fair Deal covers the main costs of being in a nursing home approved for Fair Deal:

  • Your room and bed
  • All your meals
  • Laundry
  • The nursing and personal care you need

What Fair Deal does NOT cover

Fair Deal does not pay for extras beyond standard care. You (or your family) will need to pay separately for things like:

Always ask the nursing home to give you a written list of what extra charges may apply. These will be set out in your contract with them (NHI, Guide to Nursing Home Charges for Fair Deal/NHSS Residents (opens in a new tab)).

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How Much Will You Pay?

The HSE works out how much you pay through a financial assessment of your assessable income (HSE, NHSS Application Form and Support Information, p.24 (opens in a new tab)) and what you own.

Your income

SituationRate assessed
Single person80% of weekly income
Couple (combined income)40% of the couple's combined weekly income, which is 80% of the half that is counted as yours
Rental income from your family home (if rented while you are in care)You can apply to have it made exempt entirely (HSE, Financial assessment (opens in a new tab)). If you don't, it is counted with your other income: 80% for a single person, 40% for a couple.

For example: if you receive the State Pension (Contributory) of €299.30 per week (Budget 2026 (opens in a new tab)), 80% of that is about €239. That amount goes toward your nursing home cost.

Your savings and assets

There is a disregard, a buffer amount that is not counted. Currently, the first €36,000 of assets for a single person (€72,000 for a couple) is not assessed at all.

On top of that, 7.5% of the value of what you own above the disregard is counted each year (3.75% if you are part of a couple).

Assets include cash savings, investments, and non-cash assets such as property, land, and business interests, whether held in Ireland or abroad (HSE, NHSS Application Form and Support Information, p.21 (opens in a new tab)). You also need to declare any gifts made in the last 5 years (p.7, p.8, p.22) and any outstanding loans or borrowings (p.7, p.8) on the same form.

Your contribution is the same at every nursing home

Once the HSE calculates your weekly contribution, that amount stays the same at any nursing home approved for Fair Deal (public, voluntary, or a private home on the HSE's approved list). The HSE pays the difference between your contribution and what the nursing home charges (HSE, Finding the right nursing home (opens in a new tab)).

Worked examples

Worked example 1Single person

Mary: a State Pension, some savings and no home of her ownShow

Mary is a widow. Her State Pension is ~€300 per week and she has €20,000 in savings (below the €36,000 disregard). Mary does not own a home. She lives in rented accommodation, so no property is included in her assessment.

  • Income contribution: 80% x €300 = €240 per week
  • Asset contribution: €0 (savings are below the disregard)

Mary pays €240 per week. If her nursing home costs €1,200 per week, the HSE pays the remaining €960.

Worked example 2Couple

Tom and Anne: two pensions, savings and a home Anne still lives inShow

Tom and Anne are married and have a combined weekly income of ~€600 (two State Pensions). Tom moves into a nursing home. They have €50,000 in savings between them (below the €72,000 couple disregard), and they jointly own their family home, worth €300,000. Anne continues to live there.

  • Income contribution: 40% x €600 = €240 per week
  • Asset contribution: the €72,000 couple disregard is taken off their combined savings and home together (savings first, then the home): €50,000 + €300,000 − €72,000 = €278,000. At 3.75% a year, that's €10,425 per year, about €200 per week, for up to 3 years (HSE, NHSS Application Form and Support Information, p.22 (opens in a new tab)). The rate is 3.75% because they are a couple, not because Anne still lives there. This amount can be deferred using the nursing home loan (see below) while Anne continues to live in the home, so Tom and Anne don't have to pay it week to week.

Tom's weekly contribution is €240, plus the €200 asset-related amount which can be deferred via the nursing home loan. The HSE pays the rest of the nursing home cost above that.

Note: 40% (not 80%) is used for the couple's combined income because the HSE assesses each person's share of the combined income at the single rate of 80%, which works out to 40% of the total (HSE, NHSS Application Form and Support Information, p.25 (opens in a new tab)). This also applies to couples who have been living together as partners for at least 3 years, not just married couples (same application form, p.25).

