Deferred payment agreements
A deferred payment agreement is an arrangement with the council that will enable some people to use the value of their homes to pay for their care costs.
Choosing a deferred payment agreement
Deferred payment agreements are available for people with care and support needs so that they should not have to sell their homes in their lifetime to pay for their care in a care home. Please read the attached leaflet Helping you pay for social care - Deferred payment agreements for more information. You can also see this information in our Easy Read leaflet about Deferred payments. We will charge a small amount of interest on the amount owed to us, and there will also be a fee for setting this arrangement up. These are set to cover the council's costs and not to make a profit.
'Care and support' is the term we use to describe the help some adults need to live as well as possible with any illness or disability they may have. It can include help with things like washing, dressing, eating, getting out and about and keeping in touch with friends or family.
If you are eligible, we will help to pay your care home bills on your behalf. You can delay repaying us until you choose to sell your home, or until after your death.
You will still need to make a contribution from your income to meet some of the cost of your care but you will be allowed to keep £144 per week towards the upkeep of your property. This is called the Disposable Income Allowance. You can choose to keep less than this per week if you can afford to and we will discuss this with you when you make your application.
Who can apply for a deferred payment?
You should be eligible for a deferred payment agreement if:
- You have been assessed by the council as needing permanent care in a residential care or nursing home
- You own, or part own a property which is registered with the Land Registry (unless your partner or certain others live there)
- You have savings of less than £23,250 (not including the value of your home or pension pot)
You must have mental capacity to agree to a deferred payment agreement or have a legally appointed agent willing to agree this
Considering your options
Deferred payment agreements will suit some people's circumstances better than others. If you are still living in your own home, you will not need a deferred payment agreement.
A deferred payment agreement is only one way to pay for care.
- You may choose to rent out your property, which could give you enough income to cover the full cost of your care. There are advantages to this as you will not accrue a debt, be liable for interest and administrative charges and your property will be occupied. Your tenant will be paying utilities and Council Tax which will reduce your outgoings
- There are also various equity release products which may be suitable for your personal circumstances
- You may also choose to pay the full cost of your care from your available income and savings or assets; or a family member may choose to pay some or all of this for you. See third party contributions or top-ups
You should take independent financial and legal advice to help you decide which course of action will be financially better for you.
Where you can find independent advice
Visit our independent financial advice about paying for care page for more information on websites offering independent advice.
Apply for deferred payment agreements
If you wish to apply for the scheme, contact the welfare and financial assessments team on 01432 383444 or email firstname.lastname@example.org. They will arrange for someone to send you an application form and go through the application process with you.