Wiltshire Council
ADULT CARE DEFERRED PAYMENTS SCHEME GUIDE
What is a Deferred Payment?
A deferred payment is a loan, whereby Wiltshire Council will pay the net care costs
on your behalf and defer receiving the payment back from you until some point in the
future. Your property will be used as security to repay the loan. The scheme was
introduced nationwide from 1st April 2015 as the Care Act 2014 came into force. Its
aim is to ensure you do not have the sell your home to pay for care during your
lifetime. Wiltshire Council offer Deferred Payments whether or not you have decided
to sell your home.
As part of the process you will be required to undertake a means tested financial
assessment based on the income and savings that you have. This assessment will
ascertain the weekly contribution that you will make towards the cost of your care
from your regular income. Your contribution must be paid direct to the care provider.
What is a Deferred Payment Agreement (DPA)?
It is a legal agreement between you and Wiltshire Council and allows Wiltshire
Council to apply a charge on your property and provide it with security to pay back
the loan. The agreement will need to be signed by you and anyone who stands to
financially benefit should your property be sold. Until the agreement is in place, and
the subsequent charge registered with the land registry, Wiltshire Council will not
make any payments for care fees. It is strongly advised that you seek legal advice
before entering into a DPA.
Who is eligible for a deferred payment?
You are eligible for a DPA if:
(i)
You have been assessed as having eligible needs, which Wiltshire Council
decides should be met through a permanent care home placement or though
supported living;
(ii)
You own a legal or beneficial interest in a property which is your only home;
(iii)
You have less than the upper capital limit in assets excluding the value of your
home;
(iv)
Your home is not disregarded as an asset (see below)
(v)
You, and anyone with a beneficial interest in the property, agree to the terms
and conditions set out in the Deferred Payment Agreement and return the
signed agreement
(vi)
You are able provide adequate security for the debt, by way of a legal mortgage
or land registry charge over your property
(vii) You have capacity to enter into a legal agreement, or someone else has the
legal right to make this decision on your behalf.
(viii) You are not using the deferred payment to finance a mortgage payments on
supported living accommodation
How does it work?
The following process steps would normally apply (please note this is at the point
where you have been assessed as having eligible needs and have decided on your
care provider/placement and completed a financial assessment)
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You complete the form deferred payment application form DPA1 and return it
to Wiltshire Councils’ finance team.
Wiltshire Council will check with the land registry that you are sole or part owner
of the property check
Wiltshire Council will arrange an appraisal of the property to provide an opinion
as to the value of that property. This will require access to the property so you will
be contacted to arrange an appointment
When all the required information is received Wiltshire Council will calculate the
equity limit (see below) and determine the sustainability of the proposed loan.
Generally then draw up the Deferred Payment Agreement and send it to you
along with the land registry form CH1
You check the agreement and sign it along with any co-owners and return the
DPA and CH. It is recommended you seek legal advice at or before this stage.
Wiltshire Council apply a legal charge against your property and will write to you
to confirm.
Wiltshire Council will begin to make payments to the care home on your behalf
and record all payments made. Payments will be backdated to the start date of
care where necessary.
Wiltshire Council will send you statements every 6 month to keep you updated on
the loan costs.
How much money can be deferred?
The maximum amount that can be deferred is known as the Equity Limit. This is
calculated as follows:
+ your share of the property value
- less 10% (to allow for future selling costs)
- less the lower capital limit (currently £14,250)
- less any charges already placed on the property (i.e. existing mortgage)
where appropriate.
The amounts deducted from the property value act as a buffer, to cover any
subsequent interest which continues to accrue, and will provide a small ‘cushion’ in
case of small variations in value of the property. Generally it should take two years of
more to reach the equity limit. Where this is not the case Wiltshire Council will
consider whether the cost of your care is sustainable under the deferred payments
scheme. This could mean that a third party needs to contribute more towards your
care in addition to the deferred payment or a more sustainable care option needs to
be considered.
How much will it cost me to have a DPA?
The overall costs will depend on the length of time the DPA lasts. A summary of fees
are given below:
 Each DPA incurs a set-up fee of £579 – This covers the costs of the legal work
and valuation of the property
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Each DPA incurs a closure fee of £144 – This covers the costs of the legal
work and removing the legal charge on the property
Interest – Interest is charged from the date the payments are made for the care
to the date the full balance of the DPA is repaid. Interest is charged on a
compound basis. The interest rate applied is the government’s “15-year average
gilt yield” plus 0.15%. The 15-year average gilt yield is set by the Office for
Budget Responsibility (OBR) twice a year, on 1st January and 1at July, in their
Economic and Fiscal Outlook report. The initial interest rate will be denoted on
your deferred payment agreement and you will be written to each time this rate
changes.
Valuation fees – Each valuation costs £150. The initial valuation is included in
the initial set up fee. Further valuations at 50% and 70% and others where
required will incur this charge and will be added to the deferred payment.
Other costs – Wiltshire Council will not charge an administration fee for running
the DPA, but there may be other costs that are incurred, for instance legal fees to
recover a debt due.
Please note: As standard all fees and interest will be automatically added to your
deferred payment.
