People using the Fair Deal nursing home scheme are set to benefit from the Government’s defeat of Sinn Féin’s motion calling for the eviction ban to be extended on Wednesday.

The Government defeated the motion by a majority of 83 votes to 68, including five votes from the Regional Independent Group of TDs.

In return for their support in the controversial vote, the rural independents demanded that the Government commit to changing the rules on rental income for homeowners using the Fair Deal scheme.

Currently, people utilising the Fair Deal scheme pay 40% of any rental income from their primary home towards the cost of care.

Reducing that figure to zero was one of the Independent TDs’ demands, in exchange for their support for the Government in Wednesday’s vote.

What does this mean for Fair Deal homeowners?

Under the proposed Fair Deal reform, residents in long-term nursing home care will pay 0% of the rental income on their home towards their nursing home care (income taxes will be deducted).

The Independent TD group’s list of eight demands also included increasing refurbishment grants and introducing a tax relief scheme for small landlords.


At present, when people apply to the Fair Deal scheme, their financial assessment sets out how much they will pay towards the cost of their nursing home care.

Residents in the scheme contribute up to 80% of their assessable income and a maximum of 7.5% per annum of the value of their assets.

This initially included income from the rental of their primary home.

A measure introduced last November under Housing for All reduced that rental income contribution towards care to 40%.

Therefore, under the existing Fair Deal scheme, if a resident’s home is being rented out, they can apply to pay only 40% of this rental income towards nursing home care in their financial assessment.

This means they can keep 60% of the rental income if the home is their principal residence. The amendment proposed by the RIG will see those in long-term care under the Fair Deal Scheme keep 100% of this income.

For more information on how to apply to the Fair Deal Scheme, click here.

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