Paying for care
Deferred payment agreements (DPA)
A DPA is offered to people who, following a financial assessment, are required to pay the full cost of their residential care. It gives you the choice of using the value of your home to secure the agreement (which is effectively a loan) that will pay your costs until you are ready to sell it.
If you are eligible for a DPA, we will pay your costs for you until you are ready to sell your home to repay the debt. The debt can also be paid out of your final estate.
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 1.45 per cent (as of 1st January 2020).
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.