PLEASE NOTE: if for any reason the deferred payment agreement does not
go ahead after completing the application form DPA1, you will be liable for
any costs paid by Wiltshire Council in setting up the deferred payment,
including valuation and land registry fees. You will be sent an invoice for
the costs incurred.
When will payments for my care cease to be deferred?
Payments against the DPA will cease to be paid by Wiltshire Council upon one of the
following events (please note: fees and interest will continue to be charged against the
Deferred Payment until it is repaid in full):
1. Where the equity limit has been reached – When the equity limit is at 50% and
70%, Wiltshire Council will arrange for a revised valuation of your property. This
will determine a revised equity value and limit and date when the DPA equity limit
will be reached. When you are within 6 months of the equity limit a member of
Wiltshire Council’s care team will work with you to seek approval for your care to
be funded by Wiltshire Council (less your client contribution).
2. Where the value of your property has decreased in value so the upper capital
limit is reached – You must inform Wiltshire Council if you believe this to be the
case. Wiltshire Council will arrange for a revised valuation of your property. The
care team dealing with your case will seek approval for your care to be funded by
Wiltshire Council (less your client contribution).
3. Where you become eligible for full funding from a local authority or health
funding to pay for your care
4. Where your property becomes disregarded for any reason
5. Where you no longer have a need for care
6. Where you die – Future correspondence will be with the executor of your estate
and payment will be expected 90 days after the date of your death. After this 90
day period, if Wiltshire Council conclude that active steps to repay the debt are not
being taken, Wiltshire Council may enter into legal proceedings to reclaim the
amount due.
7. Where you or a third party decides to pay off your Deferred Payment, for
instance when your house is sold – Wiltshire Council will assume that you will
be paying for your own care in the future and will cease payments to the care home
and inform them in writing, giving 30 days notice, that you will pay for the full cost
of care from the specified date. You must arrange to pay the care home directly
from that date. You must inform Wiltshire Council if your assets drop below the
upper capital limit giving three months notice of reaching this limit (funding will not
be backdated to before the date you asked Wiltshire Council for funding). If you
believe you have reached the upper capital limit when the Deferred Payment
closes you must inform us immediately. Wiltshire Council will arrange a reassessment of your needs and finances. The care team dealing with your case will
seek approval for your care to be funded by Wiltshire Council (less your client
contribution).
In all the instances above you will receive 30 days notice that payments will
cease and a Final DPA statement. No further payments will be charged against
the DPA, although interest and charges will still accrue, and you will receive 6
monthly statements until the DPA is repaid in full. When you are ready to repay
the DPA balance, you must inform Wiltshire Council who will prepare a final DPA
statement (see FAQ’s below “Q. I want to repay my DPA, who do I contact?”).
Wiltshire Council will arrange for a valuation of your property every 3 years after the
end of the DPA whilst the deferred payment amount remains unpaid.
8. Where you breach the terms of the DPA as set out in the agreement - Wiltshire
Council will assume that you will be paying for your own care in the future and will
cease payments to the care home and inform them in writing, giving 30 days notice,
that you will pay for the full cost of care from the specified date. You must arrange
to pay the care home directly from that date. You will receive a final DPA statement
and an invoice from Wiltshire Council for the full DPA costs. If the invoice remains
unpaid after 30 days, Wiltshire Council will issue you a reminder notice and after a
further 14 days a final notice. If the invoice still remains unpaid, Wiltshire Council
will issue legal proceedings to recover the money due. Interest will still accrue until
the debt is paid and Wiltshire Council will recharge any legal costs incurred to
recover the debt and charge a higher rate of interest (typically 8%) on the balance
due, 30 days after the invoice was raised.
When does the DPA end?
The DPA does not end until the full balance of the deferred payment, including interest
and fees, is repaid to Wiltshire Council. Until this time interest and fees will continue
to accrue. When the final payment is received Wiltshire Council will release the legal
charge on your property with the land registry.
What do I do to request a deferred payment? Complete form “DPA1 - Application
for a deferred payment” and return it to the Business Services Finance team as
stated at the top of the form.
What happens if Wiltshire Council cannot offer me a Deferred Payment?
It is hoped that instances where this occurs will be rare, but can occur if:
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You do not return the Deferred Payment Agreement
A co-owner will not sign the Deferred Payment Agreement
Wiltshire Council cannot register a first legal charge on your property
You do not meet the eligibility criteria for a deferred payment
In these instances you will have to find alternative ways to fund your care and make
arrangements to pay the care provider direct until your assets reach the upper capital
limit, at which point you should contact Wiltshire Council to request funding.
There may be instances where the DPA is not offered through no fault of your own,
these include:
5. The value of your property means you have no equity as an asset
6. Your property is disregarded
7. It transpires that you do not have a beneficial interest in your property
In these instances Wiltshire Council would begin the process to fund your care.
For more information about Wiltshire Council’s Deferred Payment Scheme,
please see FAQ’s below and visit www.yourcareyoursupportwiltshire.org.uk
selecting the Deferred Payments tile. If you wish to speak to someone at
Wiltshire Council about the scheme please contact either Darren Law on
01225 713905 or Kerry Davies on 01225 713431. Or you can email Darren on
darren.law@wiltshire.gov.uk or Kerry on kerry.davies@wiltshire.gov.uk.
