Q&As

Can a property in Scotland be accepted as security for a Deferred Payment Agreement under the Care Act 2014?

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Published on LexisPSL on 08/11/2016

The following Local Government Q&A provides comprehensive and up to date legal information covering:

  • Can a property in Scotland be accepted as security for a Deferred Payment Agreement under the Care Act 2014?
  • Who is eligible for a DPA?
  • Adequate security

For the purposes of this Q&A we have limited our research to cover whether it is theoretically possible to secure a Deferred Payment Agreement (DPA) on an asset out of the jurisdiction rather than the practical considerations of how this could be achieved.

The legislative framework for a local authority to enter into DPA is set out within sections 34 and 35 of the Care Act 2014 (CA 2014) and the Care and Support (Deferred Payment) Regulations 2014, SI 2014/2671.

Who is eligible for a DPA?

Pursuant to SI 2014/2671, a local authority is either obliged to enter into a DPA (SI 2014/2671, reg 2) or have a discretion to enter into one (SI 2014/2671, reg 3).

The local authority is obliged to do so where the individual is, is going to be, or the local authority is of the view that the individual would be supported by the provision of accommodation in a care home pursuant to CA 2014, ss 19(1)–(2) and the further provisions of SI 2014/2671, reg 2 are met

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