Changes to Fair Deal scheme welcomed

‘THIS MOVE WILL REMOVE A GREAT DEAL OF STRESS AND WORRY FROM THE AFFECTED FAMILIES’

THREE year’s after a report recommended adapting the Fair Deal nursing scheme to make it more inclusive to farming families and business owners the Government has announced it is to implement the changes.

The review, undertaken by the Department of Health and published in 2015, said consideration should be given to the capping of nursing home costs against the value of a farm or business that was being transferred to its owners children.

It deemed as “reasonable” a view expressed by the Irish Farmers Association (IFA) that the existing rules of the scheme placed a significant burden on farming families.

At the time the then Mayor of County Cork, Cllr John Paul O’Shea, welcomed the review saying he and other public representatives had repeated lobbied for the scheme to be amended to take in the particular circumstance of farmers and small businesses.

Under the existing scheme rules elderly people are eligible to receive funding from the HSE’s Nursing Homes Support (Fail Deal) Scheme, to help fund their long term care.

Applicants must contribute up to 80% of their assessable income and 7.5% of the value of the value of their assets per year, which in the case of property can be collected from their estate after they die.

Cllr O’Shea said the scheme actively discriminated against farmers and small business holders who have to pay a capital sum, based on a percentage of the value of their farm or business, against nursing home care.

He pointed out that individuals with family homes only pay the percentage charge for a period of three years, while farmers and business owners continue to be liable every year for the duration of their care.

The authors of the report in turn acknowledged the current rules created what they described as “real difficulties” in certain circumstances.

“At present both the income generated and the capital value are used as a basis for contributions. The resultant dilution of equity in the capital asset, particularly in circumstances where the three year cap does not apply, can cause real difficulties for farming and other families,” read the report.

“Further consideration will be given to the application of the asset-based contribution to family farms or other family businesses where the relevant asset generates a household’s income, and where the asset would in the normal course pass on to the next generation as a primary income source,” it said.

Cllr O’Shea this week welcomed the announcement by Jim Daly TD, Minister for State with Special Responsibility for Older People, that the long-sought after changes to the scheme are to be introduced.

Under the proposed new provisions the three-year cap will be extended to farms and businesses where a family successor continues to operate the farm or business for six years.

“The Government had committed to remove discrimination against family farms and small businesses under the scheme and I am pleased that it has now approved the proposed changes, “said Cllr O’Shea.

“This move will remove a great deal of stress and worry from the affected families and allow them to plan for the future. It will allow them to continue to run the family business without the fear of losing it”.

The Department of Health will now draft the general scheme of a Bill to provide for the necessary changes to the Nursing Homes Support Scheme Act 2009.

“I look forward to seeing progress on this matter in the Oireachtas during the autumn session,” concluded Councillor O’Shea.