Paying for care

A deferred payment makes sure you do not have to sell your home to pay for the costs of living in a care home during your lifetime. The agreement offers you a loan from the council, using your home as security. 

There are two types of deferred payment arrangement (DPA):

1. Traditional – where the council arrange the care and pay the care home directly

2. Loan – where you have made your own care arrangements and contract directly with the providers

Generally, anyone who lives in Lincolnshire and owns their own property can apply for a DPA to cover the cost of their care. The following must also apply:

• you have been assessed by the council's Adult Care team as needing a permanent stay in a care home to meet your needs
• you do not have any other assets or savings over £23,250, apart from the value of your main or only home
• your home is not disregarded for the purposes of the financial assessment, for example, it is not occupied by a spouse or dependent relative
• you must agree to us placing a legal charge on your property
• you must sign any associated deferred payment documentation
• all co-owners will be required to sign the deferred payment agreement and the necessary documentation to secure the charge with the Land Registry; the DPA will apply to your share of the property
• there can be no other beneficial interests on the property, for example, outstanding mortgages, loans or equity release schemes, unless this is approved by us prior to entering the agreement.

When a DPA will be stopped

A deferred payment can be stopped:

• If you repay the full amount due
• If you sell your property and we are repaid from the proceeds of the sale
• On your death and the amount is paid back from your estate

Can someone else apply for me? 

Yes, if you have a financial deputy or a Lasting Power of Attorney for property and finances, they can enter into the deferred payment agreement on your behalf. It is expected that a relative or solicitor will apply to the Court of Protection to become a financial deputy where one is required but isn't yet in place.

For a loan DPA to start, legal authority must already be in place. For a traditional DPA, we will fund care on behalf of the individual receiving it whilst an attorney's application is with the court. Where it is considered that any deputy or attorney is not acting in the best interests of the individual receiving care, a referral will be made to our safeguarding team.

The costs and charges involved

The Care Act 2014 allows the council to charge interest for the duration of the deferred payment agreement – this rate will be set each year. This applies to both types of deferred payment agreement.  More information can be found in the Annual Statement of Charges in the appendices of the Charging Policy on our website.

We will also charge an administration fee to cover costs but will not make a profit from the arrangement.