Deferred Payments

1. Deferred Payments Care Act – Staff Conference – 10.11.2014

2. Introduction The Act places a duty on all local authorities to operate a deferred payment scheme and to offer deferred payments to people meeting the acceptance criteria for the scheme By taking out a deferred payment agreement (DPA), a person can ‘defer’ or delay paying the costs of their care home until a later date A deferral can last until death, however people may choose to use a deferred payment agreement as a ‘bridging loan’ to give them time and flexibility to sell their home when they choose to do so Payment is deferred and not ‘written off’. This must be stressed to the individual

3. Who is eligible for a deferred payment agreement? A deferred payment agreement (DPA) must be offered to anybody who has ‘adequate security’ and: • Whose needs are to be met by the provision of residential care • Who has less than the upper capital limit in assets excluding the value of their home • Whose home is not occupied by a spouse or dependent relative However some discretion may be exercised – local authorities may offer DPAs to others who don’t meet the criteria, including people in supported living accommodation Permission may be refused in certain circumstances e.g. where there is insufficient security

4. How much can be deferred?

5. Information and advice The local authority should tell people all about the DPA scheme and how it works, if they feel someone might benefit from having a DPA In particular the local authority should: • Consider potential issues around loss of capacity, and offer advice on options for deputyship, legal power of attorney and advocacy • Advise people that they will need to consider how they plan to use, maintain and insure their property • Keep people informed about the DPA as it continues and provide necessary information on termination

6. The agreement

7. Termination of the deferred payment agreement Sale of property /security Voluntary repayment Death