You can choose to contribute more to the cost of your care and keep less than £144 a week if you prefer. This would reduce the amount you owe to the local authority through the payment deferral agreement. In the event of refusal of other deferred payments on the basis of an agreement on deferred payments, the local authority should notify at least thirty days in advance that further deferrals will be suspended; and must give the person an indication of how their care costs will be covered in the future. Depending on his circumstances, the person can either receive help from the local authorities to cover the cost of his care, or assume his costs from his income and property. The money you owe for the payment deferral contract, including interest and management fees, must be repaid when you sell your home. If the person has additional savings, they may want to contribute to the local authority to cover the costs of their care, which means that the amount of the deferred payment is lower. However, the local authority may not require a person who has entered into a payment deferral agreement to contribute to his savings if he does not wish to do so. If the money is not repaid on time at the end of the agreement, the local authority can calculate additional interest until the debt is repaid. There may also be on-going administrative costs plus interest. If the person has sold their home or died, there is a time limit to pay the deferred payment agreement in full. It`s either: in Scotland, there are no interest charges while you have the payment deferral agreement. Interest is only collected if the contract is terminated by the person or from 56 days after his death. Interest should then be calculated at a “reasonable rate” set by the local authority.
Payments should be deferred to the amount of the personal budget (or what is the likely amount if people have not been assessed by the local authority). If the person wishes to carry forward less than the amount of the personal budget, this can be agreed, but he must be able to pay the difference between what is carried forward and the amount of the personal budget.. . .