Who this page is for

This page is for people who need to pay for their own adult social care, and are considering a deferred payment agreement to help them meet the costs.

You may not need to sell your home straight away

Moving into residential care can bring difficult financial decisions, especially when much of your money is tied up in your home.

If you need to pay for your care but cannot easily access the value of your property, a deferred payment agreement may help.

A deferred payment agreement allows you to delay paying part of your care home costs until a later date, so you do not have to sell your home immediately.

What is a deferred payment agreement

A deferred payment agreement is a type of loan arranged through the council.

Instead of paying the full cost of your care home fees immediately:

• we pay the part of your care costs that you cannot currently afford
• the money is repaid later, usually when the property is sold.

The agreement is secured against your property through a legal charge.

You do not receive a lump sum payment.

In simple terms

A deferred payment agreement can:

• help avoid selling your home immediately
• give you more time to make financial decisions
• allow care costs to be repaid later.

The money still needs to be repaid in the future, together with any interest and agreed charges.

If your savings are running low

You may be able to apply if:

• you are moving into permanent residential care
• you own a property
• your savings and assets (excluding your property) are below the financial threshold
• your property is not disregarded in the financial assessment.

We will complete a care needs assessment, and a financial assessment before confirming eligibility.

If you are not eligible

If you are not eligible to enter into a deferred payment agreement, you will need to find a different way of funding your care, and may have to consider selling your home. You will be responsible for arranging and paying for your care yourself, but we can support you with this process.

How a deferred payment agreement works

Costs, interest and responsibilities

A deferred payment agreement is a loan secured against your property. There will be interest charges, administration fees, and legal costs. We will explain all charges clearly before any agreement is signed.

During the agreement, you will usually remain responsible for maintaining and insuring the property, paying any applicable household bills, and keeping it in reasonable condition. Some people choose to rent out the property during this period to help cover ongoing costs.

Things to consider before deciding

A deferred payment agreement can provide flexibility and reassurance, but it may not be the right option for everyone.

It can help to think about:

• future care costs
• inheritance wishes
• ongoing property responsibilities
• how long care may be needed
• alternative ways of funding care.

Many families find these decisions emotional as well as financial.

You do not need to make the decision alone, and independent advice can help you feel more confident about your options.

You can find more information about financial advisers on Financing your long-term care.

Get in touch

We know this is a lot of information to take in during a difficult time. If you have questions or need some more help, you can contact our adult social care team who can talk you through the next steps.