Deferred payment agreements Care Act 2014

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 2

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 3

How much can be deferred? 4

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 5

The agreement 6

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