Cost of care services

Simple guidance on what you might pay for care, the support available with costs, when Staffordshire County Council will help pay and deferred payment agreements.

Contents

Deferred Payment Agreement

If you move into a care home and most of your money is tied up in your home, you may not have to sell it straight away. A Deferred Payment Agreement (DPA) lets us help pay some of your care costs now and recover the money later, usually when your home is sold or from your estate.

How a Deferred Payment Agreement works

  • For the first 12 weeks in a care home, your home is not counted in your financial assessment (this is called the 12‑week property disregard).
  • After that, if you own your home and have less than £23,250 in savings (not including your property), you may be able to defer some or all of your care costs.
  • We place a legal charge on your property (similar to a mortgage) to secure the agreement.
  • You still pay what you can from your income and savings.
  • Any remaining care costs are added to your DPA balance instead of needing to be paid straight away.

Disposable income and protected allowances

When you have a Deferred Payment Agreement, we make sure you are left with enough money for everyday living costs. Some parts of your income are protected and cannot be used to pay for care.

What we mean by disposable income

Disposable income is the money you have left from your regular income, such as pensions or benefits, after protected amounts are taken into account. We only charge what you can afford once these protections are applied.

Personal Expenses Allowance (PEA)

You will always be left with a Personal Expenses Allowance. This is a minimum weekly amount for personal spending, such as:

  • Clothes and toiletries
  • Haircuts
  • Social activities and hobbies

This allowance is ring‑fenced, which means it cannot be used to pay for care costs and is always protected in your financial assessment.

This allowance applies to everyone with a Deferred Payment Agreement.

Disposable Income Allowance (DIA)

If you have a Deferred Payment Agreement, you have the right to keep an additional amount of income on top of the Personal Expenses Allowance.

This allowance is not given automatically and must be requested.

The maximum Disposable Income Allowance is currently £144. The amount agreed will depend on your individual circumstances.

How we protect your income

When we calculate your care charges under a DPA, we:

  • Protect your Personal Expenses Allowance
  • Protect any other income that is legally protected or agreed as part of your assessment
  • Only charge what you can afford after these amounts

If there is still a shortfall, it is deferred and added to your DPA balance, rather than being taken from your everyday living money.

Other important things to know

  • The money is not written off – it must be repaid later.
  • Interest and administration fees apply. We will explain the rates before you sign anything.
  • You can rent out your home to help reduce the amount you owe.
  • You must keep the property insured and maintained.
  • We strongly recommend getting independent financial advice before deciding.

When the money is repaid

The deferred amount is usually repaid:

  • When the property is sold, or
  • Within 90 days of death, from the estate

How to apply

We will discuss a Deferred Payment Agreement with you as part of your financial assessment if you may be eligible.

To start the process, contact Staffordshire Cares on 0300 111 8010.