The Care Act 2014 (sections 34 and 35) requires local authorities to offer Deferred Payments Agreements to allow persons to defer the sale of their home where it is needed to fund care fees. The Care and Support (Deferred Payment) Regulations 2014 set out the legal framework and local authorities responsibilities in greater detail. The new legal duties are effective from 1 April 2015.

The regulations require local authorities to offer deferred payments to people meeting certain eligibility criteria (see section 7 below). These agreements can be retained until the person passes away (with the amount repayable from their estate) but can also be offered to persons who decide to sell their home whilst still alive (the deferred payment providing “bridging finance”).