Common use of Introduction and Purpose Clause in Contracts

Introduction and Purpose. 1.1 The establishment of the universal deferred payment scheme means that people should not be forced to sell their home in their lifetime to pay for their care. Deferring payment of care fees can help people to delay the need to sell their home and provide peace of mind during a time that can be challenging for them and their loved ones as they make the transition into care. 1.2 Sections 34 to 36 of the Care Act 2014 defines the requirement for councils to offer a Deferred Payment Agreement (DPA) enabling people to defer the sale of their main or only home where it is needed to fund and pay care fees. 1.3 The Care and Support (Deferred Payment) Regulations 2014, as amended by the Care and Support (Deferred Payment) (Amendment) Regulation(s) 2017 and the Care and Support Statutory Guidance, set out the legal framework and the Council’s responsibilities in greater detail. 1.4 The Council has a duty to offer a DPA to people who have Council arranged care and support, and also to people who arrange and pay for their own care. The person must have liquid assets less than, or equal to, the upper capital limit of £23,250. 1.5 A DPA can provide additional flexibility for when and how a person pays for their care and support. However, it must be made clear at the outset that the deferred amount is not written off and will have to be repaid by the individual, or a third party on their behalf, at a later date. The Council’s debt is secured by way of a legal charge on the property in question. 1.6 The deferral can last until death or may be used as a bridging loan to give time and flexibility to sell the home. 1.7 The Council has a duty to provide clear and easy to understand information and advice explaining how a DPA works enabling people to make well-informed choices and the options for paying for care. 1.8 This policy sets out the Council’s Deferred Payment scheme (for the administration and implementation of DPAs), including type of DPA, eligibility for a DPA, and the Council’s obligations in terms of the administration. 1.9 The policy should be read with the Council’s Residential Care Charging Policy.