Deferred Payment Agreements Practice Instructions Adults Services

Transcription

1 Deferred Payment Agreements Practice Instructions Adults Services This practice instruction (PI) should be read alongside: a) Achieving and Evidencing Good Practice PI b) Assessment PI c) Carers Assessment PI d) Advocacy PI e) Frameworki user guidance. This PI covers Deferred Payment Agreements. It is divided into the following sections: 1. What is a deferred payment agreement? 2. Who qualifies for a deferred payment agreement? 3. Automatic Property Disregards: 4. Choice of accommodation: 5. How to set up a deferred payment agreement. 6. Responsibilities: 7. Fees: 1. What is a deferred payment agreement? Under the Care Act 2014 all local authorities across England now have a legal duty to offer anyone meeting the clearly stated eligibility criteria with the option to enter into a deferred payment agreement in order to pay for their residential care costs. Deferred payment agreements are legal contracts which allow for care costs to be secured voluntarily against the person s own property. In effect, the person benefits from a loan on their payments for care and support in the care home and is protected from being forced to sell their home in their lifetime in order to meet those care home costs. The deferred payment arrangement allows Adults Services to place a first legal charge against the customer s property, by registration at the Land Registry, thus securing eventual repayment of the sum loaned to the customer. A deferred payment agreement leads to the County Council paying an agreed part of an individual s weekly care costs up to a maximum total amount. The maximum amount will usually be 80-90% of the value of the individual s equity in the property but this may vary on a case by case basis. Copyright 2015 West Sussex County Council / Version 1.2 / July2015 Page 1

2 Individuals with a deferred payment agreement may still pay a weekly contribution towards their care. The amount they are able to pay will be assessed based on their income, and other savings. The County Council will pay the part of the costs they can t afford through the deferred payment agreement until their home is sold. 2. Who qualifies for a deferred payment agreement? Individuals are eligible for a deferred payment agreement if: They live or are going to live full time in a residential care home; They own their own home (and its value is not disregarded see below); They have savings and investments less than 23,250 (excluding the value of their home or pension pot). For the first twelve weeks that any individual stays in a care home their property is disregarded from their financial assessment and Adults Services fund their stay there. It is during this period that you should offer them the option of a deferred payment agreement. If they choose to sell their property and do so sooner than the 12 weeks then they will begin funding their stay there from then. If they choose to have a deferred payment agreement then the Deferred Payment Team will aim to have the agreement finalised and signed by all parties by the end of the 12 weeks. Some people may decide that they do not wish to sell their property after the 12 weeks property disregard period. Alternatively, the property may already be on the market but the person is unable to secure a sale of the property immediately to meet the costs of residential or nursing home care. Under such circumstances, if the person requests assistance with payments of their fees from the county council, and this is accepted, they will be required to enter into a deferred payment agreement. The Care and Support (Deferred Payment) Regulations 2014 state that local authorities may also use their discretion to offer deferred payment agreements where assets other than property such as, for example, paintings or vintage cars - are available to provide adequate security. 3. Automatic Property Disregards: In some situations, the value of a property may be disregarded by the County Council for longer than the mandatory 12 week period. The disregards generally apply where the home is occupied (and was occupied prior to the customer entering into the care home) by one of the following: Copyright 2015 West Sussex County Council / Version 1.2 / July2015 Page 2

3 a partner or former partner (including civil partner) or spouse unless divorced or separated; an estranged or divorced partner who is also a lone parent; a relative who is aged 60+ years old; a relative who is a child of the resident aged under 18; or a relative who is incapacitated Circumstances where it may be unclear if the property should be disregarded is where the property is the only home of a relative aged over 60 or is incapacitated but has to live elsewhere for the purposes of their employment, for example as a member of the armed services or the diplomatic services. In these cases the property should still be disregarded because the qualifying resident is occupying it even though they are not physically present. If the spouse, relative or carer decides to leave the property then the disregard will cease from this date and the property will be taken into account in the financial assessment. Also if an individual owns more than one property then only one dwelling can benefit from any of the above property disregards. Commercial properties, park homes and caravans are also likely to be disregarded although will need to be assessed on a case by case basis by the deferred payments team. For advice, please find contact details for the Deferred Payments Team in section 5. The local authority also has the discretion to disregard property in special circumstances; for example if it is the sole residence of the care home resident s previous carer who gave up their own home and/or employment in order to care for them. Note: Discretionary property disregards are a separate matter and need to be sent to the Discretionary Property Disregard Panel on a case by case basis. Read the separate Practice Instruction for further details. 4. Choice of accommodation: West Sussex County Council will only offer deferred payment agreements to people entering into a permanent residential or nursing care home. Determining the most appropriate type of accommodation required will be made as part of the care and support planning process, and the choices available will only apply between providers of the same type. Adults Services is required to ensure that there is genuine choice and this means that there is at least one option available to the customer that is affordable within their personal budget and at least one option that is Copyright 2015 West Sussex County Council / Version 1.2 / July2015 Page 3

