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Deferred payment schemes for adult social care

A Deferred Payment Agreement (DPA) allows you to use the value of your home to help fund residential care costs without having to sell your property during your lifetime (or until you choose to). The council effectively lends you the money and recovers it later from the sale of your home.

How it works

  1. Agree a DPA - you enter into a legal agreement with the council, your home is used as security for the loan
  2. Council pays fees - the council pays the care home on your behalf, the debt accrues over time
  3. Interest added - a compound interest rate (set by the government) is applied to the outstanding amount
  4. Repayment - you repay the full amount including interest when you sell your home, move to a cheaper home or from your estate after death

Eligibility

You may be eligible for a Deferred Payment Agreement if:

  • you are in (or about to enter) a care home permanently
  • you own property or land in England
  • your property is not already excluded from the financial assessment (e.g. because a partner lives there)
  • your capital (excluding property) is below £23,250

Charges and interest

The council charges a compound interest rate on the amount deferred. The current rate is set by the government and published annually. There may also be a one-off set-up fee and an annual administration charge, we will provide you with a full breakdown before you sign the agreement.

What if I want to sell my home

You can sell your home at any time. When the property is sold, the full deferred amount (including interest and charges) must be repaid to the council. Any remaining proceeds belong to you or your estate.

We will work with you or your solicitor to ensure the repayment is handled correctly at the point of sale.

Equity limit

We will continue to defer payments until the total debt reaches a set proportion of your property's value (the equity limit). This is to protect a residual amount of equity. We will notify you when you approach this limit so you can consider your options.

Find out more

Contact our financial assessment team on 0300 126 3000 to discuss whether a Deferred Payment Agreement is right for you.

Last updated 14 August 2026