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 dont
  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