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What is the Deferred Payment Scheme?

If you are a home owner moving to residential care this scheme is designed to assist you with the payment of your care home fees. In return for a legal charge on your property, Bournemouth Borough Council will pay agreed care costs which will be repaid when the property is sold.

This arrangement is similar to an interest-free loan for the period of the deferred payment agreement.

Who is the Scheme for? 

It is for home owners moving permanently into residential care funded by the local authority who either:

• do no wish to sell their home OR
• are unable to sell their home quickly enough to pay for their care.

How do I become eligible for the scheme?

To join the scheme you must

• have been assessed by Social Services as requiring residential or nursing care
• be eligible for funding from the Council
• have a beneficial interest in a property you have been living in which is worth enough to cover the period of the placement
• pay a weekly contribution based on an assessment of income and assets.

How does the scheme work?

For the first twelve weeks your property is disregarded. After this time you will need to agree to Bournemouth Borough Council placing a legal charge on your property. In return the Council will pay the balance of care costs up to an agreed rate that would have been met from the sale of the property.

After this twelve week period you could also use the scheme to pay for more expensive accommodation depending on the net value of your property.

After this twelve week period you could also use the scheme to payfor more expensive accommodation depending on the net value of your property.

When must the money be repaid?

The money must be repaid either:

• when the property has been sold OR
• when you terminate the agreement OR
• within 56 days of your death

Interest will be charged if the debt is not repaid at the end of the agreed period.

How do I apply to join the Deferred Payment Scheme?

If you are planning to live in a residential home permanently following a Social Services assessment and are thinking about deferred payments you should discuss it with your care manager. If you decide to go ahead, the care manager will notify the Council's Social Services Financial Assessment Team.

A contract letter and terms of the agreement will then be sent to you which will indicate the assessed payments to be made under the scheme and the terms of the agreement.

What if I already live in residential care?

If you have already moved into residential care but have only just head of the Deferred Payment Scheme you may still be eligible. To find out more contact: