Thomas Gould (Cork North Central, Sinn Fein)
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1337. To ask the Minister for Health if changes to the fair deal scheme introducing three year caps apply to cash assets. [42476/21]

Mary Butler (Waterford, Fianna Fail)
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The Nursing Home Support Scheme (NHSS), commonly referred to as 'Fair Deal', is a system of financial support for people who require long-term residential care. The primary legislation underpinning the NHSS is the Nursing Home Support Scheme Act 2009. Participants in the NHSS 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.

The Nursing Homes Support Scheme (Amendment), which was signed into law on 22 July, introduced further safeguards in the NHSS to further protect the viability and sustainability of family farms and businesses. It also includes an amendment in relation to applying the 3-year cap to the proceeds of sale of a house while a resident is in long-term care.

Within the NHSS, the asset value of a principal residence is assessed for 3 years, with 7.5% of its value going towards the cost of care. After 3 years on the scheme, the value of the property is no longer assessed. However, under previous rules, if the property was sold, the resulting cash asset was assessable in full for the entire length of stay in care. This could act as a disincentive for those who might otherwise consider selling their homes. The 2021 Act now extends the 3-year cap to cover the proceeds of sale, so that a person who sells their home will not see an increase in their contributions. Extension of the 3-year cap to the proceeds of sale is fair, is in line with the purpose of the Act, and will remove a disincentive to selling a vacant home.

Cash assets that are not the proceeds of the sale of a primary residence are not covered by the 3 year cap and these assets continue to be included in the NHSS financial assessment regardless of the amount of time an individual has spent in care.