Deferred Payment Agreements

Managing your care costs if you own your own home

What is a Deferred Payment Agreement?

If you are a home owner and you need care in a care home or rented supported living, the value of your home will usually be taken into account when working out how much you need to pay towards the cost of your care. A deferred payment agreement is one way to pay.

With a deferred payment agreement the council will pay towards your care costs for as long as is necessary. It is a loan from Doncaster Council using your home as security.  If you would like to read about the policy please click below.

Deferred Payments Policy

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You will be charged interest and administration fees, please see the table below for the Deferred Payment Administration Fees for April 2024 to March 2025:

How do I know if I could be eligible?

To be eligible you must:

• Own a property that is counted in your financial assessment
• Have less than a certain amount not counting the value of your home (for example in 2024/2025 this is £23,250 but it is reviewed every year)
• Need permanent care in a registered care home or a tenancy in supported living such as extra care
• Be able to understand and agree to a deferred payment agreement or have someone with the legal power to do this on your behalf

If you would like to be considered for deferred payment agreement but do not meet the conditions above it is still worth talking to your Financial Assessment Officer about it – all efforts will be made to look at individual circumstances.

How do I know if this is the right thing for me?

It is important to understand that if your financial assessment shows you are liable to pay your care costs the council will invoice you and expect to be paid. A deferred payment agreement is one way of doing this. Choosing a deferred payment agreement is an important decision. You should seek independent financial advice to find the right choice for you. There are a number of organisations who can offer support and advice including:

Topping up to choose the care provider I want

The council will usually pay a set amount for certain types of care but some care providers could charge more than this. If your choice of care provider is more expensive you may be able to use a deferred payment agreement to top up the difference.

Things to consider

• A deferred payment agreement can give you time to put other arrangements in place for example it can be a bridging arrangement until you can sell your house or a long-term arrangement covering the whole time you need care
• If you decide to make it a long-term arrangement it could give you peace of mind for the future
• Your property needs to be registered with the Land Registry to be eligible
• You will need a responsible person willing and able to look after your old home, including keeping it in good repair and properly insured
• The council does not give you a fixed sum of money upfront. The money is lent to you on an ongoing basis to pay care fees as they fall due. Interest is charged on the amount owed
• You repay the loan when you sell your house or when you die

Other things you might want to consider

• If other people have an interest in the property, all the owners will need sign up to the agreement so you should speak to them
• This might be a good time to make arrangements for someone to make decisions on your behalf if you are not able to do it for yourself in future

Further information

The officer who speaks to you about your financial assessment will be able to provide more detail about deferred payment agreements. This information is designed to let you know that they are available and some of the key things to think about.

You can also contact: The Financial Assessment Visiting Team
Email: FinAssesVT@doncaster.gov.uk
Telephone: 01302 735336

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