The Deferred Payment Agreement Scheme allows you to use your home as security against a loan to pay towards care home costs.
It doesn’t work in the same way as a conventional loan – instead of loaning a fixed sum of money, the council pays the care costs on your behalf and allows the agreed care costs to accrue (with interest) under a legal Deferred Payment Agreement (secured against your property). This loan must be repaid in full (plus interest and administration costs) when your property is sold or from your estate.
If your care and support assessment shows your ongoing needs are best met in a care home, and your savings and investments (other than your home) are less than £23,250 you may be able to apply for a Deferred Payment Agreement. There are other terms that must be met which are detailed in our Deferred Payment Agreement Scheme factsheet.
There will be charges for the administration of setting up and managing the Deferred Payment Agreement – see our charges for deferred payment and interim funding agreements. We will also charge interest on the deferred payments. All costs can be added to your deferred payment and repaid at the end of your agreement.