Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

We are discussing Seanad amendments Nos. 2 and 46. These amendments bring forward a change to the nursing home support scheme, also known as the fair deal, to remove disincentives that might prevent applicants to the scheme from renting out their principal residence once they enter long-term residential care. While the scheme is the responsibility of the Minister for Health, this amendment was brought forward by my Department through the Regulation of Providers of Building Works and Building Control (Amendment) Bill 2022. These amendments address action 19.8 in the Housing for All strategy. Within the nursing homes support scheme a person's income is assessed with 80% of it going towards the cost of their care. This new amendment would change the rate of their assessment from 80% to 40% for rental income from a person's principal residence. A reduction in assessment to 40% is expected to incentivise the rental of around 1,200 additional properties. The 40% rate is also expected to help mitigate some of the risks identified with proposals to reduce the rate of assessment to zero. Six months after the amendments have been brought into operation the Government will review the policy and based on a report will decide on potentially further lowering the rate at which rental income is assessed.

Overall this amendment supports the Government policy's intention to remove disincentives against the rental of homes owned by participants in the fair deal scheme, which might otherwise remain vacant.

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