Paying for a care home

Includes ways to pay for a care home and how to apply for financial support

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Deferred Payments

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

A deferral can last until death. However, many people choose to use it to give them time and flexibility to sell their home when they choose to do so. This is entirely up to you to decide.

How to get a deferred payment agreement

An application form for deferred payment will be sent out with your financial assessment outcome letter. You can also download the deferred payment application form (DOC, 31.15 KB).

All you need to do is fill out the form and return it to the Income Collection Service. The full address can be found on the form.

You have 14 days from receiving the form to send it back. After 14 days we will assume that you do not want a deferred payment agreement.

Applying on behalf of someone else

If someone lacks the mental capacity to make a decision about deferred payment, a Court of Protection appointed deputy can make the application on their behalf. 

How deferred payment works

Your financial assessment will use your income to decide how much you must contribute towards your care. We will then pay the rest as a loan to you. This loan will be repaid once your home is sold. The solicitor dealing with the sale will be able to see that we hold an interest in the property and will repay us directly.

After your loan has been paid your care contribution will be reassessed.

Costs involved

There is a one-off fee of £450 to cover the legal and administrative costs of setting up your deferred payment agreement.

Like with other loans, there will also be interest charges. These are based on a daily compound rate set out by the Office for Budget Responsibility. The current interest rate is 4.05% APR (from 1 July 2024).

Who is eligible

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

The property must be registered at the Land Registry to be eligible for deferred payment.

You will need to speak to our Deferred Payments Team to discuss your situation to see if you are eligible for deferred payment.

Contact the Deferred Payments team
Get in touch if you have any questions about a new or current deferred payment agreement.
Office hours:
Monday - Friday8:30 am - 4:30 pm