As we age, the need for complex care can increase, which can often require a move to a care home. The cost of care home fees can be substantial, and for many, it can be an overwhelming burden. Fortunately, there is a way to alleviate the financial stress of care home fees through a deferred payment agreement.
A deferred payment agreement is a scheme offered by local councils in the UK. It is designed to help individuals who cannot afford to pay for the full cost of their care and accommodation in a care home. Through this agreement, the local council can lend a person the funds they require to pay for their care home fees. The loan is repayable at a later date, typically when the individual sells their home or passes away.
The benefits of a deferred payment agreement are numerous. The scheme can help to alleviate the financial burden of care home fees and provide peace of mind to those who are worried about paying for their care. It can also help to preserve assets such as the family home, which would otherwise need to be sold to fund care costs.
To qualify for a deferred payment agreement, a person must meet specific criteria. They must have savings and assets of less than £23,250, and they must have been assessed as needing residential care. The local council will carry out a financial assessment to determine eligibility, and if they are eligible, the council will agree to lend them the funds to pay for their care home fees.
The deferred payment agreement can offer a significant advantage when it comes to managing care home fees. It allows individuals to choose the care they need, without worrying about the cost. It also provides a flexible payment option, which means that repayments are only made when the individual`s assets exceed the £23,250 threshold.
Overall, the deferred payment agreement can be a valuable financial option for those who are concerned about the cost of care home fees. By providing a flexible payment solution, it can help individuals to maintain their independence and preserve their assets. If you are considering a care home for yourself or a loved one, it is worth exploring the option of a deferred payment agreement with your local council.