Deferred Payment scheme for care home funding

Discussion in 'Legal and financial issues' started by Dean channon, Dec 2, 2015.

  1. Dean channon

    Dean channon Registered User

    Dec 2, 2015
    2
    Can anybody explain to me how the deferred payment scheme works, because my local authority don't seem to be able to. My mother has recently gone into a nursing home, I have taken out deferred payment with the county council, but can they explain the calculations - absolutely not. Firstly they produce 2 entirely different figures for the weekly payment. Then they tell me that my mother loses her attendance allowance but DWP say she doesn't, and finally out of the £522 payment a week they say they are deferring £341 and I fund the rest, but where does the pension come into this equation.
     
  2. Pete R

    Pete R Registered User

    Jul 26, 2014
    2,046
    Staffs
    I/my Mom has one with the Local Authority (LA) and all has been well explained so far, which is about the only good thing I have to say about them so can understand your frustration of dealing with an LA.


    It has hard to give a definitive answer to your question as a Deferred Payment Agreement (DPA) is different in every case. Have you asked for any increase for any maintenance/bills on the property? Are there any set up charges or interest payments to be made?

    As your Mother is self funding then she can keep her Attendance Allowance (AA). Both this and any pension she receives helps pay the weekly fee. How that is paid to the Care Home (CH) varies but I assume that where you say "I fund the rest" that is what you mean, you pay it on your Mother's behalf. So both her pension and AA come off the total cost of £522/week and in most circumstances then the rest is deferred.

    It is strongly advised that anyone thinking of a DPA get financial advice.

    Hope that helps a little.
    :)
     
  3. Dean channon

    Dean channon Registered User

    Dec 2, 2015
    2
    Thanks Pete, it sort of explains it I guess, but nowhere has the LA mentioned the pension, and by the looks of the calculations I can't see where the pension fits into it. Unless they have taken it off before they quoted me £522. Even in that case they got it wrong because they ommitted to take into consideration the AA.
     
  4. Pete R

    Pete R Registered User

    Jul 26, 2014
    2,046
    Staffs
    Hi Dean, unfortunately your latest post has made it even more confusing to me. (not difficult :))

    Your Mother would have had a financial assessment. That should list all her income including pensions and benefits, all her savings and the estimated value of the house. Do you have this?

    If you do not know the actual cost of the Nursing Home you should find out from the home. Only then can you attempt to work out how much the DPA should be for. Do you/your Mother have a contract with them? If the LA has arranged the contract then ask them.

    It may well be worth taking all the documents to the Citizens advice or similar so they can go through it with you.

    You/your Mother should not be signing anything till you understand the amounts involved including the set up fees and interest charges.

    :)
     
  5. realist1234

    realist1234 Registered User

    Oct 30, 2014
    108
    Pl ensure any 'top-up' amount is included in your Deferred Payments Agreement - this is allowed under the Crag guidance. I understand this means once the property is sold, you would receive back any top-up amount you would have paid whilst waiting for the house to be sold (as your mum would have been self-funding and paying the top-up amount herself if her house had been sold at the very start of her entering a CH) . But perhaps one of the knowledgeable Administrators could confirm my understanding?



     
  6. nitram

    nitram Registered User

    Apr 6, 2011
    18,625
    Male
    North Manchester
    "I understand this means once the property is sold, you would receive back any top-up amount you would have paid whilst waiting for the house to be sold..."

    By agreement with the LA first party top ups can be included in the care costs and as such are paid to the LA at the termination of the deferred payment agreement.

    If they were paid to the resident it would mean that the LA paid twice, first to the care home and again to the resident.
     

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