§ Mr. KidneyTo ask the Secretary of State for Health if he will make a statement on the arrangements that he 817W intends to put in place from October to ensure homeowners will no longer be required to sell their homes to pay for their long-term care. [2540]
§ Jacqui SmithI apologise to my hon. Friend for the delay in responding to this question. I refer my hon. Friend to the reply that my right hon. Friend the Secretary of State gave my hon. Friend the Member for Blackpool, North and Fleetwood (Mrs. Humble) on 5 March 2002,Official Report, column 192W.
Deferred payments arrangements came into force on 1 October 2001. Under this power, on admission to permanent residential accommodation, councils can agree to defer the contributions to care costs that residents would normally make from the sale of their home. Once the home is sold, the resident or their estate repays the council. If this repayment is made within 56 days, interest is not charged.
Councils have been given a grant to cover the cost of agreeing to deferred payments.