Deferred Payment Agreement Care Home
When it comes to choosing a care home for a loved one, the financial aspect of it can be quite daunting. The cost of care homes can vary greatly depending on location and level of care required. This is where a deferred payment agreement can be a helpful option.
A deferred payment agreement (DPA) is an arrangement where the local council pays for an individual’s care home costs and the person or their estate repays the council at a later date. DPAs are available to individuals who meet certain criteria set by the local council and are only available in England.
DPAs can provide peace of mind for families who may not have the funds readily available to pay for the care home costs upfront. Instead, the costs can be spread out over time, easing the financial burden for families and ensuring that loved ones receive the care they need.
To qualify for a DPA, individuals must meet certain criteria, such as having less than £23,250 in savings and assets (excluding their home), and undergoing a financial assessment by the local council. It is important to note that DPAs are only available for permanent care home placements, not for short-term or respite care.
Once a DPA is agreed upon, the local council pays for the care home costs on behalf of the individual, and the individual or their estate is required to repay the council at a later date. Repayment can be made through the sale of the individual’s home or through other financial arrangements.
It is important to carefully consider the terms of a DPA before agreeing to it. Interest may accrue on deferred payment amounts, and the council may place a charge on the individual’s property to safeguard the repayment of the deferred payments.
In conclusion, a deferred payment agreement can be a helpful option for families who may not have the funds readily available to pay for care home costs upfront. However, it is important to carefully consider the terms of the agreement and consult with a financial advisor to ensure that it is the right option for you and your loved ones.
