11.2 The application process
1. Information given to you or your financial representative about Interim Funding
You, or the person identified as taking forward an application to legally manage the financial affairs of the person entering a care home (‘the financial representative'), will be sent:
- Information about care home charges
- The financial assessment process
- Information about Deferred Payment Agreements (DPAs) (if there is property)
- Details of Interim Funding arrangements, including interest charged on accrued care home costs
- Information about how to obtain Interim Funding
- How to access independent financial and legal advice
We will carry out a Land Registry search where relevant.
2. Financial representative requests Interim Funding (within 2 weeks)
If the you, or your financial representative, is unable to make financial arrangements immediately for the care home fees, the Council can consider Interim Funding. The Council will require conformation of the following:
- That they complete and return the Interim Funding application form within 2 weeks of the date the application form was posted to you.
- That they are taking steps to become legally appointed to deal with the finances and what steps have been taken so far (such as providing confirmation of an application to the Court of protection (COP3, COP1 and COP1A forms) or confirmation that a conveyancing Solicitor has been instructed to undertake first registration of the property).
- In the cases of property ownership, what are their intended plans for the property and long term funding arrangements.
- Undertake to keep the Council informed of the process to either settle outstanding charges (for example, sale of the property) or agree to a DPA and legal charge, or a combination of these if appropriate, once the legal power to act is in place.
- Provide full information on property ownership and provide reliable valuation of the property.
3. Considering the Interim Funding request and making a decision (within 10 days)
On receipt of the above information the Council will carry out an assessment of the proposed arrangements and decide whether they are acceptable, sustainable, and provide sufficient guarantee to protect the Council’s financial position. The factors which will be considered when assessing this include:
- The likely period the Interim Funding will be needed
- The amount that could be paid from the resident’s state benefits by the financial representative appointed by the Department for Work and Pensions to manage the resident’s benefits
- The financial representative’s intentions for longer-term funding arrangements once they are appointed deputy for the resident
- What alternative funding arrangements have already been considered by the financial representative
- Evidence that the financial representative has obtained, or is actively seeking, independent financial and legal advice about long term care funding arrangements for the resident
The Council will decide whether the financial representative’s request for Interim Funding for the resident meets the criteria set out in this Interim Funding Policy – the Adult Social Care Commissioner will review the Interim Funding application to verify that the proposed Interim Funding and the plans to be able to legally act do not place the Council at undue risk, while taking account of the Council’s responsibility to safeguard the individual in need of care.
If the application is accepted, we will write to the financial representative to confirm our decision. We will send 2 copies of the letter, one of which will need to be signed and returned by the financial representative to confirm acceptance of the Interim Funding arrangement. This letter will also state:
- Any conditions attached to the Interim Funding (for example, insurance of the property)
- The interest rate that will be applied to the accrued debt through the Interim Funding arrangement
- Administration fees applied for monitoring the accrued debt through the Interim Funding arrangement
- When and how often we will send statements of the accrued debt to the financial representative
- Any benefits to be claimed by the financial representative on behalf of the resident and how to do this
- The assessed weekly charge which the financial representative will need to pay on an on-going basis (for example, from state benefits)
- The agreed level of your weekly disposable income allowance (if relevant), the invoicing arrangements, and how to pay the ongoing weekly assessed charge
- That failure to maintain the assessed weekly charge from available income could result in the Interim Funding arrangement being terminated
- The weekly amount that is agreed to be accrued under the Interim Funding arrangement and any other costs agreed to be accrued under the arrangement
- The Councils expectations of the financial representative to keep the Council updated with progress of their application to act for the resident
- The Councils expectations of the financial representative to discharge the accrued debt or enter into a DPA with the Council when they have been legally appointed to act for the resident
- That if a DPA application is anticipated that where there are joint owners of a property all owners must consent to the placing of a legal charge against the property
If the application is refused the Council will tell the financial representative the reason/s and we will write to them to confirm this decision. Our letter will explain:
- The reason(s) for refusing the application
- The date from which the financial representative will need to make arrangements on the resident’s behalf for care funding (usually the end of a 12-week property disregard period)
- How to appeal our decision about Interim Funding
- How to make a complaint
- That we will tell the care accommodation provider the date the Council will stop funding the care costs
4. Agreed Interim Funding arrangements starts: setting up invoicing and monitoring arrangements to track the accruing costs and interest
The Care Finance Officer will carry out periodic checks on the Interim Funding arrangement and if no update has been received for three months, we will contact the financial representative to request an update.
Once the financial representative has obtained the legal power to act for the resident and provides evidence to us, the Care Finance Officer will write to the financial representative to confirm that the Interim Funding will cease and either the accrued debt (including interest and any administration charges) will need to be paid in full, or the financial representative will need to enter into a DPA on the resident’s behalf, secured by a legal charge against the resident’s property.
Interim Funding is provided subject to the following conditions:
- You or the person acting for you will return the Interim Funding application form with 2 weeks of receipt of the application form
- You or the person acting for you will return the Interim Funding application form with 2 weeks of receipt of the application form
- The portion of the charge relating to your state benefits will be paid promptly by your financial representative once they have been appointed to deal with your state benefits
- Once legal power to act is granted, the Interim Funding agreement will either be converted to a DPA or the balance of accrued charges including interest and administration charges is paid in full
If you fail to comply with the above conditions the Council will not provide Interim Funding and can, at their discretion, refuse any further application for interim funding.
The interest charges will be the same as for DPA. The annual administration fee for monitoring the Interim Funding arrangements will be the same as for DPAs.