Deferred Payments Agreement policy (April 2015 - Revised July 2017)
From 1 April 2015, when the Care Act 2014 was introduced, all local authorities in England are required to offer deferred payment agreements to eligible people as one option for paying for care home costs.
A deferred payment agreement is an arrangement with the Council which enables people to use the value of their home as security for a loan from the Council to help pay care costs. Conditions apply and the person will have to sign an agreement with the Council. A copy of the agreement is appended to policy.
The loan has to be repaid but people can delay repayment until they are ready to sell their home or until after their death.
Deferred payment agreements are just one option for paying for care costs. We recommend that people seek independent financial advice about the various options for paying for care. Free and personalised telephone advice is available from the Care Advice Line.