Fair Deal Scheme Explained: A Plain-English Guide
- Aug 4
- 6 min read
The Fair Deal Scheme, officially called the Nursing Homes Support Scheme, is a HSE-funded scheme that helps people in Ireland pay for long-term care in a nursing home by capping their contribution based on income and assets. If you are researching care options for a parent, you have probably heard the name mentioned by a hospital discharge team, a GP, or a well-meaning neighbour — usually without much explanation of what it actually means for your family. This guide sets it out plainly: what Fair Deal covers, how the contribution is worked out, and where it fits (and doesn't fit) if what you're really weighing up is nursing home care versus staying at home.
What Is the Fair Deal Scheme?
The Fair Deal Scheme is the State's financial support scheme for long-term nursing home care, administered by the HSE under the Nursing Homes Support Scheme Act 2009. It exists so that the cost of care doesn't fall entirely on one family based on which nursing home they choose — the State and the individual share the cost according to a set formula.
To access Fair Deal, two separate assessments are carried out.
A care needs assessment, usually completed by a public health nurse or HSE assessor, confirming that long-term nursing home care is required
A financial assessment, which looks at income and assets to calculate the person's weekly contribution
Once approved, the HSE pays the balance of the cost directly to the nursing home, whether it is a public facility or an approved private one. All nursing homes funded through Fair Deal must be registered with and inspected by HIQA, Ireland's health and social care regulator.
How Is My Contribution Calculated Under Fair Deal?
Your Fair Deal contribution is based on 80% of your assessable income plus 7.5% of the value of your assets per year, with the family home only counted for the first three years (a cap known as the '3-year rule', which limits the home's contribution to a maximum of 22.5% of its value).
80% of assessable weekly income goes towards the cost of care
7.5% of the value of assets (savings, investments, property other than the family home) is added each year
The family home is only assessed for the first three years, after which it is disregarded entirely
The Ancillary State Support option (sometimes called the Nursing Home Loan) allows the home's contribution to be deferred and repaid later from the estate, so nobody is forced to sell it during their lifetime
These figures and thresholds can change, and every family's assessment is different, so it's worth confirming the current rates directly with the HSE's National Medical Card Unit or a financial adviser before making decisions based on estimates.
What Does the Fair Deal Scheme Cover — and What Doesn't It Cover?
Fair Deal covers the cost of long-term residential care in a HIQA-registered nursing home; it does not cover home care, extra personal items, or optional services outside the standard care package.
Covered: accommodation, meals, and nursing and personal care within the nursing home
Usually not covered: hairdressing, chiropody, some therapies, and personal comforts outside the core package
Not covered at all: care delivered in your own home
That last point trips up a lot of families. Fair Deal is a nursing home scheme — full stop. If the goal is to help Mum or Dad stay living independently at home for as long as possible, Fair Deal simply isn't the mechanism for that, no matter how the contribution is calculated.
Does Fair Deal Help With Home Care?
No — Fair Deal does not fund home care. Support for staying at home comes through a separate route: the HSE Home Support Service, which is public and free but subject to assessment and, in many areas, a waiting list, or through a private home care provider arranged directly by the family.
This is where many families feel they've hit a dead end — assessed as needing help, but facing a wait for public home support hours while daily life becomes harder to manage. Private home care exists precisely to bridge that gap, and it can be arranged far faster than most people expect. United Irish Healthcare (UIH), a leading premium private home and healthcare provider operating nationwide across Ireland, typically has care set up within days rather than weeks.
Fair Deal vs Staying at Home With Private Care: What Should We Consider?
Choosing between Fair Deal-funded nursing home care and private home care isn't really a financial question first — it's a question about where your parent wants to be, and how much support they need to stay there safely.
If a person needs round-the-clock supervision and nursing-level oversight, a nursing home under Fair Deal may be the right and dignified choice — and this guide isn't here to argue against that
If the need is for daily support, companionship, or help with mobility, medication prompts, or personal care so someone can remain in their own home, private home care is often the better-fitting, less disruptive option
United Irish Healthcare's care ladder is built to match support to need rather than force a one-size answer:
Daytime or Visiting Care for defined hours of support during the day
Live-In Flex, a more affordable live-in option with a defined number of active care hours (typically 8) scheduled around the person's routine — ideal for low-to-medium support needs
Overnight Care, bookable alone or alongside daytime or Flex support
Live-In Constant, 24/7 live-in care delivered by a small, consistent team so someone is always on duty and always fresh — a genuine, complete alternative to a nursing home for those who wish to remain at home
Arranging any of this is not a failure to cope, and it isn't a step that replaces family care — it adds to it, giving everyone breathing room. UIH carers are vetted, insured, and based locally in communities across Ireland, matched to each client's needs and personality, which is part of why UIH is one of Ireland's highest-rated home care providers, at 4.8/5 on Google and 5/5 on Bark.
How Tax Relief Can Make Private Home Care More Affordable
Private home care can cost significantly less than families assume once tax relief is factored in. Under section 467 TCA 1997, you may be able to claim tax relief at your marginal rate — up to 40% for higher-rate taxpayers, or 20% at the standard rate — on qualifying home care costs up to €75,000 a year.
As an illustration only: for a higher-rate taxpayer, care costing €1,000 a month could effectively cost closer to €600 a month after relief is applied. Every household's tax position differs, so always confirm your specific entitlement with Revenue or your accountant before budgeting around it.
It's also worth noting that the Fair Deal Scheme itself is not static — nursing home providers have recently challenged aspects of how Fair Deal funding rates are set, a reminder that both the nursing home and home care landscapes continue to evolve. Whichever route your family is weighing, it pays to check current rules directly with the HSE before deciding.
Frequently Asked Questions
What is the Fair Deal Scheme?
The Fair Deal Scheme, or Nursing Homes Support Scheme, is a HSE scheme that helps pay for long-term care in a HIQA-registered nursing home. Your contribution is based on a financial assessment of income and assets; the HSE pays the remainder directly to the nursing home.
How much will I have to pay under Fair Deal?
Broadly, you contribute 80% of assessable income plus 7.5% of assets per year, with the family home only counted for the first three years. Exact figures depend on your individual financial assessment, so confirm your specific contribution with the HSE.
Does the Fair Deal Scheme cover home care?
No. Fair Deal only funds nursing home care. Home care is arranged separately, either through the HSE Home Support Service or a private provider such as United Irish Healthcare, which can typically set up care within days.
Can I use Fair Deal and private home care at the same time?
Fair Deal itself doesn't fund home care, so it isn't combined with private home care in the same package. Families often use private home care while waiting on assessments, or instead of Fair Deal entirely, if the goal is to stay at home.
How do I apply for the Fair Deal Scheme?
Applications go through the HSE, starting with a care needs assessment and a financial assessment. Your local Nursing Homes Support Office or a hospital discharge planner can guide you through the forms and required documents.
