What is a Deferred Payment Arrangement?

A Deferred Payment Arrangement is an agreement with the council that enables people who own their own home, but have little in the way of savings, to use the value of their home to pay for care home costs.

To be eligible you must meet certain criteria, broadly they are that:

a)  you are "ordinarily resident" in the local authority area and the local authority has agreed it will or would meet your care needs under section 19 of the Care Act if asked to do so *
b)  you have needs which the local authority considers should be met through a care home placement *
c)  you have less than, or equal to £23,250 in assets excluding the value of your main or only home *
d)  your home is not "disregarded"  based on the regulations on charging for care and support *
*These statements are based on the statutory guidance but are not an exact statement of the law

If you are eligible;

• The council will help to pay your care home bills on your behalf.
• You can delay repayment of these charges until you choose to sell your home, or until after your death.
• The council will charge interest on the amount owed, and there is also a fee for setting this arrangement up. These have been set to cover the council’s costs and not to make a profit.

This is described in more detail in our Deferred Payment Arrangements section.

More information and advice

For more information contact our Access Team. If you are already speaking with one of our services, please contact that team.

We also recommended that you seek  Independent Financial, Welfare Benefits and Legal Advice before making any major decisions.