Worked example 3Renting out the family home

Brigid: single, with a home she rents out while in careShow

Brigid is single and owns her family home, worth €300,000. She moves into a nursing home and decides to rent it out for €800 per month (about €185 per week) rather than leave it empty. Her State Pension is €299.30 per week.

Because Brigid is renting out her family home while in care, she can apply to have that rental income made exempt from the financial assessment entirely (HSE, Financial assessment (opens in a new tab)). If she doesn't apply for the exemption, the rental income is instead treated as general income:

  • Pension contribution: 80% x €299 = €239 per week
  • Rental income contribution (if not exempted): 80% x €185 = €148 per week, because Brigid is a single person (a couple's income, including rental income, is assessed at 40% instead)
  • Home contribution: 7.5% x (€300,000 − €36,000 disregard) = €19,800 per year, about €381 per week, for up to three years under the 3-year cap (explained below). This amount can be deferred using the nursing home loan.

Brigid's total weekly contribution, if she doesn't apply for the rental exemption: €239 pension + €148 rent + €381 home-related = €768, of which the €381 can be deferred via the nursing home loan. If she applies for the rental exemption, that drops to €239 pension + €381 home-related, with the €381 still deferrable.

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The 3-Year Cap: Protecting Your Family Home

Many families worry that going into a nursing home means losing the family home. The 3-year cap is the rule that limits this.

How it works

If you own your home, its value is included in the financial assessment after the disregard is applied. The HSE counts 7.5% of your home's value per year (above the €36,000 single-person disregard) as part of your contribution. For a home worth €300,000, if the home is your only asset, that's 7.5% of €264,000 (€300,000 minus the €36,000 disregard) = €19,800 per year, or about €381 per week. The disregard comes off your total assets, cash savings first, so if you also have savings, less of the disregard is left to come off the home. If you are part of a couple, the rate is 3.75%: for the same home with no other assets, that works out to about €164 per week.

However, after three years, the family home is no longer counted at all, even if you remain in the nursing home for many more years. This three-year limit is called the 3-year cap.

22.5%most of the home's value counted for a single person (3 x 7.5%)
11.25%most of the home's value counted for a couple (3 x 3.75%)

So the maximum contribution based on the family home's value is 3 x 7.5% = 22.5% of its value for a single person, or 3 x 3.75% = 11.25% for a couple (HSE, Financial assessment (opens in a new tab)).

What about the family farm or business?

Since 2021, the 3-year cap can also apply to a family farm or business, provided certain conditions are met. A family successor, who must be 18 or over, commits to running (not necessarily owning) the farm or business for at least six years (HSE, NHSS Application Form and Support Information, p.32 (opens in a new tab)). The farm or business must also have been actively running for at least 3 of the last 5 years before you went into care, and the successor can only be appointed once you are already in care. The HSE places a charge on the property. Note that selling a farm or business is treated differently from selling a home. A solicitor or the HSE can advise you on the specific conditions.

If you sell your home while in care

The 3-year cap follows the money. If you sell your home while in a nursing home, the sale proceeds also qualify for the cap, but the three years still run from when you went into care, not from the date of the sale (HSE, 3-year cap (opens in a new tab)). You must contact your local Nursing Homes Support Office within 10 working days of selling the property.

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The Nursing Home Loan

Some people cannot cover their full contribution from income alone, particularly if most of what they own is their home. In that case, Fair Deal has an optional nursing home loan, officially called Ancillary State Support.

What it is

Instead of paying the part of your contribution that relates to your home every week, the HSE covers it for you. That amount builds up as a loan, tied to your home or other property within the State (HSE, NHSS Application Form and Support Information, p.26 (opens in a new tab)). You do not have to repay it while you are in the nursing home. If you sell or transfer the property while in care, the loan becomes due straight away. You must tell your local Nursing Homes Support Office within 10 working days and repay the loan to Revenue within 6 months of the sale or transfer, or interest will be charged (same source, p.27 (opens in a new tab)).

After your death, it is paid back within 18 months (HSE, Nursing home loan (opens in a new tab)). The application form still says 12 months (p.27), so confirm this with your local Nursing Homes Support Office. Bankruptcy or false information on the application can also make the loan due immediately.

