Deferred payment scheme
The deferred payment scheme is an arrangement with the council that enables people to use the value of property they own to fund care home costs.
If you are eligible and chose to take up the deferred payment scheme, you will enter into a legal agreement where the council will assist with paying the care fees on your behalf on a loan basis. You will pay what you can afford from your weekly income and we will pay the difference in costs for you. The loan will be secured by a charge on the property with the Land Registry. Repayment of the loan is not required until you sell your home or until after your death.
Who is eligible?
You should be eligible for the deferred payment scheme if you:
- Are receiving care in a care home (or you are going to move into one soon).
- Own, or have part ownership of property/properties (unless your partner or certain others live there).
- Have savings and investments of less than £23,250 (not including the value of your home).
How do I find out if I am eligible?
When you decide to move into residential care you will be asked to help us carry out an assessment of your finances.
If you are eligible for a deferred payment we will offer it to you when this assessment has been completed.
How much will it cost?
There are some fees involved in the deferred payment scheme.
We charge:
- A setup fee of £134.77
- An annual management fee of £28.79
- A closure fee of £69.11
In addition we can offer the following optional services:
- Initial Property valuation £230.38
- Full Property valuation £575.93
You can pay the set up and annual fees as and when they are charged, or add them to the amount you will eventually repay. We do not make a profit from the deferred payment scheme.
Interest will also be charged. The maximum interest rate to be charged is fixed by the government and can change on 1st January and 1st July each year. Currently it is percent 3.18% (as of 1st January 2023).
I am eligible for a deferred payment but I do not want one
If you don't want a deferred payment you will be classed as a self-funder which means you would be expected to pay all your home fees from another source.
We strongly recommend that you seek independent financial advice before you take up the deferred payment scheme.