Fair Deal Scheme Explained (2026): How the Nursing Homes Support Scheme Works

Fair Deal, officially the Nursing Homes Support Scheme, is how most people in Ireland pay for long-term nursing home care. You pay a fixed contribution based on your income and assets, and the HSE pays the rest of the nursing home’s agreed weekly price. This guide explains how the contribution is worked out, how your home is treated, and how to apply.

How Fair Deal works in one minute

• You pay a contribution worked out in a financial assessment: 80% of your assessable income, plus 7.5% a year of the value of your assets above €36,000 (€72,000 for a couple).
• The HSE pays the balance of the home’s agreed weekly price.
• Your contribution is the same at any approved home, public, private or voluntary, whatever that home charges.
• Your home counts for 3 years only (the “3-year cap”), and you can defer that part with a nursing home loan.
• Funding starts from the date it is approved. It cannot be backdated, so apply as early as you can.

Who can get Fair Deal

Fair Deal is for people who need long-term nursing home care. A care needs assessment, arranged by the HSE, confirms that long-term care is needed. A separate financial assessment works out what you will pay. Both are part of the same application.

It does not cover short stays such as respite, convalescent care or day care, and it does not cover extra charges for things like activities, hairdressing, newspapers or therapies. Each home lists its extra charges in its contract of care.

How your contribution is worked out

A couple means a married couple, civil partners, or a couple who have lived together for at least 3 years. Some outgoings are deducted from income before the 80% is applied, including income tax, USC and PRSI, health expenses, maintenance payments, interest on a home loan and local property tax. The HSE’s figures are on its financial assessment page.

Assets given away in the 5 years before you apply still count. If you sell an asset, including your home, you must tell the Nursing Homes Support Office within 10 working days.

A worked example

Mary is single with a State Pension and a house worth €300,000, and no other savings. Her contribution is roughly 80% of her pension after allowable deductions, plus 7.5% of (€300,000 − €36,000) = €19,800 a year for the house, or about €380 a week. The HSE pays the rest of her nursing home’s weekly price. After 3 years in care her house stops counting, so her contribution falls to the income part only.

Your home and the 3-year cap

Your principal residence is included in the assessment for your first 3 years in care only. That caps the total charge on your home at 22.5% of its value for a single person (7.5% × 3 years), or 11.25% for a couple. The cap applies automatically. A family farm or business can also qualify for the cap if a family successor commits to run it for 6 years and other conditions are met.

Rental income from your home can be fully exempt if the tenancy is registered with the RTB and you apply for the exemption.

The nursing home loan

If your contribution includes a charge on property, you can apply for a nursing home loan (also called ancillary state support). The HSE pays that part of your contribution now, and it is repaid to the Revenue Commissioners later, usually from your estate within 18 months of death or earlier if the property is sold. The amount is adjusted for inflation (CPI). In some cases a spouse or certain relatives living in the home can defer repayment.

How to apply

1. Get the application form from your local Nursing Homes Support Office or the HSE website.
2. Apply for the care needs assessment and the financial assessment together. Include proof of income and assets.
3. Apply for the nursing home loan at the same time if you want to defer the property part.
4. Choose an approved nursing home once you are approved. Your contribution is the same in any of them.

If the person needing care cannot manage their affairs, a care representative, a registered enduring power of attorney or a ward of court committee can apply on their behalf.

What nursing homes cost

Each private and voluntary nursing home agrees a maximum weekly price for Fair Deal with the National Treatment Purchase Fund, and the HSE publishes the list. In October 2026 the typical agreed price was €1,290 a week, from €1,200 to €1,508. HSE public nursing homes have a higher “cost of care”, typically about €1,966 a week, because many care for people with more complex needs. See nursing home costs in Ireland and compare homes by county in our Ireland nursing home directory.

Common questions

Does Fair Deal cover the full cost?

It covers the home’s agreed weekly price for accommodation, nursing and personal care, minus your contribution. It does not cover extra charges for activities, hairdressing or therapies, which you pay to the home directly.

Can I choose any nursing home?

Yes, any home on the HSE’s approved list, if it has a place and can meet your needs. Your contribution is the same wherever you go.

Will I lose my house?

No. Your home is counted for 3 years at most, and with the nursing home loan nothing is repaid until after death or a sale.

How long does approval take?

It varies with demand and how complete the application is. Funding only starts once approved, so apply early, for example while someone is still in hospital.

This guide summarises the HSE’s published rules. For your own situation, contact your local Nursing Homes Support Office.

Reviewed by The Care Panel team on 28 October 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.