If you own property
Financing your care can be quite complex. Everybody’s situation is different and there is not a ‘one size fits all’ solution. Therefore, you should speak to Stockport Council about how moving into a care home will affect you financially. You may also choose to get independent financial advice.
We will carry out a financial assessment to determine how much you have to pay towards your care home fees. This assessment will look at any money you have coming in and what savings you have. If you own a property this will normally be included in such an assessment. In some cases you may be required to sell your home to meet the costs of your nursing or residential care. But the information below tells you about circumstances where the value of your home would not been taken into account (Property Disregard) and a scheme that allows you to delay repaying care home costs until you decide to sell your home (Deferred Payment Agreement)
Under certain circumstances, the value of your house will not be included as part of the financial assessment to determine how much you will pay towards your care home costs. This is called a 'Property Disregard'.
If your stay in a care home is temporary, then the value of your house will not be included in the financial assessment.
If you are moving into a care home permanently, then we will not include the value of your property if:
- Your spouse or partner continues to live in the property;
- A family member over the age of 60 continues to live there;
- A family member is under 60 years of age and receives certain types of disability allowances lives in the property;
- You have a child under the age of 18 and they live in the property;
- Additional exceptional circumstances apply.
Otherwise, we will take the value of your property into consideration. Please contact us if you have concerns or would like advice and guidance.
The 12-week Property Disregard Scheme
For the first 12 weeks of your care, we will not take your property into consideration and you will not have to make any decisions about selling your home. Instead, you will only be asked to pay a contribution towards your care home fees and we will pay the remainder. We will calculate the amount you pay, dependent on your income and savings.
Please note, if you have savings of more than £23,250 you will be required to pay the full cost of your care. If you sell your home during this 12 week window you will also be required to meet your care costs.
Deferred Payment Scheme (DPA)
A deferred payment agreement is an arrangement with the Council that may enable you to use your home to pay for your care home costs. If you are eligible for a Deferred Payment, we will help to pay your care home bills on your behalf, and you can delay repaying us until a suitable time, or we can loan you the money to pay to the care home in certain circumstances.
You should be entitled to a DPA if:
- You have eligible care and support needs
- You are receiving care in a care home (or you are going to move into one soon)
- You own your own home (unless your partner or certain others live there)
- You have savings and investments of less than £23,250 (not including the value of your home or pension pot)
If you meet these criteria, we can set up an agreement that allows you to use the value of your home as security to fund home care costs, and to delay repayment until a more suitable time or to loan you the money to pay some of your care costs. As normal, you will be required to pay a contribution towards your care costs but the value of your property will not be included towards the calculation. The council will pay the rest of your fees, or loan you this amount. The council will keep a track of what you would have paid, or what has been loaned, if your property was counted towards your capital. This is then to be paid in full when you finally decide to sell the property, or when you die and it becomes part of your estate. The Council will charge an administrative fee for setting up and maintaining a deferred payment arrangement and interest will be added to the ongoing deferred debt or loan.
A Deferred Payment Scheme is only one way to pay for your care. Before agreeing to a deferred payment scheme we recommend you find out more about the options available by speaking to an independent financial adviser, or seek advice from an independent organisation.
You can use our Deferred Payments Calculator to see whether you would be eligible for a Deferred Payment and roughly how much you would have to contribute towards the cost of your care under the scheme.
What happens if my care home is more expensive than the council is prepared to pay for?
You will be required to pay a top up fee if your choice of care home exceeds the cost the council is willing to pay. In certain circumstances you can pay the money yourself, or it can be paid for by a friend, relative or by a charity. You can also use a deferred payment scheme to pay this top up, but your property should have enough equity in it to pay the additional cost.
Before electing for a more expensive care home you should speak to a Social Worker who will be able to give you further advice. Remember, if you are unable to meet the top up payments it is likely you will have to move to another home that costs less. This could be traumatic for you and cause you distress.
Further information is available in our 'Choice of accommodation and top ups' leaflet.
Finding out how much you might have to pay
To work out how much you have to pay, we will assess your finances with you. You can use our online care costs calculator to help to you to get an idea of what your care costs might be based on your income. Follow the link below.
To see if you qualify for any financial help, we will help you to complete a financial assessment form. You can complete this assessment yourself using the online form - Follow the link below.
Stockport Council (Social Care Charges Team)
Address: Second Floor, Stopford House, Piccadilly, Stockport SK1 3XE
Phone: 0161 474 4781