Fair Deal - is it a double hit by the HSE

[PWR]

As I understand it now, having sought clarification from two different HSE Fair Deal offices, the scheme charges twice, as follows:

1. 7.5% of the value of the house a year for 3 years, or 22% upfront.
2. 7.5% of the persons cash balance (after a 36K allowance) thereafter per annum on an ongoing basis, but this is on a reducing balance as their cash is wound down.

Additionally, they pay 80% of ongoing income (i.e. any pensions).

Can anyone who recently completed an application verify that this is the case?

Thanks,

PWR

 

[twofor1]

I don’t think it’s correct to say the scheme charges twice, more accurate I think would be there are two elements taken into account in assessing your contribution, income and assets.

Regarding the house, there is no 22.5% upfront payment. The 7.5% of the value of the house is paid monthly for the first three years, thereafter the state pay this part of your contribution.

If you do not have the funds to pay this element of your contribution, then you can opt for the Nursing Home Loan, when the house is eventually sold, up to a maximum of 22.5% would have to be repaid.

Otherwise your understanding is correct.