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Care and Support Charging and Financial Assessment Framework

10.3 Assessed charge and flexible disposable income allowance

During the course of the Deferred Payment Agreement (DPA) you will be assessed to make a financial charge based on your income and savings and assets other than your property. You are required to pay your assessed care charge on an on-going basis.

In calculating your assessed charge during your DPA, you are allowed to retain a weekly ‘disposable income allowance73 ’ up to the amount set by statute. This disposable income allowance is more than, and in place of, the ‘personal expense allowance’ so that you have enough money for your personal expenses and to maintain and insure the property.

You can choose to keep the maximum disposable income allowance or a lower amount – as you wish. In deciding whether to keep your full disposable income allowance, you should consider the potential effect on the level of your deferred debt as well as the flexibility you have.

If you wish to keep more than the personal expense allowance you will need to inform us in writing when you return the signed DPA documents, you will be entitled to keep the higher amount once the DPA has been registered with the Land Registry.

You should seek independent financial advice before making decisions about entering into a DPA.

  • 73Clause 9.48-9.50 of the Care and Support Statutory Guidance