Deferred payment scheme

Using the value of your home towards the cost of residential or nursing home care.

1 What is a deferred payment agreement?

A deferred payment agreement (DPA) is a loan from the County Council against the value of your home to help you pay residential care home fees. This means that you don't have to sell your home immediately to release money to pay for your care if you don't want to.

Considering your options

A DPA may not suit you and your family and there are other options you may want to consider. These are explained in our booklet.

We strongly recommend that you take financial advice before you decide whether a DPA is for you. Our Carewise care funding scheme offers specialist financial advice, or you can get advice from other sources if you prefer.

2 How it works

We will usually only consider a DPA after you have been in residential care for 12 weeks and if your home is included in your financial assessment.

You will pay:

  • the contribution towards your care from your income and savings that we have assessed you can afford
  • an initial set-up fee of £546.30
  • a property evaluation charge of £275.83
  • an ongoing weekly charge of £7.89
  • annual compound interest on the loan.

More details are provided in our booklet.

We will pay the part of your weekly costs that you can’t afford - up to a maximum total amount - using the value of your home as a guarantee that we will get the money back.

You can choose to either:

  • sell your home and repay the loan at any time
  • keep your home, and the deferred payment (the fees) will be repaid out of your estate after your death.

You can also choose to pay back the debt in another way if you prefer.

3 Who can have a deferred payment

To be able to enter into a DPA you must:

  • be assessed by a social care worker as needing residential care
  • be living, or going to live, permanently in a registered residential care or nursing home
  • own, or partly own, your home
  • have savings and investments of less than £23,250 (not including the value of your home)
  • have the mental capacity to enter into a DPA, or have a legally-appointed person who is willing to do this for you.

We will also take account of other factors when deciding how much you can borrow; for example, where another person has a legal share in your home or some of the value is tied up in a mortgage or an equity-release scheme.

The value of your home will not normally be included in the financial assessment if your partner, a child under 18 or a relative who is over 60 or disabled still lives in your home.

4 Find out more

To find out more about DPAs speak to your social care worker or contact Adults' CarePoint.

You can also find more detail in our booklet:

For general information about paying for care or nursing home fees see Paying for residential care.

Last updated:
6 February 2020
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