Nursing Home vs Homecare in Ireland:What Irish Families Need to Know (Especially About the Finances)
When the time comes to arrange ongoing care for an elderly parent or loved one, Irish families face one of the most important (and often most overwhelming) decisions of their lives. Should they look into a nursing home, or explore the option of care at home?
The good news is that with the right information, this decision becomes much clearer. In this article, Royal Homecare breaks down both options honestly, with a particular focus on the financial realities that families face in the Republic of Ireland today.
Understanding Your Two Main Options
1. Nursing Home Care
A nursing home (also called a residential care facility) provides full-time, round-the-clock care within a dedicated facility. Residents move in permanently and receive meals, personal care, medical supervision, and social activities.
Nursing homes are typically suited to individuals who:
• Require 24-hour medical supervision
• Have complex or advanced care needs
• Can no longer safely live at home, even with support
• Have conditions such as severe dementia, Parkinson’s, or post-stroke complications requiring constant oversight
2. Home Care (Private Care)
Home care allows your loved one to remain in their own home, supported by a professional carer who visits or lives in the family home. This is the service that Royal Homecare Ireland specialises in: matching families with qualified, vetted carers across the Republic of Ireland.
Home care is typically suited to individuals who:
• Wish to maintain their independence and familiar surroundings
• Need support with daily tasks (bathing, dressing, meals, medication)
• Have mild to moderate care needs
• Are living with early-to-mid stage dementia or mobility challenges
• Have a family network who can supplement professional care
“Research consistently shows that people recover better, maintain dignity longer, and report higher quality of life when they receive care in their own home rather than in a residential facility.”
The Financial Reality: What Does Each Option Cost?
This is often the most pressing question for Irish families. The numbers can be eye-opening, and understanding them early allows you to plan effectively.
Nursing Home Costs in Ireland
Nursing home fees in Ireland are among the highest in Europe. Based on current data:
• Average weekly nursing home fee: approximately €1,564 per week
• Fair Deal negotiated rates: typically €800 to €1,800 per week, depending on location and facility
• Annual cost estimate: €40,000 to €93,000+ per year, before additional charges
It is important to note that many nursing homes charge supplementary fees on top of the core rate, covering items such as:
• Entertainment and activities (€25–€300/week depending on the facility)
• Hairdressing, physiotherapy, and therapies not covered by medical card
• Other lifestyle extras
These extras can add 25–30% to the weekly cost. Always ask any nursing home for a full breakdown of charges before committing.
The Fair Deal Scheme (Nursing Homes Support Scheme)
The Irish Government’s Fair Deal Scheme was introduced to help families meet the cost of nursing home care. Under the scheme, the State covers a substantial portion of costs after a financial assessment. However, there are significant implications families should understand:
How it works:
• You pay 80% of assessable income (e.g. pension, rental income) toward care costs
• You also pay 7.5% of the value of all assets per year, including your home
• A “3-year cap” applies to your principal private residence, meaning a maximum of 22.5% of your home’s value over 3 years
• The HSE pays the balance of the nursing home fee above your contribution
An example:
A single person with a weekly income of €240.30, no savings, and a home valued at €200,000 would pay approximately €428.78 per week. For a nursing home charging €1,000 per week, the HSE covers the remaining €571 per week. This sounds helpful, but the 7.5% annual charge on the family home is a significant financial consideration many families do not anticipate.
Important: Unlike nursing home care, there is currently no statutory entitlement to HSE Home Support in Ireland. Home support is a discretionary service allocated based on need and available resources.
Home Care Costs in Ireland
Home care offers considerably more financial flexibility. Costs vary depending on the level of care needed and whether you opt for hourly visits or live-in care:
• Hourly rates: typically €20–€30 per hour for a private carer
• Live-in care: approximately €1,200–€1,500 per week for comprehensive live-in support
• Part-time support (e.g. 2 hours/day, 5 days/week): approximately €200–€300 per week
Crucially, your family home is not assessed or placed at risk when arranging home care. You are not contributing a percentage of your property value each year. This represents a very significant financial difference compared to the Fair Deal Scheme.
State Support Available for Home Care
While Fair Deal is the main funding mechanism for nursing homes, several supports exist for home care:
HSE Home Support Service
The HSE funds home support hours for qualifying individuals aged 65 and over. This is a free service — income and assets are not assessed. In 2024, the HSE delivered over 25.5 million home support hours nationally. However, demand far outstrips supply, and waiting lists exist in many areas.
Consumer Directed Home Support (CDHS)
An evolving option that provides approved funding directly to the individual, allowing them to choose and manage their own approved carer, offering much greater flexibility in scheduling and care delivery.
