Jimmy Deenihan (Kerry North-West Limerick, Fine Gael) | Oireachtas source

I thank Senator Burke for raising this matter.

The nursing homes support scheme is a generous scheme which relieves families of potentially very onerous expense and even protects the greater part of the value of a participant's main residence. However, it is also expensive. The amount allocated to the scheme in 2015 is €993 million, which is an increase of €44 million on 2014.

Under the scheme, nursing home residents contribute towards the cost of their nursing home care based on their means and the HSE pays the balance. Where an applicant's assets include land and property in the State, the 7.5% contribution based on such assets may be deferred. This is an optional loan element of the scheme which can assist an applicant with the cost of their care. The purpose underpinning the loan is to ensure than an applicant does not have to sell their house during their lifetime. The loan can be repaid at any time but will ultimately fall due for repayment upon the applicant's death.Under the Nursing Homes Support Scheme Act, the Revenue Commissioners are the appointed agents of the State for the collection of repayable moneys under the loan element of the scheme. Such moneys received by the Revenue must be paid into the Exchequer Central Fund. Since the scheme commenced in 2009, the HSE has notified the Revenue Commissioners of a total of 2,270 loans for repayment. The value of these loans amounts to €40.1 million and, as of the end of April 2015, a total of €23.8 million has been repaid.

The following arrangements apply to the collection of these amounts by the Revenue Commissioners. In the event of a death, the accountable person has 12 months to repay the loan after the date of death. Where the nursing home loan is repayable because of the sale or transfer of property, the person must repay the nursing home within six months of the date of the sale or transfer. Under the legislation, the repayment of the nursing home loan may be further deferred where certain conditions are met, for example, where the property is the principal residence of the surviving partner of the person who has died. The Senator will be aware that the nursing homes support scheme is currently the subject of a review.