Noel Grealish (Galway West, Independent)
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544. To ask the Minister for Health if consideration will be given to changing the rules of the fair deal scheme to enable families and persons who are in nursing homes under the fair deal scheme to sell or rent their houses without financial penalty to help increase the number of properties available for purchase and rent and therefore help to alleviate the housing crisis; and if he will make a statement on the matter. [54062/18]

Jim Daly (Cork South West, Fine Gael)
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The Nursing Homes Support Scheme (NHSS), commonly referred to as Fair Deal,is a system of financial support for people who require long-term residential care. Participants contribute to the cost of their care according to their means while the State pays the balance of the cost. The Scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone and that people are cared for in the most appropriate settings.

Participants in the Scheme contribute up to 80% of their assessable income, such as their pension and a maximum of 7.5% per annum of the value of assets held, such as their principal private residence or cash assets. The first €36,000 of an individual’s assets 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. This is known as the three year cap. No participant will pay more that the actual cost of care.

Under NHSS rental income is considered income for the purpose of the financial assessment, and is assessed at 80% less any allowable deductions.

Action 17 of the Strategy for the Rental Sector commits the Department of Housing, Planning, and Local Government (DHPLG) to examine the treatment under the Nursing Homes Support Scheme's financial assessment of income from the rental of a person's principal private residence where they move into long term residential care. The Department of Health is currently engaging with the DHPLG in this regard.

It also is worth noting that the decision to rent out a home resides with the home-owner, therefore creating the possibility of older people in nursing homes becoming landlords and taking on the many responsibilities associated with that role. This would involve the consideration of many practicalities. As such, there are significant complexities in examining changes to the NHSS, particularly to ensure the ongoing fair, equitable and sustainable operation of the scheme. As a result there are competing interests and issues that must be fully considered.