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How is the fair deal scheme calculated?

an image showing fair deal calculations

The fair deal scheme is calculated in two different ways. The first is for single people; the second is for couples. The calculation of what the HSE will pay is based on two core elements, income and assets.

What you pay will depend on what you earn and own, but use our fair deal calculator below to get a guide on what you will need to contribute.

Fair Deal for a Single Person

The calculation for your contribution differs depending on whether you are in a cohabiting relationship or applying as a single person.  Some essential points must be remembered when calculating what you will need to pay towards your care. 

You will only be asked to pay the amount your care costs; this figure will be agreed upon between the HSE and your care provider.

As a single application, you will always retain 20% of your income or  20% of the Non-Contribution Pension, whichever is greater.

Fair Deal Calculator for a single application

The calculation for a single person is relatively simple on paper.

The amount you will pay for your care is based on 80% of your income, with the exception of rental income on your primary home; this is then reduced to 40%.

You also pay 7.5% of the pecuniary value of your assets per annum.  with HSE paying the difference between contribution and cost.

 *The first €36,000 of your assets are not counted in the equation. This means you will always retain equity in your property.

Fair Deal Calculator for a Couple

Similarly to the single-person calculation, you need to know some extra information as a couple. 

As with a single application, you will only be asked to pay the amount your care costs; this figure will be agreed upon between the HSE and your care provider. 

If you apply as a couple, you will retain 60% of your income or state pension, whichever is more significant.

The amount you will pay for your care is based on 40% of your combined income and 3.75% of the value of your assets per year, with HSE paying the difference between contribution and cost.

*The first €72,000 of your assets is not counted in the equation. This means you will always retain equity in your property.

Exceptions

If you are lucky enough to own land or property, the 7% for a single applicant or 3.75% for a couple can be deferred and collected through the revenue service after your death. You can also delay the asset contributions by applying for an “options nursing home loan.”

Can you be refused the sheme?

Yes, it is possible to be refused the fair deal scheme. In the cases refused in the last three years, the majority rejected because the applicants(s) have been considered “wealthy” and can afford their care.

The total number of applicants in the last 36 months is 29,961. Only 379 were rejected or denied.

What happens to assets when in fair deal after person dies?

Under the fair deal scheme, you are not required to pay the amount back to the HSE during your lifetime. The amount owed can be collected after your death once your assets, such as your home, have been sold.

If you leave a surviving partner in your home, then your partner can apply for a deferral until they pass away.

What percentage of house does fair deal take?

The HSE is essentially providing a loan to cover the cost of your long-term care in a nursing home; the loan can be collected upon death. But this is an optional extra, and the loan can be paid back at any time.

If you decide to pay back the loan upon death, then the amount taken by the state will depend on how much they have had to lend you for your care.

The amount of contribution based on your assets for a single person per year is 7.5%  and for a couple is 3.75%.

Estate Agents North Dublin

If you are looking for a valuation for the fair deal scheme or just want an idea of your property’s value, Leonard Keenan Wilson can help.

As North Dublin’s most experienced estate agent, we can service any requirements on your property.

Contact us today for a free valuation or advice.

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