Deferred Payment Agreements for care home costs

A 'Deferred Payment Agreement' is an arrangement 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.

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

Last Updated: 28 July 2021