To apply for a deferred payment please complete the form DPA1 below and
return it to:
By email: please scan a completed SIGNED copy with required scanned
attachments to financeplacements@wiltshire.gov.uk
By Post: Business Services Finance, Placements Finance Team, Wiltshire Council,
County Hall, Trowbridge, Wiltshire, BA14 8JN.
DPA1 - Application for a Deferred Payment with Wiltshire Council
Please complete the information below to apply for a deferred payment. You should read the
document “A guide to Deferred Payments” before completing this application along with the
FAQ’s. Applications should be returned either by email (scanned signed copy) to
financeplacements@wiltshire.gov.uk or by post to: Business Services Finance, Placements
Finance Team, Wiltshire Council, County Hall, Trowbridge, Wiltshire, BA14 8JN
Section 1. About You (the adult care customer)
1.1 Surname
________________________________________
1.2 First Name
________________________________________
1.3 Middle Name(s)
________________________________________
1.4 Date of Birth:
__ __ / __ __ / __ __ __ __ (dd/mm/yyyy)
1.5 Current Address ____________________________________________________
1.6 Post Code
___________
Section 2. About the care you will Receive
2.1 Care Provider Name _________________________________________________
2.2 Care Home / supported living address: ___________________________________
______________________________________________________________________
2.3 Post Code
___________
2.4 Provider Contact details: Tel: ____________________________
Email _____________________________
2.5 Agreed weekly GROSS fee £_______________
2.6 Please state the number of days you will have to pay the care provider after the date the
care ends for any reason: _________ days
2.7 Please supply a copy of the terms and conditions document and / or contract with your
care provider with this form. Please also be aware that the contract for care is between yourself
and the care provider.
Section 3. About the Property you own
3.1 Address
____________________________________________________
____________________________________________________
3.2 Post Code ___________
3.3 What is the approximate resale value of your property £_________________
3.4 For leasehold properties, what is the remaining term of the lease? _________years
3.5 Do you have a mortgage or other secured loan on the property? Yes or No _________
3.5a If YES, what is the current outstanding loan value £_________________
3.6 Do you co-own the property with someone else? Yes or No _________
3.6a If YES, how many other people own the property with you? ______
3.6b If YES, what percentage of the property do you own? ______%
3.6c Please provide name and address of co-owners below:
Co Owner 1:Name ______________________________
Address __________________________________________________
___________________________________________________
Post Code _____________________
Co Owner 2:Name ______________________________
Address __________________________________________________
___________________________________________________
Post Code _____________________
Please provide details of further co-owners on a separate sheet or in email attaching this
form.
3.7 Are you selling or do you intend to sell your Property? Yes or No _________
3.8 Please provide details of your solicitors below:
Company Name _______________________________________________
Contact Name
_______________________________________________
Address
_______________________________________________
_______________________________________________
Post Code
_____________________
Telephone Number _____________________________________
Email address
_____________________________________
3.8a If you do not propose to instruct a solicitor to deal with the completion of your DPA
you will need to provide a completed ID1 form OR where a power of attorney/deputy is
appointed you will need to provide:
1) a letter or report from a medical doctor in respect of yourself as evidence that you
lack capacity if appropriate
2) form ID1 in respect of your power of attorney/attorneys – where a power of attorney is
appointed jointly and severally only the power of attorney dealing with this matter needs
to provide a completed form ID1, - where a power of attorney is appointed jointly each of
them will need to provide a completed form ID1.
The form and guidance can be found at
https://www.gov.uk/completing-forms-id1-and-id2
3.9 Are you renting or do you intend to rent your property? Yes or No _________
3.9a If YES, what is the estimated rental income per month£__________________
3.9b If YES, what is the estimated costs of renting per month£__________________
3.9c If YES, what is/expected to be the rental start date ___/___/_______ (dd/mm/yyyy)
3.10 Does the property have building insurance in place Yes or No _________
3.10a
If NO, please state the reasons why in the box below
3.10b If YES, please provide a copy of your current insurance policy with this application
3.11 Please briefly explain how you plan to maintain your property during the term of the
DPA in the box below.
3.12 Do you own or co-own any other properties? Yes or No _________
3.12a If YES, please provide property address below
Address
_______________________________________________
_______________________________________________
Post Code
_____________________
3.13 Upon receipt of this completed application form, we will instruct our contracted property
valuer, Spicerhaart, to contact you to arrange a convenient date and time to value your
property. An agent of Spicerhaart will therefore need to contact you to arrange the
valuation, which includes viewing the inside of the property. Please provide below the
name and contact details of the person who will be available to meet Spicerhaart:
Contact Name _________________________________
Daytime Contact Telephone Number ______________________________
Address __________________________________________________
Post Code _____________________
Email Address ________________________________________
Special instructions (i.e. specific contact times / dates you will be uncontactable etc)
Please note: We will write to you by letter or email to inform you that we have
instructed Spicerhaart to complete a property valuation. When requesting the
valuation, we will provide Spicerhaart with a ‘Letter of Authority’. Please ensure
you ask to see this letter of Authority and identification before the valuation
commences. Spicerhaart will not retain any personal details provided after the
valuation is complete, to comply with data protection regulations.
