Thomas Byrne (Meath East, Fianna Fail)
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432. To ask the Minister for Health if, with regard to the fair deal scheme, grandchildren who are in the custody of grandparents can avail of a postponement of a nursing home loan provided that they continue to live in the dwelling; and if he will make a statement on the matter. [23404/16]

Helen McEntee (Meath East, Fine Gael)
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The Nursing Homes Support Scheme (NHSS) is a system of financial support for those assessed as needing long-term nursing home care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost.

Participants in the Scheme contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of assets held. In the case of a couple, the applicant’s means are assessed as 50% of the couple’s combined income and assets. The first €36,000 of an individual’s assets, or €72,000 in the case of a couple, is not counted at all in the financial assessment. The capital value of an individual’s principal private residence is only included in the financial assessment for the first three years of their time in care.

The nursing home loan (Ancillary State Support) is an optional benefit of the Nursing Homes Support Scheme, the purpose of which is to ensure that a person does not have to sell their home during their lifetime to pay for long-term nursing home care. Where a person’s assets include land and property in the State, the contribution based on such assets (7.5% of the value of such assets per annum) may be deferred. The loan can be repaid at any time but will ultimately fall due for repayment upon the applicant’s death. Repayment of the loan is made to the Revenue Commissioners.

Where the loan becomes repayable on the applicant's death, the repayment of the loan amount based on the principal residence onlycan be further deferred or postponed in certain cases. This is known as 'further deferral'. Its purpose is to ensure that certain individuals, for whom the asset is their principal residence, will not need to sell or re-mortgage the asset in order to repay the nursing home loan. Instead, such individuals can defer repayment of the loan for the duration of their lifetime.

Section 20 of the Nursing Homes Support Scheme Act, 2009 details the persons who may qualify for a further deferral. These are as follows:

- The spouse or partner of the applicant, where the asset concerned is their principal residence; and

- A connected person who meets the qualifying conditions set out below.

A connected person is:

- A child of the person in receipt of Nursing Home Loan (or the spouse/partner’s child) if they are under the age of 21 years or if their assets do not exceed the asset disregard;

- A sibling if their assets do not exceed the asset disregard;

- A relative in receipt of a disability or similar allowance, blind person’s pension, or the State pension (non-contributory), or whose income does not exceed the State pension (contributory);

- A relative who is in receipt of a foreign pension or allowance similar to those outlined in (c) above;

- A relative who owns a building to which the principal residence is attached (e.g. “a granny flat), or

- Any person who cared for an applicant prior to the latter entering the nursing home (this is defined by reference to relevant social welfare payments).

The connected person must also satisfy the following three conditions:

- The asset in question must be their only residence; and

- They must have lived there for not less than 3 years preceding the original application for the Nursing Home Loan; and

- They must not have an interest in any other property.

Once the criteria are met in respect of the application for further deferral, the repayment of monies to Revenue will be deferred until that person sells the principal residence or passes away (whichever event occurs first) provided that the applicant continues to meet the criteria listed above.

Only one further deferral can be granted in respect of Ancillary State Support and any person(s) who have an interest in the principal residence must provide their consent to the further deferral.

In relation to the specific query raised by the Deputy, a grandchild would be able to make an application for further deferral once the grandchild meets the criteria listed above. If the Deputy would like to further enquire about a specific case, the local Nursing Homes Support Office will be able to provide further information. Contact details for the Support Offices are available on the HSE website at .