Fair Deal 2026 — State pays nursing home cost after your personal contribution
Fair Deal Scheme Ireland 2026
Nursing home care in Ireland can cost €800–€1,500/week. The Fair Deal Scheme (Nursing Homes Support Scheme) means you pay a contribution based on your income and assets — and the State covers the rest. You do not have to sell your home to enter care immediately.
Fair Deal — At a glance
- Income contribution
- 80% of assessable income
- Asset contribution
- 7.5% of assets per year
- Home (PPR) cap
- 3 years max (22.5% of value)
- State pays
- Balance of approved nursing home cost
- Apply
- HSE Nursing Homes Support Office — allows 8–10 weeks
How the Fair Deal contribution is calculated
Your personal contribution is made up of two parts: an income element and an asset element.
| Element | Rate | What is included |
|---|---|---|
| Income | 80% per year | Pension, social welfare payments, rental income, employment income |
| Assets (excluding home) | 7.5% per year | Savings, investments, second properties, land |
| Principal Private Residence (home) | 7.5% per year — capped at 3 years | The family home — maximum contribution is 22.5% of value |
Worked example — calculating your contribution
Example: Mary, retired teacher, entering nursing home
| Item | Amount | Calculation | Annual contribution |
|---|---|---|---|
| State Pension (income) | €299.30/week = €15,564/year | 80% of income | €12,451/year |
| Home (PPR) value | €280,000 | 7.5% per year × 3 years cap | €21,000/year (max 3 yrs) |
| Savings | €40,000 | 7.5% per year | €3,000/year |
| Total personal contribution | €36,451/year (~€701/week) | ||
If the approved nursing home costs €1,200/week, Mary pays €701/week and the State pays the remaining €499/week. After 3 years, the home contribution drops out and Mary pays only €294/week.
Your home — the 3-year cap in detail
The principal private residence (the home where you ordinarily live) is treated differently from other assets. Your contribution from the home value is capped at 3 years — a maximum of 22.5% of the home's assessed value.
You do not have to sell the home. If you cannot pay the 7.5%/year from cash, the HSE can lend you the money via the Nursing Home Loan — repaid from your estate after your death or after care ends.
| Home value | Annual contribution (7.5%) | Maximum total (3 years) |
|---|---|---|
| €200,000 | €15,000/year | €45,000 |
| €300,000 | €22,500/year | €67,500 |
| €400,000 | €30,000/year | €90,000 |
| €500,000 | €37,500/year | €112,500 |
The Nursing Home Loan
If you cannot afford the asset contribution, you can apply for an ancillary State support loan (the Nursing Home Loan). The HSE pays your asset-based contribution on your behalf. This is not a gift — it is recovered from your estate after:
- Your death (from proceeds of estate, including sale of home)
- Voluntary repayment at any time while alive
- Sale or transfer of the asset during your lifetime
The loan accrues no interest for the first 3 years. After 3 years, a small interest charge (set by the Minister annually) applies.
Approved nursing homes
Fair Deal applies to both HSE public nursing homes and private/voluntary nursing homes that are HIQA registered and have a contract with the HSE. The nursing home must agree to accept the Fair Deal rate for your category of care.
How to apply
- Care Needs Assessment
Request a Care Needs Assessment from the HSE. A nurse or social worker will assess whether you genuinely need long-term nursing home care (not short-term or respite care).
- Financial Assessment
Submit a completed financial statement to the HSE Nursing Homes Support Office. Declare all income and assets. A HSE officer reviews and calculates your personal contribution.
- Choose your nursing home
Select an approved nursing home from the HSE list. Check availability and confirm the home accepts Fair Deal residents for your care category.
- State pays the balance
Once approved, the HSE pays the balance of the nursing home fee directly to the nursing home. You (or your family) pay your assessed weekly contribution.
Frequently asked questions
Does Fair Deal cover all nursing home costs?
The State pays the balance after your personal contribution. The nursing home must be HIQA-registered and have a HSE contract. Some premium private nursing homes charge above the Fair Deal rate — you pay the top-up privately.
Can a spouse stay in the family home?
Yes. If a spouse/civil partner or dependent child continues to live in the family home, a 3-year residency period applies but the home contribution is reduced further. The HSE assesses the specific circumstances.
Is there a waiting list for Fair Deal approval?
Processing usually takes 8–10 weeks from receipt of a complete application. Some applications take longer if financial documents are missing. Apply as early as possible.
Does Fair Deal cover respite or short-stay care?
No. Fair Deal covers long-term nursing home care only. Short-term (respite) stays are funded separately and do not come under Fair Deal.
What happens to my pension under Fair Deal?
80% of your pension/income goes toward your personal contribution. You retain 20% of your income for personal spending money while in nursing home care.
Can non-Irish nationals use Fair Deal?
Yes, if you are legally resident in Ireland and ordinarily resident here. Habitual residence is assessed as part of the application.
- You do not have to sell your home immediately — the home contribution is deferred via the Nursing Home Loan and collected after your death.
- The 3-year cap means a maximum of 22.5% of the home value — not the full value — is ever taken from the estate.
- Fair Deal only covers nursing home (long-term residential) care, not home care packages.
- The 20% of income you keep is intended as personal spending money while in care — it is not taxed additionally under Fair Deal.
- Fair Deal approval takes 8–10 weeks — plan ahead and do not leave the application until a crisis point.
Related guides
This page was reviewed against official Irish government guidance and updated to reflect 2026 Fair Deal Scheme rules and contribution rates.