4 priced at WSCC s banded rate. This does not prohibit also identifying more expensive alternatives where a top-up may be required either by the person themselves or by a third party. A person who is unwilling to sign a deferred payment agreement that has been designed to meet mutual requirements and obligations will only be funded in a care home at the County Council s banded rates. If the person is already in a care home that is more expensive than the relevant banded rate, the person may need to be moved to a less expensive placement. 5. How to set up a deferred payment agreement: When carrying out an Assessment or Review/Reassessment for an individual who wishes to apply for a deferred payment agreement, choose the following two Outcomes on the Frameworki episode: Deferred Payment Sustainability Check Welfare Benefits Advisor Referral. A WBA will carry out a financial assessment for the individual which will be instrumental to the deferred payment agreement process. The following evidence will be required to assist in the financial assessment and for determination of the deferred payment agreement: Records of all income from pensions/ welfare benefits and/or other sources; Proof of ownership of the property (a first legal mortgage charge on the property on the Land Register or copies of deeds); Information about whether the property was purchased under the right to buy scheme and whether there are any penalties for selling a right to buy property within a given timescale; A current valuation of the property; Information about the current arrangements for buildings insurance on the property policy details, including value insured and policy renewal date; and For a nursing home-related placement, the level of funded nursing care to be taken into consideration. Other information may be required dependent on the circumstances of the individual s situation. Deferred Payment Sustainability Check requests are sent to the Deferred Payments Officer virtual worker; this is checked on a regular basis by a member of staff from the Deferred Payments Team. The Team will arrange a Land Registry search of the property and a property valuation Copyright 2015 West Sussex County Council / Version 1.2 / July2015 Page 4

5 and will gather information to make a recommendation to the Budget Holder on whether there is adequate security for a Deferred Payment to go ahead. If you have any questions regarding a Deferred Payment Sustainability Check, or whether a customer s property or other assets will be considered for a deferred payments agreement then contact the Deferred Payments Team: Telephone: External: Internal: DeferredPaymentsTeam@westsussex.gov.uk 6. Responsibilities: Social Care Workers are responsible for: Giving customers information and advice including the Paying for Care and Deferred Payments Leaflets and for signposting to Care Wise for independent financial advice; Offering the option of a Deferred Payment Agreement to appropriate customers; Informing customers of the reasons why a Deferred Payment has not been agreed; Taking action where a self-top-up is in place and Deferred Payments are not approved or are to cease when the debt reaches the equity in the property Welfare Benefits Advisors are responsible for: Identifying property ownership percentage and collecting evidence of any existing charge on the property; Identifying disposable income allowance that the customer wishes to retain; Collecting evidence of property insurance; Carrying out Financial Assessments and informing the customer of any charge; and Informing the WSCC Deferred Payments Officer that it is all complete via a FWi Outcome. The Deferred Payments Team is responsible for: Arranging Land Registry Checks; Completing Sustainability Calculations, checking for adequate security and making recommendations to Budget Holders Arranging property valuations; Monitoring deferred payment agreements and the debt accruing compared to the customer s equity in their property; Copyright 2015 West Sussex County Council / Version 1.2 / July2015 Page 5

6 Producing and sending six-monthly statements of deferred debt accrued Calculating and producing redemption statements on the sale of the property or death of the customer; and Referring back to the customer s allocated worker when the loan has reached 70% of their equity in the property. Budget Holders are responsible for: Approval of choice of accommodation; Consideration of the recommendations made by the deferred Payments officer and approval of any Deferred Payment Agreements via the Sustainability Calculator in FWi; Residential Finance Team are responsible for: Purchasing and paying care homes; Charging and billing customers; Sending the Deferred Payment Agreement to the customer for signature. 7. Fees: Under the Care Act local authorities can charge customers for the provision of a deferred payment agreement. West Sussex County Council charge: One off administration charge 495 Property valuation charge 250 Weekly on-going administration charge 7.15 p.w West Sussex County Council also charges compound interest on deferred payments, which is currently 2.65% from April 2015 and 2.45% from July The percentage chargeable will be reviewed every six months thereafter. Customers will receive statements on a 6 monthly basis advising how their interest is being calculated and the outstanding amount of deferred payments in relation to the equity in their property. These statements will be produced and sent out by the Deferred Payments Officer. Copyright 2015 West Sussex County Council / Version 1.2 / July2015 Page 6