The Fair Deal Scheme vs. Private Nursing Home Care: Which Is Better?

When it comes to long-term care for elderly family members, one of the biggest decisions families face is whether to use the Fair Deal Scheme or opt for private nursing home care. Both options offer crucial support, but there are key differences in cost, flexibility, and how they affect your family’s financial situation. In this blog, we’ll compare the Fair Deal Scheme with private care to help you decide which option is best for you.

What is the Fair Deal Scheme?

The Fair Deal Scheme, also known as the Nursing Home Support Scheme, is a government initiative in Ireland designed to make nursing home care more accessible for those who need it. Under the Fair Deal Scheme, individuals contribute a percentage of their income and assets towards their nursing home costs, with the state covering the remaining costs. This helps ensure that those without the financial means to afford care can still receive the necessary support.

How Does the Fair Deal Scheme Work?

The Fair Deal Scheme involves a financial assessment of the applicant’s income, savings, and assets. The individual must contribute:

• 80% of their income (pensions, rental income, etc.)

• 7.5% of the value of their assets (including property)

The rest of the cost is covered by the state, making it a more affordable option for many families.

The Cost of Care Under the Fair Deal Scheme

The cost of care under the Fair Deal Scheme depends on the applicant’s financial situation. The state’s contribution makes nursing home care much more affordable compared to private care. However, the requirement to use part of your savings or assets to contribute towards care can be a significant consideration, especially if you have valuable property or savings.

Private Nursing Home Care

Private nursing homes, on the other hand, do not rely on government assistance. The individual or their family is responsible for paying the full cost of care, which can vary greatly depending on the facility and the level of care required. While private care provides more flexibility and often a broader choice of homes, it can be significantly more expensive, with some fees ranging from hundreds to thousands of pounds per week.

Pros of the Fair Deal Scheme

Government Support – The Fair Deal Scheme makes nursing home care more affordable, particularly for those with limited income or assets.

Cap on Family Home Contribution – The three-year cap on contributions from the family home helps protect a portion of the home’s value.

Affordable Care for Lower-Income Families – The scheme is designed to help those who can’t afford private care but still need long-term support.

Cons of the Fair Deal Scheme

Asset Contributions – The Fair Deal Scheme requires a contribution from your assets, which may impact inheritance.

Limited Choice – Only approved nursing homes are included in the scheme, which may limit your options for care facilities.

Approval Time – The process to get approved for the Fair Deal Scheme can take time, delaying access to necessary care.

Pros of Private Nursing Home Care

Greater Flexibility – Private nursing homes offer a wider range of options in terms of locations, services, and specialisation.

No Asset Assessment – Private nursing homes don’t require a financial assessment, meaning there are no contributions from your assets.

Personalised Care – Private facilities often provide more tailored care, with additional services and amenities that suit individual preferences.

Cons of Private Nursing Home Care

High Costs – Private nursing home care can be very expensive, with fees that families must pay in full.

No Government Support – Unlike the Fair Deal Scheme, private care does not benefit from state funding, making it unaffordable for many.

Potential for Financial Strain – Without the Fair Deal Scheme, families may need to sell assets to afford private care, impacting inheritance.

Which Option is Right for You?

Choosing between the Fair Deal Scheme and private nursing home care depends on your family’s financial situation and preferences. If your family is eligible for the Fair Deal Scheme, it offers an affordable way to access quality care, especially if you have limited income or assets. However, if you prefer more flexibility and can afford the higher costs, private nursing homes may offer the personalised services you need.

For families with substantial assets, it’s important to weigh the potential impact on inheritance when considering the Fair Deal Scheme. Seeking expert Fair Deal Scheme advice can help you make the best decision based on your unique circumstances.

Conclusion

Both the Fair Deal Scheme and private nursing home care have their advantages and drawbacks. The Fair Deal Scheme provides financial relief for those with limited resources, while private nursing homes offer more flexibility at a higher cost. Carefully considering your family’s needs, financial situation, and long-term goals will help you decide the best option for elderly care.

For expert Fair Deal Scheme advice and guidance on navigating the Nursing home support scheme cost of care, contact Fair Deal Advice today to help you make informed decisions about your loved one’s care.