Paying for care
Deferred Payment Agreements
Deferred Payment Agreements are only available for people receiving care and support in a residential or nursing care home or, at our discretion, if you are in Supported Living Accommodation.
You may be thinking about applying for a Deferred Payment Agreement to help you pay for the cost of your care. Before you apply we will give you plenty of information and advice so that you can make a fully-informed decision about whether a Deferred Payment Agreement is the best option for you and fully understand what you are signing up to.
We also recommend getting independent financial advice and information before entering into a Deferred Payment Agreement, as there may be other ways to pay for your care.
What is a Deferred Payment Agreement?
A Deferred Payment Agreement gives you with flexibility as to how and when you pay for your care, and means you will not be forced to sell your home during your lifetime. to pay for your care.
It is a legally binding agreement with full terms and conditions, which allows you to defer or delay paying some of the costs of your care until a later date. The costs deferred must be repaid in full in the future. We secure the amount being deferred by placing a legal charge against your property.
Who can apply for a Deferred Payment Agreement?
We will offer you a Deferred Payment Agreement if you:
- have your care needs met in a residential or nursing care home
- do not have savings and investments over the upper capital limit, not including the value of the house you live in
have the value of your home included in your financial assessment
- own your home, and there is enough equity in the value of that home for the Deferred Payment Agreement to last as long as needed.
How can I apply for a Deferred Payment Agreement?
During your financial assessment we will talk about whether a Deferred Payment Agreement may be a suitable way of paying for your care. Our Charging for Care Team will help you with the application form and, if your agreement is approved, we aim to have the agreement finalised and in place within 12 weeks of you moving into the care home.
Can my application be refused?
We may refuse your application when:
- we are unable to secure a legal charge on your property
- you don’t own your home, or there is not enough equity in the value of that home for the Deferred Payment Agreement to last as long as needed
- your property can’t be insured
- you do not supply enough information to process your application
- you do not agree to the terms and conditions of the agreement.
How much can be deferred?
The minimum amount you can defer each week will be the difference between your assessed weekly contribution and the cost of your care. We will discuss and agree with you the actual amount you want deferred as part of your financial assessment.
There is a limit on the total amount you can defer. This depends on the value of your property, less any existing debt to be paid off (for example your mortgage) and standard deductions we have to make by law.
What will a Deferred Payment Agreement cost?
There are fees and charges linked to Deferred Payment Agreements.
You will be charged:
- a fee for setting up a Deferred Payment Agreement
- interest on any amount you are deferring
- administration fees at specific times during the course of the agreement, for example when we review your agreement or provide you with additional statements.
You can choose to pay the fees and interest when they are charged, or you can add them to the amount being deferred. Any charges made only reflect the actual costs incurred by us to provide the scheme.
You can find the current charges and interest rates on our fees and charges page.
Is the Deferred Payment Agreement reviewed?
We will review your Deferred Payment Agreement to make sure it remains the best option for paying for your care.
We will send you a statement twice a year showing:
- the total amount you have deferred to date
- interest and administration charges accrued
- how much equity value remains in your property
- a forecast of how quickly that equity will be used up based on the current cost of your care.
You may also request an additional statement at any time during the year, but you will be charged for these.
When does a Deferred Payment Agreement end?
Deferred Payment Agreements come to an end when:
- the property has been sold and the amount owed has been repaid in full
- you have died and the amount owed is repaid by your estate
- you, or someone on your behalf, repays the amount owed in full
- you no longer need care and support in a residential or nursing home
- the equity value of your property has been reached and you become eligible for local authority funding
- you have broken the Terms and Conditions of the agreement.
Where can I get more information?
You can read our Deferred Payment Agreements policy.
You can also contact the Charging for Care Team for information.
Charging for Care Services Team, Devon County Council
Room G85, County Hall
Topsham Road, Exeter
Phone: 01392 384391
You may want to print this information off so you can refer to it whenever you need to.