The Care Act 2014 sets the rules for Deferred Payments which all Councils must follow; you must: 

• live permanently in, or plan to move permanently into, a care home AND the council MUST assess you and AGREE this is suitable for your needs.
• Have mental capacity to agree to a Deferred Payment or have a legally appointed agent willing to agree this. 
• Own (or have an interest in) a property which was your permanent/main home until you moved permanently into a care home which is not ‘disregarded’ (as defined by regulation) by the council e.g. your spouse/ partner is already living in the relevant property and needs to stay there. 
• Have capital (savings and investments not including your former home) of less than £23,250* Not have enough income to cover your care home fees There should: 
• Not be any other ‘beneficial interests’ on the property, e.g. outstanding mortgage/ equity release. 
• Be enough value in your home to cover the (estimated) amount that will need to be repaid to the council including any charges for being in the scheme and legal costs of selling your home. If you rent out your property, the council must agree to this, and you must be able to continue to meet your legal responsibilities as a landlord.   

You will need to complete an Application Form and provide the Council with relevant legal and financial documents. You must do this as soon as possible if you think you want to apply for the scheme. 

• If, within the first 12 weeks after moving into the care home, you apply, and we process and agree your Deferred Payment Agreement it can start from week 13 after your move. 
• If the application is not processed and agreed before week 13 after your move, you will need to fund your care costs yourself until we have processed it and made a decision.    
• The Council has the right to turn down a request, but the reason will be given to you in writing, and you can appeal against the decision, if you wish to do so.   

Before the Deferred Payment can start you must sign a legal agreement with the Council. It will include information about responsibilities and charges and how any changes to your situation should be managed. The Council will put a ‘first legal charge’ on your property by contacting the Land Registry, this gives it the right to have ‘first call’ on the proceeds of the sale of your property or to take your property if you don’t pay back the money you borrowed for your care. The legal charge is removed when your outstanding debt is repaid. (Please note this will take 7 – 10 days).  

The Council must consider what you can afford to contribute towards your care costs; this is decided by a Financial Assessment. You will be required to contribute from your income and if you have capital above £14,250* a ‘tariff income’ from your capital will be included in your financial assessment. The council must allow you to keep a weekly:

• Statutory Personal Allowance 
• Savings disregard (depending on your financial circumstances) 
• Disposable Income Allowance (DIA) up to a maximum of £144* for maintaining the property (e.g.  insurance, energy bills, and repairs.  When your weekly contribution amount has been calculated any shortfall between this amount and the weekly cost of the Care Home (agreed in a contract with the Council) is the amount that the Council will need to agree to pay.  

When your weekly contribution amount has been calculated any shortfall between this amount and the weekly cost of the Care Home (agreed in a contract with the Council) is the amount that the Council will need to agree to pay.  

If the weekly cost of your care home is more than the amount that the council agrees to pay for your weekly care there will need to be a ‘Top up agreement’ to pay the additional fee amount, this will not be included in the Deferred Payment Agreement. Please see our leaflet “Choice of accommodation - Top Ups.

In addition to your weekly contribution amount the council will charge you  

1. Set Up Fees - incurred in setting up and securing a typical agreement.  
2. Annual Fees – chargeable through the course of the agreement.   
3. Interest – on the amount owed, charged from the start of the agreement until the debt is settled. The interest rate is reviewed on 1 January and 1 July each year.   
4. Termination Fees - chargeable at the end of the agreement.   

You can end the Deferred Payment Agreement at any time (by repaying your debt if you sell your home or leave the care home). Otherwise, the agreement ends on your death and payment is due 90 days after death. The Council cannot cancel the agreement without your consent.  

Any money owing on the Deferred Payment Agreement must be repaid when the agreement ends. If you die, the executor/administrator of your estate is responsible for repaying the amount owing 90 days after the date of death or when the property is sold or (whichever is sooner).   

This information is not a full statement of the law. You are advised to get independent legal and financial advice including welfare benefits advice in order to understand how a Deferred Payment Agreement and the Council’s financial assessment and charging may affect you, details for these can be found by searching for "Advice and Information Services - Financial and Legal" in our Adult Social Care and Health Directory.  

For more information please see www.milton-keynes.gov.uk/financialassessments and our leaflets:  

Financial assessment and charging for care and support

Choice of accommodation - Top-Ups” 

Financial Assessment Team Milton Keynes Civic Offices 1 Saxon Gate East, Milton Keynes MK9 3EJ  

• Email financialassessments@milton-keynes.gov.uk    
• Telephone 01908 253337 (option 3)