Paying for care
Deferred payment agreements (DPA)
If you own your home, a DPA allows you to use the value of it to secure an agreement with Liverpool City Council to pay for your long-term residential care.
How does the agreement work?
If you are a home owner, we will assess your finances and set a weekly care charge based on your income which you must pay the council.
The remaining balance of your residential care placement is deferred until you are ready to sell your home, or it is paid out of your estate.
The example below illustrates how this works:
- the full cost of your residential care placement is £500 per week
- your assessed care charge based on your income is £200 per week
- the difference between the £500 and the £200 is £300 - this £300 per week is deferred until you are ready to sell your home
If you are on a very low income, the full cost of your residential care placement can be deferred.
You can also ask for a 'loan-style DPA' secured against your home. This is where the council loans you the money for your residential care placement. Please contact us for further information about this type of scheme.
How much will it cost?
We will charge a fee to set up a DPA and an annual fee for running costs. 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 1.15 per cent, as of 1st January 2021.
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 DPAs.
Who is eligible?
You should be eligible for a DPA if you:
- Are receiving care in a care home or nursing home (or you are going to move into one soon).
- Own, or have part ownership of, your home (unless your partner or certain others live there).
- Have savings and investments of less than £23,250 (not including the value of your home or your pension pot).
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 DPA we will offer it to you when this assessment has been completed.
I need residential care but my partner still lives in our home
Provided your partner lives in your home as their main or only home, and you are not estranged or divorced, we will exclude the value of your home when we work out how much you will have to contribute towards the cost of your care.
I am eligible for a DPA but I do not want one
If you don't want a DPA you will be classed as a self-funder which means you would be expected to pay all your home fees from another source.
If you need advice on paying for your care, you can speak to seek independent financial advice.