Section 4. DIA
4.1 Please state the amount of weekly Disposable Income Allowance (DIA) you would like to
retain to cover your personal expenses and running costs of your property (see
document ‘A guide to Deferred Payments' for an explanation of DIA)
I would like to retain £ ______________per week for DIA (Min £24.90 - Max £144)
Section 5. Declaration:
I declare that:
* I have received and read the document entitled “A guide to deferred Payments and FAQ’s“.
* I understand that I should seek independent legal advice before entering into a Deferred
Payment Agreement (DPA)
* I understand that in completing this application, Wiltshire Council will, if I am eligible,
arrange a deferred payment agreement contract to be sent to me
* I understand that I will be contacted to arrange a valuation of my property
* I understand that if for any reason the deferred payment agreement does not go ahead
after completing the application form DPA1, I will be liable for any costs paid by Wiltshire
Council in setting up the deferred payment to that point, including valuation and land registry
fees
* I have contacted all co-owners of the property and informed them of my intention to enter
into a deferred payment agreement and register a charge on the property and they have
agreed to enter into the DPA and the Legal Charge
* I understand that if the deferred payment agreement cannot go ahead, I will have to
arrange for payment of care fees myself and I will be liable to refund Wiltshire Council any
payments they have made for my care.
* I have completed this application form to the best of my knowledge
* The property is registered at the land registry in my and co-owners names
Name (please print)
________________________________________
Signature
______________________________
Dated
___ ___ / ___ ___ / ___ ___ ___ ___ (dd/mm/yyyy)
Signed in my capacity as POA / Deputy (if applicable) _________________________
Your Address __________________________________________________
Post Code _____________________
Email Address ________________________________________
As standard, Wiltshire Council will correspond with you via email. If you would prefer to
receive correspondence by post please tick this box
6. Documentation to include in your application:
Please ensure you have included all the relevant documentation below (where
applicable) with your application. Please tick the relevant box to state you have
included the documentation with your application. * denotes required information.
* Copy of contract / terms and conditions with the care provider
Copy of a legally binding agreement denoting your share of the property where it is
not in equal shares
Copy of your own appointed property valuation
Copy of your current mortgage or other financial charge on the property
* Copy of your current insurance policy for your property
Completed form ID1 – certificate of identity for a private individual, where you are
not intending to instruct a solicitor. The form and guidance can be found at
https://www.gov.uk/completing-forms-id1-and-id2
Where the customer denoted in section 1 lacks capacity and this form is signed and
completed by someone else:
Copy of the court order appointing a Resident/Enduring or Lasting Power of Attorney
OR Deputy appointed by Order of the Court of Protection.
A copy of a letter or report from a medical doctor in respect of the customer denoted
in section 1 as evidence that they lack capacity if appropriate
Frequently Asked Question’s (FAQ’s)
Q.
A.
Where can I get independent financial advice?
Financial advice is available to older people and their families to help them
plan for long-term care, should they need it. Wiltshire Council, working in
partnership with other organisations, has developed an arrangement that
ensures financial advice and support is easy to obtain and access. Many older
people face significant challenges, including having a large investment in their
homes with little income to provide for long-term care. Also, most wish to pass
on some financial benefit to their families.
Wiltshire Council has identified two qualified and accredited independent
financial companies with professional competency and accreditation in longterm care planning. These companies, along with a number of others, are
approved by the Society of Later Life Advisors (SOLLA):
Ashcourt Rowan
Tel: 01225 469424
wilts@ashcourtrowan.co.uk
Eldercare Solutions
Tel: 0800 0821155
advice@eldercaregroup.co.uk
These two organisations have been identified by Wiltshire Council to provide
independent specialist advice and products specifically tailored to the needs
of older people. Please note that these companies will charge for their
services. Charges will be made clear to you before you decide to accept their
services.
There are a number of other Independent Financial Advisors available who
are accredited by the Society of Later Life Advisors. You can search for
SOLLA registered advisors through the SOLLA website here. Wiltshire
Council recommends that you should always check companies have this
accreditation in place before discussing your financial situation with them .
Q.
A.
How is the Equity Limit calculated?
The maximum amount that can be deferred is known as the Equity Limit.
This is calculated as follows:
+ your share of the property value
- less 10% (to allow for future selling costs)
- less the lower capital limit (currently £14,250)
- less any charges already placed on the property (i.e. existing mortgage)
where appropriate.
For example: You own 50% of a property worth £200,000 and there is no
mortgage or other charges on the property. The equity limit is calculated as
follows:
Full property value (A)
Your share of the property value (50%) (B)
less 10% (C)
£200,000
£100,000
-£20,000
less the lower capital limit (D)
less any charges on the property (E)
Equity Limit (B – C – D - E)
-£14,250
-£0
£65,750
Q.
A.
What is a ‘top-up’?
This is the extra cost of your care placement over and above the costs Wiltshire
Council would normally pay. You must bear in mind when choosing your chosen
provider that if you have a ‘top-up’ and you later apply for Council funding, for
instance when the equity limit is reached, Wiltshire Council will give
consideration as to whether it is prepared to fund your top-up ongoing. If a
revised fee cannot be negotiated in your current placement provider, Wiltshire
Council will consider if your needs must be met in another placement.
Q.
A.
What is meant by sustainability?
