Alex White (Dublin South, Labour) | Oireachtas source

I thank Deputy Kirk for raising this issue. Under the nursing homes support scheme, individuals contribute up to 80% of their assessable income and a maximum of 7.5% of the value of any assets per annum towards their cost of care, as the Deputy mentioned. The first €36,000 of an individual's assets, or €72,000 in the case of a couple, is not counted in the financial assessment.

An individual's principal residence is only included in the financial assessment for the first three years of their time in care. This is known as the three year cap. The three year cap also extends to farms in circumstances where all three of the following criteria are met in an individual case: the person has suffered a sudden illness or disability which causes them to need long-term nursing home care; the person or their partner was actively engaged in the daily management of the farm up until the time of the sudden illness or disability; and a family successor certifies that he or she will continue the management of the farm. In the case of couples, the measure applies where the applicant suffered a sudden and unforeseen illness and either or both members of the couple have been engaged in the running of the family farm. This stipulation is in keeping with the key principle of joint assessment of couples.

The three year cap was extended to farms because there was concern about the potential impact of the scheme on the sustainability of family farms, particularly in situations where care is required from an early age and for a prolonged period. It was intended to ensure the financial sustainability of farms in cases where a person suffered a sudden illness and did not have an opportunity to put appropriate succession arrangements in place. It affords additional protection because it ensures a person's maximum contribution is fully quantifiable.

The Deputy will be aware that the nursing homes support scheme is the subject of a review which will consider the long-term sustainability of the scheme as well as looking at related aspects of home and community care. Work on the review is ongoing. It is expected that the review will be completed in early 2014 and the report will then be made publicly available.

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