This is not a commercial bank loan

The loan amount is adjusted for inflation or deflation using the Consumer Price Index (CPI) while it builds up. If you apply to the HSE for the loan, the HSE pays the amount on your behalf and registers a charge on the property (p.26 of the application form above). If the loan isn't repaid within 18 months of death, interest is charged from the date of death. After a sale or transfer, interest is charged from 6 months after the sale.

Key things to know

  • You can apply for the nursing home loan when you apply for Fair Deal funding, or later if you are already a resident in a nursing home (p.26). Applying for both at the same time is recommended: a loan applied for later is only paid from its own approval date, and approval can take several months (p.3).
  • Taking the loan is completely optional. You can instead pay the full amount from savings or income if you prefer.
  • If your spouse or partner is still living in the family home, they must apply to the National Nursing Homes Support Office to defer repayment of the loan (p.28). This is not automatic. Deferral only applies if the loan is on your main home, and only if the house is their only residence, they lived in it for at least 3 years before the original application for the loan, and they have no interest in any other property. The loan amount continues to rise with inflation (CPI) while deferred (HSE, Nursing home loan (opens in a new tab)).
  • The 3-year cap applies to the loan on your family home, the proceeds if you sell it, or a farm/business with an approved successor (HSE, NHSS Application Form and Support Information, p.30 (opens in a new tab)). A loan on any other land or property has no cap and continues to build for as long as you are in care. The cap limits the home-related contribution to 22.5% of its value for a single person, or 11.25% for a couple. Because the loan amount is adjusted for inflation while it builds up, the final amount actually repaid can be slightly more than that.
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How to Apply: Step by Step

Funding cannot be backdated

Start the application as early as you can. It is only paid from the date your application is approved, not from when you moved in.

  1. Get the application form. Download it from hse.ie/nhss (opens in a new tab) (available in both Irish and English) or collect it from your local Nursing Homes Support Office.

  2. Submit your form to your local Nursing Homes Support Office. You can do this yourself, or get help from a family member, solicitor, or social worker. The following people can apply on your behalf: your spouse or partner, a child or step-child aged 18 or over, a registered doctor, nurse, or social worker, or someone with a Registered Enduring Power of Attorney. A Decision-Making Representative appointed by the Circuit Court can also act on your behalf (Decision Support Service (opens in a new tab)). If you also want the nursing home loan (see above) to cover the part of your contribution linked to your home, you can request it on the same form. It is optional and not automatic.

  3. Care needs assessment. The HSE will arrange a visit to assess whether you need long-term nursing home care. This is done by a healthcare professional, such as a public health nurse, a geriatrician or an occupational therapist (HSE, Care Needs Assessment (opens in a new tab)).

  4. Financial assessment. The HSE will look at your income and what you own to work out your weekly contribution. You will need to provide things like bank statements, details of any property you own, and your most recent tax notice from Revenue.

  5. Approval and nursing home selection. You don't need to wait for approval to start looking: you can shortlist and visit homes once your application is sent. If your application is approved, you will be told your weekly contribution. You can choose any nursing home approved for Fair Deal (public, voluntary, or a private home on the HSE's approved list). Your contribution amount stays the same regardless of which home you pick. It's a good idea to contact your preferred nursing home as soon as possible, as there can be waiting lists (HSE, Finding the right nursing home (opens in a new tab)).

Important

If you move into a nursing home before your Fair Deal is approved, you or your family will need to cover the full cost in the meantime. Fair Deal will not cover any costs from before your approval date.

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Useful Contacts and Where to Get Help

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Key things to remember

  • Apply as early as possible. Funding only starts from the date of approval.
  • You are free to choose any nursing home approved for Fair Deal (public, voluntary, or a private home on the HSE's approved list). Your contribution does not change based on which one you pick.
  • The family home is protected after three years in care.
  • The nursing home loan is optional and is not a commercial bank loan.
  • If you need help filling in the forms, Citizens Information, ALONE, or a solicitor can all assist you.

Fair Deal rules can change. Check hse.ie/nhss (opens in a new tab) or call Citizens Information on 0818 07 4000 before making any decisions.

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