Tom Murray, founder of Fair Deal Advice, is a leading Fair Deal Scheme advisory firm that works independently to support applicants with expert guidance. Tom is a Fellow of the Chartered Institute of Management Accountants (FCMA) and is drawing on over 15 years of specialist experience to tackle the misinformation still circulating Ireland's Nursing Home Support Scheme (NHSS) – commonly known as the Fair Deal scheme.

With more than 500 successfully guided applications since the scheme launched in 2009, Murray has seen the same misconceptions surface, time and again, at some of the most difficult moments in family life.

"Confusion continues to derail families — delaying applications, inflating fears, and in some cases, preventing people from accessing support they are fully entitled to," Tom Murray discussed in a recent appearance at a panel discussion.
“The 80% Contribution Will Leave Me With Nothing” Misconception

This concern is the most cited fear about fair deal advice and one of the scheme's most misunderstood calculations.

Under the Fair Deal Nursing Home Scheme, residents contribute 80% of their assessable weekly income towards their care costs. The confusion arises when families multiply this figure by four weeks and conclude that monthly contributions will exceed their entire monthly income.

The maths simply does not work that way.

"The 80% is applied to weekly income — not converted into a monthly rate," says Murray. "If your weekly assessable income is €500, you contribute €400 and retain €100 as a personal allowance. Full stop."

Crucially, the contribution under the Nursing Home Support Scheme is always capped at the actual cost of care. A resident will never be asked to pay more than the nursing home charges. The State funds the balance.

You Don't Always Have To Sell The Family Home To Pay For Care

“Never approach without proper planning, and understanding the Nursing home support scheme cost of care,” warned Murray

The Fair Deal scheme includes a provision called Ancillary State Support, commonly known as the Nursing Home Loan Scheme in Ireland. Under this arrangement, the asset-based contribution, calculated annually at 7.5% of the value of assets, including property, does not have to be paid during the resident's lifetime.

Instead, the HSE covers this portion of the cost on behalf of the resident. The accumulated total is registered as a charge against the property. It is collected by the Revenue Commissioners from the estate, and not until at least 18 months after the date of death.

Where a spouse or partner continues to live in the family home, repayment can be deferred even further.

"No one is required to sell their home to enter a nursing home under the Fair Deal," says Murray. "The Nursing Home Loan was designed precisely to prevent that outcome. Planning means families understand this before the crisis point arrives."

The 3-Year Cap Is A Minor Detail

“For many families, the 3-year cap is the single most financially significant provision in the scheme,” Tom Murray stated.

The 3-year cap limits the period during which a principal private residence can be assessed for the asset contribution.
Rather than paying 7.5% per annum indefinitely, residents contribute a maximum of 7.5% for three years on their primary home, with a total ceiling of 22.5% of the property's value, regardless of how long they reside in nursing home care.

The cap extends further still. Certain farming families and business owners who have an existing qualifying successor may also benefit from the 3-year cap on those assets. The implications for long-term nursing home support scheme cost of care can be substantial.

My Private Health Insurance Will Cover Nursing Home Costs"
“Yes, I did meet people who believed that, but let me assure you, it will not,” said Murray.

Private health insurers in Ireland do not fund long-term nursing home care. They may contribute briefly to short-term convalescence. Beyond that, coverage ceases.

This matters enormously in practice. Private hospitals will discharge patients requiring long-term care, as insurers will not fund delayed discharges.

If a Fair Deal application has not been submitted, let alone approved, the family must fund care privately. Average nursing home costs in Ireland exceed €1,000 per week. Without the Nursing Home Support Scheme in place, savings deplete fast.

Experts Advise for Fair Deal Scheme Applicants

Nowadays, the Fair Deal Scheme application is more nuanced than earlier. Delays are common. If you have missing paperwork, incomplete financial disclosures or capacity-related issues, the application can be more complex. Consider having an Enduring Power of Attorney in place for seniors with the risk of Alzheimer's or dementia.

The application may look manageable on paper; in practice, families often find it stressful and unique to their situation. Seek professional guidance early on to have a planned and informed application for a plausible long-term solution to get nursing home care for your loved one.