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Deferred payment scheme

9 May 2018

What is the deferred payment scheme?

The universal deferred payment scheme means that people should not be forced to sell their home in their lifetime to pay for their care.

By entering into a deferred payment agreement, we agree to do one of the following:

  • defer the payment of charges due to us from you, for the costs of meeting your needs in a care home or supported living accommodation
  • defer the repayment of a loan to you in instalments, to cover the costs of your care and support in a care home or supported living accommodation

Deferring payment can help people to delay the need to sell their home, and provides peace of mind during a time that can be challenging for them and their loved ones as they make the transition into care.

A deferral can last until death. However, many people choose to use a deferred payment agreement as a ‘bridging loan’ to give them time and flexibility to sell their home when they choose to do so. This is entirely up to you to decide.

Who is eligible for deferred payments?

You should be eligible if:

  • You own your own home
  • You live in or are moving to a care home on a permanent basis
  • You have less than £23,250 in capital and savings
  • Nobody else, such as a spouse, partner or dependent child needs to continue living in your home

You will need to speak to our Income Collection Team to discuss your circumstances to see if you are eligible for the deferred payment scheme.

See the Care Act guidance on deferred payments.