Generally, the NET care fees paid by Wiltshire Council under the deferred
payment, should take two years (104 weeks) or more to reach the equity limit.
The length of time it will take to reach the equity limit will be calculated before
the deferred payment agreement is sent to you. Where the equity limit will be
reached within two years, Wiltshire Council will consider whether the cost of
your chosen care is sustainable under the deferred payments scheme. This
could mean that a third party needs to contribute more towards your care in
addition to the deferred payment or you need to consider care at a lower cost.
You will be contacted by a member of our care team should this be the case.
For example: Your equity limit is £65,750 and you have chosen a care home
which charges £1,000 per week. Your client contribution, including your
chosen DIA amount, is £100 per week. The weekly charge to your deferred
payment would therefore be £900. You would reach your equity limit within 73
weeks (1 year 147 days). This is calculated as follows:
Equity Limit (A)
Net care fees per week (B)
Number of weeks to reach the equity limit
(A divided by B)
Q.
A.
Q.
£65,750
£900
73
Why is the value of my home taken into account for my financial
assessment?
When undertaking a financial assessment as set down in The Care Act 2014,
the Local Authority will need to look at all of your assets. This includes both
capital (e.g. a property) or Income (e.g. an occupational pension). This is to
ensure that those who can afford to pay for their own care from their regular
income or assets do pay for their own care. The government sets limits on the
amount of assets a person is allowed to retain. This is known as the upper
capital limit and currently stands at £23,250. There is also a lower capital limit
under which any capital asset including savings can be disregarded. This is
known as the lower capital limit and currently stands at £14.250.
When is my property not included in the financial Assessment (known
as a property disregard)?
A.
Your property would normally be disregarded in your financial assessment if
one of the following people lives in your home as their main residence:
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your spouse or civil partner
a relative over 60
a relative who is “incapacitated” (sick or disabled)
a person under the age of 16 and whom you are liable to maintain.
A person who has been living with you and has been your long term carer.
Please note you will need to be able to demonstrate how long you have lived
at the property and what care you have provided.
If one or more of the above conditions apply, you do not need to use the value
in your property to pay for your care. This may mean that you fall below the
upper capital limit and therefore may be eligible for funding by Wiltshire
Council. In this case you would not need a deferred payment from Wiltshire
Council.
Q.
A.
What is a 12 week property disregard and who is eligible?
A 12 week property disregard applies for the first 12 weeks that you become a
permanent resident of a care home or enter supported living and you meet the
eligibility criteria for a deferred payment. Th12 week period is provided to
allow you to decide how you would like to use your property to pay for your
ongoing care (i.e. request a deferred payment from Wiltshire Council or sell
your property). During this 12 week period you care will be funded by Wiltshire
Council; however you will still need to pay an assessed client contribution.
You may also have to pay a ‘top-up’ if the cost of your chosen care is above
the rate Wiltshire Council would fund. Please note that during the 12 week
property disregard period the top up can be met from your own savings or by
a third party. Once the 12 week property disregard ends the top up will need
to be met by a third party, if applicable, it cannot continue to be taken from
your own savings.
You will be eligible for 12 weeks funding from Wiltshire Council if:
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You meet the eligibility criteria for a deferred payment
You were not already resident in a care home or supported living
placement at the time you contacted Wiltshire Council for support.
If you are already in a care placement, you will be eligible for the 12 week
disregard if:
 Your home was previously disregarded or you are self funding
AND
 You have a sudden and unforeseen event which means you have to make
a choice about what to do with your property to fund your care.
An example of this is if you have a spouse living in your home (so the property
is disregarded) and your spouse dies.
Q.
What is classed as supported living?
A.
supported living is accommodation which is not a care home and is—
a. in premises which are specifically designed or adapted for occupation by
adults with needs for care and support to enable them to live as
independently as possible; or
b. provided—
i. in premises which are intended for occupation by adults with needs for
care and support (whether or not the premises are specifically designed
or adapted for that purpose); and
ii. in circumstances in which personal care is available if required.
Personal care may be provided by a person other than the person who
provides the accommodation
c. The accommodation does not include premises
i. in respect of which the adult is for the time being entitled to dispose of
the fee simple, whether or not with the consent of other joint owners; or
ii. which the adult occupies other than under a licence or tenancy
agreement. “tenancy” means a tenancy which is not a long tenancy.
Q.
A.
I want to repay my balance on the DPA loan, who do I contact?
Please either email FinancePlacements@wiltshire.gov.uk OR write to Business
Services Finance, Placements Finance Team, Wiltshire Council, County Hall,
Trowbridge, Wiltshire, BA14 8JN
A closing statement and invoice will be given to you within 10 working days. We
will also need your contact details and address. Please note that if the full
amount due is not paid within 30 days of the invoice date, interest will continue
to accrue until the DPA is repaid. If more interest is added, you will receive a
subsequent invoice for the extra amount due. Wiltshire Council will not
discharge any legal charge over the property until the full amount due is paid in
full.
Q.
A.
Who is the contract for care between and who should inform Wiltshire
Council of any changes in the care homes fees?
The contract for care is between you and the care provider as you are selffunding your care. You must make Wiltshire Council aware of any changes to
care home fees during the duration of the deferred payment and provide
Wiltshire Council with a copy of the terms and conditions agreed between you
and the care provider.
