Managing your care costs if you own your own home
What is a Deferred Payment Agreement?
If you are a home owner and you need care in a care home or rented supported living, the value of your home will usually be taken into account when working out how much you need to pay towards the cost of your care. A deferred payment agreement is one way to pay.
With a deferred payment agreement the council will pay towards your care costs for as long as is necessary. It is a loan from Doncaster Council using your home as security. If you would like to read about the policy please click below.
- Deferred Payments Policy
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You will be charged interest and administration fees. You can read more about these in the link below.
- Deferred Payment Administration fees April 2019 to April 2020
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How do I know if I could be eligible?
To be eligible you must:
- Own a property that is counted in your financial assessment
- Have less than a certain amount not counting the value of your home (for example in 2019/20 this is £23,250 but it is reviewed every year)
- Need permanent care in a registered care home or a tenancy in supported living such as extra care
- Be able to understand and agree to a deferred payment agreement or have someone with the legal power to do this on your behalf
If you would like to be considered for deferred payment agreement but do not meet the conditions above it is still worth talking to your Financial Assessment Officer about it – all efforts will be made to look at individual circumstances.
How do I know if this is the right thing for me?
It is important to understand that if your financial assessment shows you are liable to pay your care costs the council will invoice you and expect to be paid. A deferred payment agreement is one way of doing this. Choosing a deferred payment agreement is an important decision. You should seek independent financial advice to find the right choice for you. There are a number of organisations who can offer support and advice including:
The Society of Later Life Advisers ensuring that consumers are better informed about the financial issues of later life
Telephone: 0845 303 2909
Money Advice Service
Free and impartial money advice
Telephone: 0300 500 5000
Helping you plan for later life
Telephone: 0800 169 6565
Topping up to choose the care provider I want
The council will usually pay a set amount for certain types of care but some care providers could charge more than this. If your choice of care provider is more expensive you may be able to use a deferred payment agreement to top up the difference.
Things to consider
- A deferred payment agreement can give you time to put other arrangements in place for example it can be a bridging arrangement until you can sell your house or a long-term arrangement covering the whole time you need care
- If you decide to make it a long-term arrangement it could give you peace of mind for the future
- Your property needs to be registered with the Land Registry to be eligible
- You will need a responsible person willing and able to look after your old home, including keeping it in good repair and properly insured
- The council does not give you a fixed sum of money upfront. The money is lent to you on an ongoing basis to pay care fees as they fall due. Interest is charged on the amount owed
- You repay the loan when you sell your house or when you die
Other things you might want to consider
- If other people have an interest in the property, all the owners will need sign up to the agreement so you should speak to them
- This might be a good time to make arrangements for someone to make decisions on your behalf if you are not able to do it for yourself in future
The person who visits to undertake your financial assessment will be able to speak to you in more detail about deferred payment agreements. This information is designed to let you know that they are available and some of the key things to think about.
You can also contact: The Financial Assessment Visiting Team
Telephone: 01302 735336