Draft Charging Policy for Social Care Services

Deferred payments

22. Deferred payments

Where a person with care and support needs has a property that is included in their financial assessment, then in certain circumstances they can enter into a deferred payment agreement with Carmarthenshire. Where a deferred payment is agreed then it will enable them to defer or delay paying some or all of their care costs, including Additional Cost contributions until a later date, so they are not required to sell their property immediately upon entering a care home. This arrangement can provide additional flexibility of how and when the person with care and support needs pays their care costs.

The amount that can be deferred each week will be determined from the financial assessment. Carmarthenshire will defer care and support charges which are more than the income that the person is entitled to, including rental income where the property has been rented by prior agreement with Carmarthenshire.

Carmarthenshire will obtain a professional valuation of a property and will defer an amount up to the value of the person’s interest in a property less an allowance for selling costs as set out in the legislation. Where appropriate the property will be revalued periodically for the purposes of determining the amount which can be deferred.

Persons seeking or being offered deferred payments will be advised to seek independent financial and or legal advice to ensure that persons or their representatives understand the terms of a deferred payment agreement and the commitment they are agreeing to.

Carmarthenshire will charge interest on sums deferred at the interest rates set within the legislation. Interest will be chargeable from the 91st day following the end of the Deferred Payment Agreement.

The person with care and support needs will be liable for any costs incurred by them e.g. legal fees, financial advice, etc. to enable them to enter into the deferred payment agreement. These costs will be in addition to any fees and charges levied by the local authority. Carmarthenshire will apply a flat rate charge for setting up a Deferred Payment Agreement.

The legislation sets out in detail the eligibility criteria that needs to be met, for a person to enter in to a deferred payment agreement and Carmarthenshire will apply that eligibility criteria as set out in the legislation.

In agreeing to enter into a deferred payment agreement Carmarthenshire will directly contract for the placement or must do so with a partner agency. Deferred payment agreements will not be available for people with care and support needs who contract for themselves or through a 3rd party or any other agency.

Where Carmarthenshire is unable to create a charge that takes priority over, and ranking before any other interest or charge on the property then Carmarthenshire may consider a lower ranking charge where it is satisfied that the debt that may accrue is adequately secured, but this is at the sole discretion of Carmarthenshire. Interest will be chargeable at the general rate from the 91st day following the end of the care home placement. Carmarthenshire will apply a flat rate charge for this arrangement.

Where for any reason Carmarthenshire cannot create a charge over the property which the person occupies, or used to occupy, as their main or only home and it is satisfied that the asset(s) offered as security as an alternative are sufficient to meet the value of the debt accrued for the time the person with care and support needs will be in the care home, then Carmarthenshire may at its sole discretion consider applying a charge to an alternative property or land. Interest will be chargeable at the general rate from the 91st day following the end of the care home placement. Carmarthenshire will apply a flat rate charge for this arrangement.
Where a person with care and support needs does not meet the requirements of the scheme then a request for a deferred payment will be refused.

Carmarthenshire can refuse to defer any further care costs even where a deferred payment agreement is in place and in certain circumstances it will do so. Where such a decision is implemented, it will be in accordance with the legislation and/or the terms and conditions of the deferred payment agreement and Carmarthenshire will explain the basis of its decision.