What does Universal Deferred Payment Agreement mean to me?
From April 2015 deferred payment agreements will be available across the whole country. This means that people should not have to sell their homes to pay for residential care in their lifetime.
Wakefield already had a Deferred Payment Agreement scheme, but this has been expanded to meet the Care Act requirements.
A deferred payment agreement is an arrangement with us that will enable some people to use the value of their homes to fund residential care home costs. If you meet the conditions, you are likely to contribute to some of the fees from your income.
For example, pension and we will pay any remaining residential care home costs on your behalf until you are able to repay these amounts back to us.
You can delay repaying us until you choose to sell your home, or until after your death.
Deferred payment agreements will suit some people’s circumstances better than others. The Care Act allows councils to charge interest on the amount owed to them, and to charge a fee for setting this arrangement up.
In a nutshell:
If you own a property and you need to go into residential care, you can put off paying for care until after you die;
- we will pay towards the care home bills and will get our money back when your home is sold
- any money left over once the debt has been paid will return to your financial estate.
- we will charge a low rate of interest (as set by the Government)
- you can choose to sell your home and pay off your debt early if you wish. We will contact you about your Deferred Payment Agreement regularly, and will discuss with you whether your property is worth enough to cover your debt.
If you have a lot of savings and investments, your council may not offer the scheme to you until you are at risk of having to sell your home (which will be when your savings drop below £23,250).
Who do I contact for an assessment?
A deferred payment agreement is only one way to pay for care. To find out about more options available, you should speak to an independent financial adviser or seek advice from an independent organisation such as the
Money Advice Service.
If you require further assistance or support then please contact Social Care Direct using the information to the right of this page.
Independent advice services
- Deferred Payments Agreement leaflet