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Deferred payment schemes for adult social care

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Deferred payment schemes for adult social care

 A Deferred Payment Agreement (DPA) helps pay your residential care costs if you can't pay in full because your capital is tied up in property or land. A legal charge is placed on the property to protect the council's interest.

The DPA can last until death. However, many people choose to use a deferred payment agreement as a ‘bridging loan’ to give them the time and flexibility to sell their home when they choose to.

Eligibility

You should be eligible if you:

  • have eligible needs which we decide should be met through a care home
  • own your home (unless your partner or certain others live there)
  • have savings and investments of less than or equal to £23,250 (not including the value of your home)

We can refuse an application if:

  • we can't secure a first legal change on your property
  • you do not have the mental capacity to agree, nor have someone properly authorised (for example, with legal power of attorney or a court appointed deputy) who can represent you
  • you are seeking a top-up and the amount does not seem sustainable for the duration, given the amount of equity in your property - if the cost of the placement is greater than what we will pay, this is a top-up
  • you do not accept our terms and conditions

Successful applications

You will be offered a loan using your home as security. We don't give you a fixed sum of money.

You pay a part of your weekly charge based on your financial assessment.

We pay an agreed part of your weekly care costs for as long as needed as your ‘deferred payment’. This is usually paid directly to the care home but can be paid to you.

The deferred payments build up as a debt which is cleared when the money tied up in your home is released. For many people, this will be done by selling their home, either immediately or later on.

You will receive the agreement in writing.

Apply

Certain criteria need to be met and we have discretion to decide when we will offer a DPA. All applications are considered on their individual merits and you will need to sign a contract with us agreeing to the loan conditions.

You should always seek independent financial or legal advice if you wish to enter a DPA.

When you have been assessed, you will need to complete a deferred payment application form.

Request an assessment

Last updated 15 November 2022