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New Support Schemes for Nursing Homes

Two new support schemes that apply to nursing homes have been announced by government. Firstly, as part of the Government’s “cost of living” budget, the Temporary Business Energy Support Scheme (TBESS) aims to assist businesses experiencing an unprecedented increase, 50% or more, in their gas and electricity bills between the period from 1 September 2022 to 31 December 2022.

Secondly, a more recent €10 million Temporary Inflation Payment Scheme (TIPS) targeting private and voluntary nursing homes will be implemented by the Department of Health. The scheme will assist with energy and inflation costs. TIPS will run parallel to the Temporary Assistance Payment Scheme COVID-19 Outbreak Assistance and will see vouched year-on-year energy cost increases reimbursed up to 75%.

Nursing home operators may only avail of one of these two schemes for the same costs over the same period.

The key aspects of TBESS and TIPS are as follows:

Key Features



Administered by

Irish Revenue

The National Treatment Purchase Fund is touted by the Department of Health to be the scheme administrator

Who is eligible

Any businesses carrying on a trade or profession which includes nursing homes

Only private and voluntary nursing homes that have a ‘Fair Deal’ agreement with the National Treatment Purchase Fund

Operation of Scheme

1 September 2022 to 31 December 2022 with a possible extension to 28 February 2023

1 July 2022 to 31 December 2022

Will be kept under review and further funding of the supports will be looked at towards the end of the year

Applies to

Electricity and natural gas cost increases, for example September 2022 electricity and natural gas costs will be compared to September 2021 electricity and natural gas costs

Heating and electricity cost increases, for example, September 2022 energy costs will be compared to September 2021 energy costs

Reimbursement calculation

The business must meet the “energy cost threshold”. This threshold is calculated by comparing the VAT-exclusive unit price from their bill for electricity/gas for the claim period with the corresponding period in 2021. If the cost has increased by at least 50%, the business may be eligible to submit a claim and a reimbursement of up to 40% of the eligible cost up to a maximum of €10,000 per month may be paid.

We understand that Irish Revenue are building an online calculator to assist businesses in ascertaining whether the “energy cost threshold” is met, as calculating this threshold is otherwise complicated.

If vouched energy costs in 2022 have increased by up to €7,000 per month compared to the corresponding monthly period in 2021, the nursing home may be entitled to be reimbursed up to 75% of the increase to a maximum payment of €5,250 per month

Further conditions

The nursing home must be:

  • Tax compliant
  • Eligible for a tax clearance certificate throughout the claim period
  • An “eligible business” during the claim period and intending to be an eligible business following the end of the claim period, and
  • In compliance with Irish Revenue’s requirements regarding registering and submitting claims via ROS

Claims should be made within 4 months of the end of the claim period to which a particular electricity or gas bill relates

Qualifying nursing homes will be required to evidence the relevant cost increases via bills, invoices or other relevant documentation.

Further details and conditions of TIPS are to be announced by the Department of Health. However, we would expect that some of these additional conditions would be similar to those set out in TBESS, ie the nursing home must be tax compliant.

Monthly cap

A maximum reimbursement of €10,000 per month per trade, increased to a maximum of €30,000 per month if the business operates across multiple locations

A maximum reimbursement of €5,250 per month per nursing home

Next steps

TIP is open for claims while TBESS, which awaits EU state aid approval, is expected to open for claims by the end of November 2022. These new measures will be welcomed by the nursing home sector who have faced unprecedented energy cost increases in 2022. The Department of Health says that it has further sectoral reforms in the pipeline, including commitments to explore a new dedicated funding stream under the Nursing Home Support Scheme to reflect the different needs for dementia-specific nursing homes as well as greater public sector involvement in the residential care of older people in Ireland.

For more information about the support schemes available to nursing homes, contact a member of our Corporate or Tax teams.

The content of this article is provided for information purposes only and does not constitute legal or other advice.

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