Up to 10,000 empty houses awaiting Fair Deal changes
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The Government has been accused of dragging its heels on measures that could immediately free up thousands of vacant homes.
Members of the Opposition have hit out at Minister of State for Older People, Mary Butler for failing to act on a promise to address the tax implications of people renting out their homes when they go into long-term care through the Fair Deal scheme. A review of how people availing of Fair Deal are taxed and assessed was due to be published by May, however, it is still ongoing with no deadline for completion.
Under the Fair Deal, nursing home residents can retain 60% of rental income if it relates to what was their principal residence, with the remaining 40% being assessed. As part of a deal hammered out with a number of Independent TDs ahead of a vote on the lifting of the eviction ban, Housing Minister Darragh O'Brien agreed to address what many say is a disincentive to rent out properties.
However, Ms Butler raised concerns around a reduction in the level of tax paid and suggested no change should be made until a full review is carried out.
"This policy change is currently under review, examining any unintended consequences and potential safeguarding issues, with the intention for amendment, if necessary," a spokesperson for Ms Butler said. "It should be noted that rental income accrued from property that is not a principal private residence will continue to be assessed at 80%.
Galway East TD, Sean Canney, said it is unacceptable that the Government is dragging its heels on a measure that had been accepted as part of a deal done with Independents. He disputed concerns that reducing the tax paid may result in elder abuse.
"One of the things that the minister keeps saying is that this would drive people out of their houses and will push people into nursing homes. Nobody is put into a nursing home until an independent clinical assessment is carried out by the HSE. There is no risk here."
He said up to 10,000 houses could be made available through this measure and it was "high time" the minister and the government honoured their commitment.
Social Democrats TD Róisín Shortall said the delay in addressing the issue makes "no sense" especially during a housing crisis.
"I think all politicians are really conscious of this because at election time you see the number of older people's homes that are lying vacant. It's an absolute scandal I think in the midst of a housing crisis.
"With a very small change to how the fair deal system works you could free up a huge number of houses. It just makes no sense at all for the government to be dragging its heels on this."
She added that the area of older care needs to be looked at in its totality. At the moment, she said, the system "very much channels people into nursing home care".
"That isn't necessarily the right model to be using. A lot of people, a lot of older people, their first preference is to stay at home, with support at home, that's understandable. We know they do better from a health perspective if they do that, and they live longer," she said.