These Regulations make provision concerning entering into deferred payment agreements by local authorities under section 6 of the Community Care and Health (Scotland) Act 2002 (asp 5). A local authority may enter into such an agreement where the conditions set out in regulation 2 are met.
The conditions are that–
an assessment of the person’s resources in accordance with the National Assistance (Assessment of Resources) Regulations 1992 (S.I. 1992/2977), disregarding the value of their home, shows that they have capital at or below the lower capital limit (currently £11,500);
the person does not wish to, or is unable to, sell their home;
the person will grant a standard security against their home;
the value of the person’s interest in their home is such that it will meet the local authority’s reasonable estimate of the amount that will become due under the deferred payment agreement; and
where the home is subject to other standard securities the person is, in the opinion of the local authority, able to continue to pay those and make the payments due to the local authority for the provision of residential accommodation.
Regulation 3 prevents the making of a deferred payment agreement (except in relation to additional payments) where the value of a person’s home is disregarded, other than for the purpose of making the agreement, when assessing their need for and ability to pay for residential accommodation.
Regulation 4 sets out how the amount that may be the subject of a deferred payment agreement is calculated. The amount deferred is the amount of the person’s payments that would be due to the local authority that are attributable to the value of the person’s home. Where a person makes additional payments, however, the local authority has discretion as to the relevant portion that may be deferred in respect of those payments. They may defer such amount, if any, as they consider appropriate up to the total of the additional payments.