Carer’s Benefit and Carer’s Allowance
If a family member gives up work to provide care, they may be entitled to Carer’s Benefit (a PRSI-based payment) or Carer’s Allowance (means-tested). A Respite Care Grant is also available annually.
Tax Relief
Families paying privately for home nursing care (through a qualified nurse arranged on the advice of a doctor) can claim tax relief. Nursing home fees also qualify for relief at the marginal income tax rate — up to 40% for higher-rate taxpayers. Always speak to a tax advisor to maximise your entitlements.
Side-by-Side Comparison
The table below summarises the key differences between nursing home care and home care in Ireland:
Beyond the Finances: Quality of Life
Money matters but so does wellbeing. Research and lived experience consistently show that people who receive care at home tend to:
• Maintain a stronger sense of identity and independence
• Experience better emotional and mental health outcomes
• Benefit from one-to-one, personalised attention
• Stay connected to family, friends, and familiar routines
• Have better outcomes in cases of dementia and cognitive decline
In a nursing home, even the very best facilities care for many residents simultaneously. Staff, no matter how dedicated, cannot replicate the personalised attention of a carer whose sole focus is on one individual.
This is especially true for those living with dementia. Familiar surroundings (their own home, their own garden, their own chair) provide a level of comfort and grounding that a care facility cannot offer.
How Royal Homecare Ireland Can Help
Royal Homecare Ireland is a specialist carer recruitment agency serving families across the Republic of Ireland. We understand that finding the right carer is one of the most important decisions a family can make, and we are here to make that process straightforward, trustworthy, and stress-free.
We source, vet, and match qualified, experienced carers to families who wish to support their loved ones at home. Whether you need a live-in carer, part-time support, or specialist dementia care, we can find the right person for your family.
Why families choose Royal Homecare Ireland:
• All carers are fully vetted, Garda checked, and reference screened
• We specialise in matching the right carer to your family’s specific needs
• We support families across the Republic of Ireland
• We provide guidance on accessing HSE home support and available financial assistance
• We believe care at home is almost always the better option, not only for your loved one but also for your family's finances
Ready to explore home care? Contact Royal Homecare Ireland today for a no-obligation conversation about your family’s needs. We’re here to help.
Sources & Further Reading
The following official sources were used in preparing this article. We encourage families to explore these resources for the most current information:
Fair Deal Scheme (Nursing Homes Support Scheme)
• Citizens Information – Fair Deal Scheme: https://www.citizensinformation.ie/en/health/health-services/health-services-for-older-people/fair-deal-scheme/
• HSE – About the Fair Deal Scheme: https://www2.hse.ie/services/schemes-allowances/fair-deal-scheme/about/
• HSE – Fair Deal Financial Assessment: https://www2.hse.ie/services/schemes-allowances/fair-deal-scheme/financial-assessment/
• Gov.ie – Fair Deal Scheme Overview: https://www.gov.ie/en/service/0d6b5-fair-deal-scheme/
• Revenue.ie – Nursing Home (Fair Deal) Loan: https://www.revenue.ie/en/life-events-and-personal-circumstances/nursing-homes-fair-deal-loan/index.aspx
HSE Home Support Service
• HSE – Home Support Services: https://www.hse.ie/eng/home-support-services/
• HSE – How to Apply for Home Support: https://www.hse.ie/eng/home-support-services/apply-for-home-supports-services/
• Citizens Information – Home Support Service: https://www.citizensinformation.ie/en/health/health-services/health-services-for-older-people/home-support-service/
• Citizens Information – Health Services for Older People: https://www.citizensinformation.ie/en/health/health-services/health-services-for-older-people/
Carer’s Payments & Supports
• Citizens Information – Carer’s Allowance: https://www.citizensinformation.ie/en/social-welfare/carers/carers-allowance/
• Citizens Information – Carer’s Benefit: https://www.citizensinformation.ie/en/social-welfare/carers/carers-benefit/
• Citizens Information – Carer’s Support Grant: https://www.citizensinformation.ie/en/social-welfare/carers/carers-support-grant/
• Gov.ie – Carer’s Allowance: https://www.gov.ie/en/department-of-social-protection/services/carers-allowance/
Nursing Home Regulation & Quality
• HIQA – Register of Nursing Homes & Inspection Reports: https://www.hiqa.ie
• HSE – Older People Services: https://www.hse.ie/eng/services/list/4/olderpeople/
Disclaimer: The financial figures in this article are based on publicly available data and are provided for general guidance only. Individual circumstances vary. Families should seek independent legal and financial advice before making decisions about long-term care funding, the Fair Deal Scheme, or tax relief claims.