If you own your home and are moving into a care home, you might worry about how to pay for it. A Deferred Payment Agreement (DPA) can help.
It’s designed so you can get the care you need, without selling your home right away.
Deferred Payment agreements
A Deferred Payment Agreement is a way for the council to help cover your care home costs, now.
Instead of paying the full weekly care home fees up front, you delay some or all of the cost. You pay it back later — usually:
- when your home is sold, or
- after you pass away.
The council will get the money back from the sale of your home or from your estate.
How it works
A Deferred Payment is a loan from Brent Council to help pay for any care costs. The loan is linked to your home, which acts as security.
If you qualify, you won’t get a lump sum of money. Instead, the council pays part of your care fees each week. This continues for as long as you need care and there is enough value in your home.
If you can afford to pay part of the cost, you will do so each week. The council pays the rest – this is the Deferred Payment.
The money the council pays adds up over time. You pay it back later, usually when your home is sold. You can also repay the money in another way, like using an inheritance or help from your family.
Your Deferred Payment agreement
If you qualify, you’ll need to sign a legal agreement with the council. This allows the council to place a legal charge on your home, which helps secure the loan. There is a cost for setting this up.
If you own your home with someone else, all co-owners must agree and sign the document. If any co-owner refuses, you won’t be able to use the Deferred Payment scheme.
The agreement sets out what the council is responsible for, and what you need to do. One of your responsibilities is to make sure your home is properly insured and looked after.
You’ll need to cover these costs yourself, using your personal allowance – up to £144 per week, or it can be less if you prefer.
Can I get a Deferred Payment Agreement?
You might be able to get one if you:
- are moving into, or already live in, a care home
- own your home
- have less than £23,250 in savings (not counting your home)
- have to pay the full cost of your care
- can make legal decisions, or have someone who is allowed to act for you (like someone with Power of Attorney)
If someone is managing your money for you, we’ll need to see proof that they have the legal right to do this.