Q.
A.
How are payments made to the care provider?
Wiltshire Council will make payments direct to the care provider, less client
contributions and top ups.
Q.
A.
What happens if I don’t pay the deferred payment when it ends?
This will depend on the circumstances and what steps you are taking to repay
the amount due. If Wiltshire Council feels that you are not actively trying to
repay the debt we will initiate legal proceedings to recover the amount due.
Please note that interest will continue to accrue on the amount due until it is
repaid in full. Wiltshire Council will not discharge any legal charge over the
property until the full amount due is paid.
Q.
A.
I do not have enough money to pay off the full balance of the deferred
payment, what should I do?
This could potentially happen as the eventual sale price of the home, less
selling fees, is not as much as anticipated. If this is the case you should inform
us as soon as possible. You may be required to undertake a new financial
assessment to ascertain your contribution towards your care based on your
new financial situation. Wiltshire Council will determine the revised capital
amount due (the accrued interest and fees will be payable even if this takes you
below the capital limit) and send you a revised statement and invoice. Ongoing
interest on the revised amount due will continue to accrue until the debt is repaid
in full.
Q.
A.
Do I need to sell my home to pay for my care?
No, you do not. The Deferred Payments scheme was specifically set up so
that you did not have to sell your home during your lifetime. If you have
decided to sell your home you can still apply for a deferred payment in order
to pay the care fees whilst the home is being sold. This is sometimes referred
to as a bridging loan
Q.
What happens if I don’t return the deferred payment agreement or a coowner will not sign the agreement?
You will have to find alternative ways to fund your care and make arrangement
to pay the care home direct until your assets reach the upper capital limit.
Wiltshire Council will write to you to confirm this.
A.
Q.
A.
How will I know the balance of my deferred payment agreement?
You will receive a statement every six months from the commencement date of
the deferred payment. The statement will show the amount of fees deferred,
interest and administrative charges accrued to date, the total amount due and
the equity remaining in the home, along with an estimate of the date the equity
limit will be reached. Wiltshire Council will also provide a statement on request
within 28 days.
Q.
A.
What do I do if I do not agree with your valuation of my property?
You have the right, at your own cost, to instruct a valuer to value your property
for you. You should inform Wiltshire Council in writing (email accepted), with
your valuer’s report. We will also accept 3 estate agents valuations of you
property and will calculate the value by adding the highest and lowest
valuations together and dividing that number by 2. We will consider the
valuation you have supplied but we are under no obligation to accept it. We will
write to you either to accept your valuation or to inform you of our decision on
the valuation figure to be used. Wiltshire Council’s figure will be taken for the
equity value calculation. If there is no agreement about the value (and hence
no equity limit can be calculated) then the procedure for disputes shown below
will be followed.
Q.
A.
What happens if I own more than one property?
You are not eligible for a deferred payment and will have to find alternative ways
to fund your care (e.g. selling your second property) and make arrangement to
pay the care home direct until your assets reach the upper capital limit and you
only own one property. If you have made genuine attempts to liquidate the value
of the property to pay the care fees but have been unable to, you should write
to Wiltshire Council’s Business Services Finance team, stating the position,
your attempts to raise finance and your case will be considered as an exception.
You will be advised in writing of the outcome. Should a decision be made to
offer a deferred payment as an exception, the normal deferred payment
procedure will apply, with a charge being placed on one or more of your
properties to secure the loan.
Q.
A.
What do I do if I have assets which I cannot convert to cash easily?
You are not eligible for a deferred payment and will have to find alternative ways
to fund your care or come to an agreement with the care provider to pay the
costs until the assets can be turned into cash.
Q.
Who will value my property?
A.
Upon receipt of the completed DPA1 application form, Wiltshire Council will instruct
our contracted property valuer, Spicerhaart, to contact you to arrange a convenient
date and time to value your property. An agent of Spicerhaart will therefore need to
contact you to arrange the valuation, which includes viewing the inside of the
property. We will write to you by letter or email to inform you that we have instructed
Spicerhaart to complete a property valuation. When requesting the valuation, we will
provide Spicerhaart with a ‘Letter of Authority’. Please ensure you ask to see this
letter of Authority and identification before the valuation commences.
Q.
A.
What interest rate will be applied to the DPA?
The interest rate applied is the set government “15-year average gilt yield”
plus 0.15%. The 15-year average gilt yield is set by the Office for Budget
Responsibility (OBR) twice a year on 1st January and 1st July each year. It is
reported in the OBR’s Economic and Fiscal Outlook report. When the rate
changes you will be informed of each change in the interest rate and the enw
rate will apply from either the 1st January or 1st July depending on when it is
changed by the OBR.
Q.
A.
How will interest be applied to the DPA?
Interest will be applied against each individual payment to the care provider on
the date it is made. The interest is charged on a compound basis (interest
charged on interest). Interest will be charged against the DPA until the debt is
repaid in full.
Q.
A.
Is there a different process if I decide to sell or not to sell my home?
No the process is the same, although if you decide to sell your home the DPA
would normally be for a shorter period of time.
Q.
A.
