Paying for care

Deferred Payment Scheme

An agreement to avoid selling the house up-front to pay for care home fees

Shetland Islands Council allows people who take up permanent residence in a care home to retain their property, with repayment of the debt being secured from the resident’s estate, by placing a charging order on the property.

Deferred payments gives residents the option to enter into an agreement voluntarily rather than to have a charging order imposed.

The accrued debt would be settled from the resident’s estate, or sooner if the property is sold.

The Deferred Payments Scheme means entering into a legal agreement to have part of the fees paid by Shetland Islands Council.

If a resident chooses to opt for a deferred payment, he/she would be responsible for obtaining a valuation of the property.


Deferred Payments form part of the financial assessment for permanent residents who own property. This assessment is undertaken by the Community Care Financial Assessment Officer.

Eligibility criteria for Deferred Payment

Agreements is restricted to any person who:

  • has been assessed as in need of a place in a care home, and for whom the Shetland Islands Council has agreed to provide or has secured the provision of a residential place.
  • has capital at or below the lower capital limit (£18,500 in 2022/23), when his/her resources are assessed via a financial assessment under the National Assistance (Assessment of Resources) Regulations 1992 (as amended) but excluding his/her home from that assessment.
  • would not normally have his/her home disregarded from such a financial assessment.
  • does not wish to sell his/her home, or is unable to sell it quickly enough to pay for care home fees.
  • owns his/her home and can grant the authority a standard security against this property.
  • has a residence which is already subject to one or more standard securities but Shetland Islands Council is satisfied that the person has sufficient income to meet the costs of existing securities, while at the same time making the assessed contribution to care costs

To discuss please contact us on 01595 743826

Further information on our Deferred Payments Scheme leaflet