Deferred payment agreements
In 2015 deferred payment agreements (DPAs) were introduced by the Government, its intended to ensure that people weren't forced to sell their home to pay for their care home bills1. In Northern Ireland, there is no formal deferred payment system, but it might still be available, your client can contact their View - Health and Social Care Trust.
Someone who can’t pay their long-term care fees can apply for a DPA, which is a long-term loan from their local authority that is secured against their home. It means the local authority will help to pay the care costs until the property is sold or the homeowner dies. At this point, the loan is repaid. The local authority must be paid within 90 days of the date of death or the date the property or asset is sold or disposed, whichever is sooner.
The Disposable Income Allowance
Anyone entering a DPA is still allowed to keep some income to pay for any costs they may incur maintaining the home. This is called the Disposable Income Allowance (DIA) and is set at £144 a week.
Our sources
Information researched and accurate as of February 2020. Not to be relied upon by advisers or their clients.