Niall Collins (Limerick West, Fianna Fail)
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Question 83: To ask the Minister for Health and Children the details of the new nursing home payment support scheme due to become operable in January 2008. [30391/07]

Máire Hoctor (Tipperary North, Fianna Fail)
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The proposed new nursing home support scheme aims to remedy the inequities that exist in the current system. At present, people face greatly different costs depending on whether they are in public or private nursing homes. In addition, individual contributions in public places are based on a flat rate regardless of an individual's wealth, whereas State support for individuals in private places is based on means-testing. This means that many people in private nursing homes get no support, and even with subvention, people can face costs they cannot afford. The result is that some people are forced to sell or mortgage their homes to pay for care costs.

In contrast, the new scheme will ensure that long-term residential care is affordable for all who need it. Contributions during a person's life will be affordable and they will not have to sell or mortgage their house to meet the contribution. Furthermore, a person's family will not have to contribute towards the cost of their care.

Under the new scheme, people who require long-term residential care will contribute up to 80% of their assessable income, whether for public or private nursing home care. Depending on the amount of a person's assessable income, there will also be a contribution of up to 5% of a person's assets.

The portion of the contribution relating to non-liquid assets, such as a person's house, may be deferred. This means that it does not have to be met during the person's lifetime and can be payable on settlement of the person's estate instead. The deferred contribution will be based on the actual number of weeks spent in residential care and on the cost of care and, consequently, may be less than 5% per annum. I would take this opportunity to emphasise that no one will pay more than the cost of their care. In addition, where the deferred contribution applies to the principal private residence, it will be capped at a maximum of 15%, or 7.5% in the case of one spouse remaining in the home while the other enters long-term residential care. This means that after three years in care, a person will not be liable for any further deferred contribution based on the principal residence. It also means that 85% of the value of the principal residence may be maintained for the beneficiaries of the person's estate. This is not something that can be guaranteed at the moment.

A person or his/her family can also choose to pay the deferred contribution at the time when care is being received instead of allowing it to be levied upon the estate if they so wish.

Where a spouse or certain dependants are living in the principal residence, the deferred contribution in respect of the residence can be further deferred until after the death of that spouse or dependant, or until such time as a person previously qualifying as a dependant ceases to qualify as such.

The final details of the Bill are being addressed at present. The Minister proposes to publish the Bill as soon as possible, following Government approval.