Affordable Homecare in Ireland – Fair Deal Scheme and Tax Relief Explained
Securing affordable homecare in Ireland often starts with identifying the financial supports that apply to your situation. The Fair Deal Scheme covers long-term residential nursing home care, while eligible care costs may qualify for tax relief that helps older persons remain safely at home.
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The Nursing Homes Support Scheme funds long-term residential nursing home care, while eligible homecare costs may qualify for tax relief at the person's marginal rate, which may be up to 40%, depending on the Revenue rules that apply.
Families can review state funding options, care needs assessments, and tax relief routes before deciding how to fund care.
A specified person can apply for the Fair Deal Scheme on behalf of an older person who needs support with the application process.
The financial assessment for the Fair Deal Scheme includes a 3-year cap on contributions from a principal private residence.
The scheme does not cover short-term care such as respite, convalescent care, or day-care, or extra nursing-home fees for services such as hairdressing, therapies, or activities.
Planning Affordable Homecare and Residential Care Support
Homecare affordability is a significant concern for many families across Ireland. Knowing what financial support is available can make a meaningful difference in accessing appropriate support for loved ones at home.
The Fair Deal Scheme and various tax relief options offer pathways to more affordable homecare and residential care.
Comfort Keepers proudly supports individuals of all ages and abilities, including individuals with disabilities, in remaining comfortably and safely in their own homes.
What is the Fair Deal Scheme?
The Fair Deal Scheme, formally known as the Nursing Homes Support Scheme, is a government initiative designed to provide financial assistance for long-term nursing home care. Currently, it does not fund homecare services.
The application process includes a care needs assessment and a financial assessment. This helps confirm if long-term nursing home care is suitable and what contribution may apply.
What Does the Fair Deal Cover?
The Fair Deal Scheme provides financial support for essential long-term nursing home costs, covering accommodation, basic nursing care, and daily personal care assistance.
This support is available across approved public, private, and voluntary nursing homes, ensuring residents receive core services vital to their comfort and well-being.
What Costs Are Not Covered?
The Fair Deal Scheme excludes certain personal expenses, like hairdressing, social outings, therapies, and extra amenities.
The scheme also does not cover short-term care, such as respite, convalescent care, or day-care services, or extra nursing-home fees for services such as therapies and activities.
Identifying these uncovered costs allows families to budget effectively and maintain comprehensive, individualised care for their family member.
Applying the Fair Deal Scheme to Homecare
While the Fair Deal Scheme does not cover homecare services, Comfort Keepers offers guidance on alternative funding options, such as HSE home support services, and helps families review what support may be available for homecare.
Who Qualifies for the Fair Deal Scheme?
Eligibility for the Fair Deal Scheme is based on several criteria, including age, residency, and care needs. The main criteria are outlined below:
Age and Residency Requirements
Applicants must be ordinarily residents of Ireland, meaning they have lived in the country for at least a year or intend to live there for at least a year.
Care Needs Assessment
A Health Service Executive (HSE) healthcare professional conducts a care needs assessment to determine if long-term nursing home care is the most appropriate option. This assessment evaluates the individual's ability to perform daily activities and their current use of health and personal social services.
Financial Assessment
The financial assessment calculates the applicant's contribution towards care costs based on income and assets. Applicants contribute:
80% of their assessable income
7.5% of the value of any assets per annum
The first €36,000 of assets for a single person (€72,000 for a couple) is excluded from the assessment. The principal private residence is subject to a 3-year cap, meaning it is only included in the financial assessment for the first three years of care.
Families comparing supports may also find our Carer's Support Grant guidance helpful when reviewing wider state-funded care options.
Considerations for Couples
For couples, the financial assessment considers half of the combined income and assets. The contribution is calculated as:
40% of the couple's combined assessable income
3.75% of the couple's combined assets per annum
The first €72,000 of assets is excluded from the assessment. The principal residence is only included in the financial assessment for the first three years of care.
For further guidance on the application process, required forms, and document submission, visit the HSE Fair Deal application page.
How Much Could You Pay Towards Fair Deal Costs?
Putting these figures together gives a clearer picture of what a household might actually pay.
For a Single Person
For a single person with an assessable income of €20,000 per year and assets of €200,000, excluding the first €36,000, the annual contribution would be €16,000 from income, based on 80%, plus €12,300 from assets, based on 7.5% of €164,000.
The principal private residence is only factored in for the first three years of care, which can significantly affect the total asset calculation after that point.
For a Couple
For couples, the same logic applies to the combined figures, with the contribution rates halved to 40% of combined income and 3.75% of combined assets. The €72,000 asset exclusion and the 3-year cap on the principal residence apply in the same way.
Check the Current HSE Assessment Guidance
These figures are illustrative only and should not be treated as a personal estimate. For current examples and assessment guidance, the HSE Fair Deal financial assessment page explains how income, assets, and the 3-year cap are assessed.
What Tax Relief Options Are Available for Homecare Costs?
Various tax relief options help reduce the financial burden of homecare, making it more affordable for families across Ireland.
These reliefs include claims on medical expenses, the Home Carer Tax Credit, and tax reliefs for employing a home carer. Each option has different rules, so families should check the relevant Revenue guidance before making a claim.
Eligibility for Tax Relief on Medical Expenses
Revenue allows tax relief on qualifying health expenses, including certain payments to doctors, nurses, and therapies prescribed by a medical practitioner. General homecare fees do not automatically qualify as medical expenses, so families should check Revenue guidance before making a claim.
Tax Relief for Employing a Home Carer
Families who directly employ a carer for a dependent relative, or pay a commercial agency for care, may be entitled to tax relief on the associated costs.
This homecare tax relief may be available at the highest rate of income tax paid, up to the qualifying annual limit. This provision helps offset the expenses of hiring a carer, making homecare more financially manageable.
How to Claim Homecare Tax Relief
Eligible claims can usually be made through Revenue's myAccount or ROS. Revenue may ask for Form HK1 and supporting invoices or receipts, so families should keep clear records of care costs.
Planning Home Adaptations and Accessibility Support
Home adaptations, such as ramps, stair lifts, or accessible bathrooms, can help make daily routines safer and more comfortable for an individual with a disability.
For families making these changes for a family member, our disability support service can help shape care around accessibility needs, routines, and independence at home.
Choosing Public, Private, or Voluntary Care
Selecting the right type of care is a significant decision. Knowing the differences between public, private, and voluntary care options helps families choose the best fit.
Public vs. private nursing home costs and services: Costs and services can vary between public and private nursing homes. Comfort Keepers provides homecare backed by quality assurance standards, offering flexibility and personalised support.
Voluntary care options: Voluntary care options may provide additional support through community resources. We help integrate these options into a comprehensive care plan.
Considerations for families choosing between care types: Each family's situation is unique. Comfort Keepers assists in evaluating all factors to make an informed decision that prioritises the person's well-being.
Securing Financial Support for Homecare Services
Planning for care costs can feel overwhelming for many families. Exploring available financial supports, such as tax relief on eligible expenses and the Home Carer Tax Credit, can make professional homecare more manageable.
These options may help reduce out-of-pocket expenses, allowing older persons and individuals with disabilities to receive compassionate support in familiar surroundings.
Ready to talk through your options? Our steps to starting care explain what to expect, or you can get in touch with us to discuss funding routes and arrange a personalised care plan.
