Fair Deal Scheme Explained (2026): Costs, the 3-Year Cap & How to Apply

The Fair Deal Scheme — officially the Nursing Home Support Scheme (NHSS) — helps people in Ireland meet the cost of long-term residential care. The State and the resident share the cost based on a financial assessment, so you contribute what you can afford and the HSE pays the balance. This guide explains, in plain English, how it works in 2026: what you pay, the important 3-year cap on your home, the rules for farms and businesses, and how to apply.

How the Fair Deal Scheme works

There are two assessments. First, a care needs assessment confirms that long-term nursing home care is the right option. Second, a financial assessment works out your weekly contribution. Once approved, you can use Fair Deal in any approved public, private or voluntary nursing home.

How much do you pay?

• Income: 80% of your assessable income (for example, pensions).
• Assets: 7.5% per year of the value of your assets. The first €36,000 of assets is disregarded (€72,000 for a couple).

For a couple, the assessment is based on half of your combined income and assets.

The 3-year cap on your home

This is the protection most families ask about. The value of your principal private residence is only included for a maximum of three years. At 7.5% per year, that is a maximum of 22.5% of your home’s value — or 11.25% where a spouse or partner continues to live there. After three years, no further contribution is charged on the home, even if you remain in care longer. Since 1 February 2024, rental income from your home is also no longer counted if you rent it out while in care. A 3-year cap review can confirm exactly how the cap applies to you.

Farms and family businesses

Under the Nursing Homes Support Scheme (Amendment) Act 2021, the same 3-year cap can apply to a family farm or business — but only if strict conditions are met. You must appoint a family successor who commits to running it for at least six years, and the asset must have been actively worked for at least three of the previous five years. The relief is valuable but easy to get wrong, so a farm and business relief review is worthwhile before you apply.

Deferring the cost: the Nursing Home Loan

You don’t have to sell your home or pay the property-based contribution upfront. Through Ancillary State Support — the Nursing Home Loan — the contribution based on your home can be deferred and repaid later from your estate, secured as a charge against the property. Whether this suits you depends on your family’s plans, so it is worth taking advice on the Nursing Home Loan first.

How to apply

You apply to the HSE using the Fair Deal application form, supported by the care-needs and financial assessments and documents (income, assets, and any statutory declarations for farm/business relief). Getting it right first time avoids delays — our Fair Deal application support handles this on a fixed fee.

Frequently asked questions

Will I lose my home under Fair Deal? No. The home is assessed for three years only (a maximum of 22.5% of its value), and the Nursing Home Loan lets you defer even that.

Is the home protected for my spouse? Where a spouse or partner remains living there, the cap is 11.25% over three years.

Can a farm be protected too? Yes, if you meet the family-successor and active-operation conditions under the 2021 Act.

This article is general information about the Fair Deal Scheme in Ireland and is not legal advice. Figures and rules can change — for advice on your own circumstances, explore our Fair Deal & Elderly Care services or book a consultation with an Irish solicitor.