Does Wiltshire Council take any other forms of security into account?
generally, Wiltshire Council will only accept a first legal charge over a property
owned by the adult as it reduces the risk that the deferred payment will not be
repaid and Wiltshire council has a duty to protect public money. However you
can request that Wiltshire Council makes an exception to this rule. To do so,
you should write to Wiltshire Council’s Business Services Finance team, stating
your position and why you feel your case should be dealt with as an exception.
You will be advised in writing of the outcome. Should a decision be made to
offer a deferred payment as an exception, the normal deferred payment
procedure will apply, with security being sought by either a charge being placed
on your property or another form of security (e.g. a guarantor) to secure the
loan.
Q.
A.
Do I need to provide an ID check with my DPA1 application.
If you do not propose to instruct a solicitor to deal with the completion of your
DPA you will need to provide a completed ID1 form. This also applies where a
power of attorney or deputy is appointed along with a letter or report from a
medical doctor in respect of yourself as evidence that you lack capacity.
Where a power of attorney is appointed jointly and severally only the power of
attorney dealing with this matter needs to provide a completed form ID1.
Where a power of attorney is appointed jointly each of them will need to
provide a completed form ID1. The form and guidance on completing the
form can be found on the government website at
https://www.gov.uk/completing-forms-id1-and-id2
Q.
Can I rent my property?
A.
Yes you can. You must inform Wiltshire Council that you have taken the
decision to rent out your property. You will be required to provide verification of the
amount of the rental income you will receive, the rental start date and the costs
associated with renting the property. A new financial assessment will then be
completed by our Financial Assessments and Benefits Team, to reflect the increase
in your income, and you will be advised of your new client contribution and from which
date is applies. If you decide to rent out your property please contact the Financial
Assessment
and
Benefit
Team
on
01249
706755 or
email
FABTeamChippenham@wiltshire.gov.uk.
Q.
A.
Do I need to keep my property insured?
Yes. As a minimum your property should be insured for Buildings cover at the
full rebuild value. You also need to make arrangements for the property to be
adequately maintained.
Q.
A.
What do I do if I decide to sell my home after the DPA is in place?
Inform us of your decision and provide us with the solicitors contact details so
we can ask them for updates of the sale. When your property is sold we will
provide you or your solicitor a final deferred payment statement including
interest at the advised completion date.
Q.
What happens when my house sells or for any other reason my liquid
assets (not property) mean I am self-funding?
Wiltshire Council will assume that you will be paying for your own care in the
future, where required, and will cease payments to the care home and inform
them in writing, giving 30 days notice, that you will pay for the full cost of care
from the specified date. You must arrange to pay the care home directly from
that date. You must inform Wiltshire Council if your assets drop below the
upper capital limit giving three months notice of reaching this limit (funding will
not be backdated to before the date you asked Wiltshire Council for funding).
A.
Q.
Do I need to pay a client contribution if I have a DPA?
A.
Yes.
Q.
What is the Disposable Income Allowance and how does it apply?
During your initial financial assessment, all your regular income will be taken
into account. Everyone who receives care in a care home, must be left with a
minimum amount of £24.90 each week for living expenses, known as Personal
Expense Allowance (PEA), and this figure is deducted from your client
contribution rate as standard during your financial assessment. If you have a
Deferred Payment with Wiltshire Council, the PEA is replaced by the
Disposable Income Allowance (DIA), which is at a higher rate of £144.00 per
week. This is in recognition of the costs of running your property (i.e. insurance
and maintenance). Please note that your daily living costs also need to be taken
from your DIA. The maximum you can choose to retain is £144 per week, but
you can choose to retain any amount between £24.90 (for living costs) and
£144.00 per week. You should state the amount you wish to retain on the
DPA1 application form.
You will only be able to change the amount you retain once a year as part of
the annual financial re-assessment process each April. If you choose to take
more than the standard of £24.90 then the extra you retain will be deducted
from your weekly client contribution. If your deferred payment agreement ends
for any reason, then DIA will no longer be applicable and you will revert back to
the standard PEA rate of £24.90 and your contribution adjusted accordingly.
You will be informed by letter of the new rate of your client contribution if
applicable and the date this rate commences.
Please note: Reducing the amount of client contribution you pay towards
your care will increase the weekly amount charged against your property
under the Deferred Payment Agreement.
For example:
You have received a letter from our FAB team stating your weekly client
contribution will be £200 per week. The care costs are £800 per week. You
state on your DPA1 application form that you wish to retain £100 for DIA per
week. Your new client contribution will now be £124.90. This is calculated as
follows:
Client contribution
Add back PEA
Less DIA
New client contribution
£200.00
£24.90
-£100.00
£124.90
The weekly charge under the deferred payment agreement will change as
follows:
Old weekly charge
New weekly
to DPA
charge to DPA
Care costs per week
£800
£800
Less: Client Contribution
Weekly charge to DPA
-£200
£600
-£124.90
£675.10
Q.
A.
Q.
A.
Q.
A.
What should I do if I think the value of my asset plus my savings is
reaching the upper capital limit?
If you have a DPA you should contact the finance placements team on: email:
FinancePlacements@wiltshire.gov.uk, Telephone: 01225 718550. We may
need to ask for another valuation of your property and a financial assessment.
What should I do if there is a delay in getting the deferred payment in
place and the provider needs to be paid?
