Families are being forced to sell their loved ones’ houses in order to pay for care facility fees.
Families across Merseyside are being forced to sell their loved ones’ houses in order to pay off debts owed to care homes.
Families throughout the region owe councils about £6 million in care facility costs, according to new findings.
Despite a commitment in the government’s 2019 manifesto that no one needing care should be forced to sell their house to pay for it, there has been no change in the legislation to safeguard people, and one Merseyside councillor has called on the government to get its act together.
After providing a place for a homeless woman to stay, he shattered her jaw.
A delayed payment agreement (DPA) is a contract in which the local government covers the individual’s care bills and the individual can defer repayment until they sell their house or die.
According to NHS Digital, there were roughly 210 DPAs in effect across Merseyside on March 31, 2020, with a total value of £5.9 million.
Each borough has a certain number of DPAs.
There are 120 DPAs outstanding in St Helens, up from roughly 110 at the same time last year.
The debt has been reduced from £2.8 million to £2.4 million.
In March 2020, there were roughly 20 DPAs in Liverpool, worth £700,000, compared to 25 and £480,000 the year before.
In addition, there were roughly 25 worth £1.2 million in Knowsley, up from 25 and £770,000 a year before, and around 30 owed £730,000 in Wirral, up from 25 and £640,000.
In Sefton, there are roughly 15 properties worth £890,000, down from around 35 and £1.4 million previously.
Charges for loans
The sum payable does not simply comprise the cost of care; most councils also charge fees and interest for taking out these loans.
While there is no admin fee and no interest on the Wirral, the interest rate in Liverpool was 1.15 percent, 1.05 percent in Sefton, and 1.45 percent in Knowsley and St Helens. The interest rate in Liverpool is 0.75 percent as of July 1, 2021.
Admin fees range from £360 in St Helens to £1,185 in Sefton across the whole of Merseyside.
Opinions of the Council
All five councils in Merseyside were contacted for their opinions on deferred payment agreements.
Liverpool City Council did not respond to a request for comment. Wirral and Sefton did not respond to our request for comment. Knowsley and St Helens, on the other hand, came through. “The summary has come to an end.”