Property and deferred payment agreements (DPA)
Under the Care Act 2014 the Council can offer people a deferred payment agreement (DPA) which enables a person to pay their residential care charges and get the support they need without havinbg to seel their home within their lifetime.
A deferred payment agreement (DPA) is an interest-bearing secured loan that eligible self-funding people can apply for from the Council for the purpose of paying residential care costs. The loan is secured on the self-funder’s house, and the Council releases the loan by instalments on a periodic basis, each instalment being the same sum as the residential care fees that are payable by the person (less any personal contribution that the council shall require to be made by the person).
The Council will charge the person for the costs of establishing and managing the DPA. The person can either pay for the administration costs when the costs are incurred or can ask for the costs to be added to the loan, meaning that the Council’s costs along with the loan are recovered upon completion of the sale of the home. Interest will be charged on the costs during the term of the DPA if the costs are added to the loan.
Property owned by a person is included in the financial assessment. It will not be taken into account (disregarded) when a spouse or partner continues to live there after a person moves permanently into residential care. Where the property is included in the financial assessment, the Council will disregard its value for the first twelve weeks of a person’s stay. This period is called the twelve- week property disregard period and gives people time to seek independent financial advice and consider the options available to them to fund their care and support costs. Providing a person and their property meets eligibility criteria, the person may be entitled to enter a DPA with the Council.
Where a person or their representative chooses not to enter a DPA, then after the 12-week disregard period, the full cost of care is charged, and invoices will be sent for payment every four weeks in arrears. Where full payment is not made and a debt accrues, the Council will pursue the debt under the Debt Recovery Policy.
Further information on how a Deferred Payment Agreement works and other options can be found at Deferred payments scheme | Hartlepool Borough Council.