Wiltshire Council will not make any payments to your care provider, after the 12
week property disregard period if applicable. You should therefore contact your
provider and explain the situation and if necessary arrange credit with them or
arrange to pay the provider until the DPA is in place.
Do I get a refund of any payments I have made to the care provider whilst
the DPA is being set up?
Yes you will receive a refund but this will be from the care provider and you
should contact them to receive the refund. Wiltshire Council will backdate
payments to the DPA commencement date, which will be the day following the
12 week disregard, if applicable. Wiltshire Council will pay the care provider the
net amount due, backdated to the start date, therefore you should contact your
care provider for a refund of the net amount you have paid. Net amount means
the cost of the care less your assessed client contribution and top up if
applicable. Wiltshire Council will assume you have asked for the refund to be
paid to you when calculating the DPA balance.
Q.
A.
Do I have to have to have a deferred payment?
No it is your choice. You can choose to pay for your own care, for instance
through arranging a loan with a third party or selling your home. You should
be aware that if you plan to raise money against the value in your home in the
form of a loan you should be able to evidence this loan arrangement if you
should need to apply to Wiltshire Council to fund your care in the future. You
must inform Wiltshire Council if your assets drop below the upper capital limit
giving three months notice of reaching this limit (funding will not be backdated
to before the date you asked Wiltshire Council for funding).
Q.
A.
What should I do if my financial circumstances change?
You should telephone 0300 456 0111 and inform them of the change. A new
financial assessment will then be completed by our Financial Assessments and
Benefits Team, to reflect the increase in your income, and you will be advised
of your new client contribution and from which date is applies. Once this change
has been applied you will be advised of Wiltshire Council’s position with regard
to any agreements that you may have entered into and how you the change
has affected your status. Examples of where you financial circumstances
change include: You receive some money which takes you above the upper
capital limit; a qualifying person is no longer living in your home and your home
can no longer be disregarded in your financial assessment.
Q.
What checks do Wiltshire Council do regarding my property?
A.
We will check the land registry records for all of your last known addresses to
determine if you have or do own a property.
Q.
A.
What happens if the land registry check states I do not own a home?
We will write to you to inform you of this. This could happen because the
property was left to you in a will but the land registry has not been updated. If
the land registry needs updating it will be your responsibility to arrange for this
to completed before a deferred payment can be offered to you.
Q.
A.
Can I pay some or all of the Deferred Payment as I go along?
Yes you can, please email or phone the finance placements team on: Email:
FinancePlacements@wiltshire.gov.uk; Telephone: 01225 718550 if you wish to
make a payment. You will be provided with Wiltshire council’s bank details in
order to make the payment. Payments will be credited against your loan on the
day they are received into our bank and will reduce the principal amount due
and the interest charged, as well as increasing the duration of the deferred
payment as the equity limit will be reached at a later date. Please note that as
standard all fees and interest will be automatically added to your deferred
payment.
Q.
What happens if I feel my home should be disregarded after I have entered
into a DPA? (i.e. a potentially qualifying person moves into my property)
You should telephone 0300 456 0111 and inform them of the change. Wiltshire
Council’s legal team will determine if it is appropriate to consider if the change
represents a deliberate deprivation of assets. You will be informed of the
outcome of the decision in writing, which will include the next steps to be taken
by Wiltshire Council or yourself.
A.
Q.
A.
Will entering into a DPA have any effect on my benefits?
Yes. If you have entered into a DPA and it is not your intention to sell your
property during your lifetime any means test benefits, e.g. Income Support or
Pension Credit, will cease. This is because within the rules of these means
test benefits, your property is unable to be disregarded. If it is your intention to
put your property up for sale, you are able to retain your income support or
Pension Credit for a period of 26 weeks. You will be required to provide
verification of your intention to sell the property; this is usually in the form of
an estate agent’s valuation. A decision will then be made by an adjudication
officer from the Department for Work and Pensions. If you have entered into a
DPA you are entitled to retain your Attendance Allowance. This is because
government legislation states that whilst you are paying for your own care you
are entitled to receive Attendance Allowance. Your contribution towards your
care will be adjusted to reflect this. If at a later date you meet the criteria for
funding from the Local Authority, you Attendance Allowance will stop and your
contribution towards your care adjusted.
Q.
A.
Do you offer a DPA for other types of care?
Generally No. DPA’s are only offered for residential or nursing home
placements and for supported living.
Q.
A.
Q.
A.
What happens to the DPA amount if a third party funds some of my care,
for instance the Department of Health paying funded nursing care?
This will be deducted from the costs of the loan in the same way as you client
contribution or ‘top-up’ and will reduce the weekly cost of the deferred payment.
My property is overseas can I still have a DPA?
Generally No. DPA’s are only offered where we have adequate security in
place, which is a first charge on a property. If you have made genuine attempts
to liquidate the value of the property to pay the care fees but have been unable
to, you should write to Wiltshire Council’s Business Services Finance team,
stating the position, your attempts to raise finance and your case will be
considered as an exception. You will be advised in writing of the outcome.
Should a decision be made to offer a deferred payment as an exception, the
normal deferred payment procedure will apply, with a charge being placed on
one or more of your properties to secure the loan.