Most people who own a home will have an asset that is worth more than £23,250 and will therefore need to pay for the full cost of their care.
However, this means that some people cannot access their capital immediately as it is tied to the value of their home.
If the value of your capital assets (not including the value of your property) is below £23,250, then you may be able to use the value of your home to pay for the cost of your care at a later date. You can do this by entering a Deferred Payment Agreement with us.
Rather than having to sell your home immediately, you can sell your home at a later date or after death, and we'll cover the cost of your care until your home is sold. We'll then recover the valued owed from the profit of the sale.
We charge a small amount of interest to cover the administrative costs of setting up a Deferred Payment Agreement. This interest does not generate any profit for the council, and the rate of interest has been set by the government.
Currently, the interest charged on care costs paid through a Deferred Payment Agreement is 1.65%.
We'll send you regular statements detailing the outstanding charge of your account. You may wish to seek independent financial advice if you are considering a Deferred Payment Agreement.
Disposable Income Allowance
If you enter a Deferred Payment Agreement with us, you're entitled to a Disposable Income Allowance of up to £144 per week.
This is taken from your earnings from income and capital and it is your choice as to how you spend this. Some people decide to use some of their Disposable Income Allowance to pay towards the cost of their care so that their overall debt to us is lower. However, it is not necessary for you to do this and we'll never force you to do so.
Other ways of paying for your care
If you are not eligible for financial assistance and a Deferred Payment Agreement is not right for you, there are other ways to pay for the cost of your care and support.
It is recommended that you seek independent financial advice when considering using the value of your home to pay for your care. More information on alternative ways of funding your care is available from:
If your stay in a care home is temporary
If you are only receiving residential care in a care home on a temporary basis, then the value of property will not be included in the value of your capital when your contribution is calculated.