A PENSIONERS’ group has hit out at new charges for people deferring payment for care in old age.

Under new rules agreed at Oxfordshire County Council yesterday, anyone who defers payment for care will be charged a one-off fee of £680 and an interest rate of 2.6 per cent on the cost of care.

It comes as new legislation is introduced allowing people to settle the full cost of care once they die – deferring payment for care, instead of paying as they go.

But the charge for deferring payment, which the county council has set at the maximum allowed by the Government, has been slammed by one older people’s organisation.

Former county planner and secretary of the Oxfordshire Pensioner’s Action Group (OXPAG), 86-year-old Michael Hugh-Jones said: “It’s deplorable and it will be the poorest pensioners, who are worst equipped, that will be hit.

“It is unlikely that anything can be done about this, but what I ask for is transparency. Pensioners need to be told about these changes.

“It is very difficult to understand what people may or may not be entitled to.”

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The county council set the interest rate for those deferring to 2.6 per cent, but this rate could increase as central government will review the interest rate increase every six months. The authority will also charge people who pay the full cost of care upfront a oneoff fee for acting as a “broker” to care homes.

The council will charge £150 for negotiating care with a provider, or £500 if it also manages the person’s care, such as processing payments and monitoring care quality.

The £680 fee applies to people who choose to pay for their care through “deferred payment agreements”, which will be made universally available from April 1 under the Care Act 2014.

This allows elderly people to pay for their care once they die, meaning the person is not forced to sell their home to settle care bills.

Chairwoman of the Older People’s Management Group, Judith Heathcoat, would not comment on the additional costs for people paying for their own care.

But the Oxfordshire county councillor for Faringdon said: “We will continue to meet our statutory obligations and eligibility criteria.”

Under the new law, the county council will have to offer deferred payment agreements to anyone that wants them.

County councillor for Witney South and Central, Laura Price, said that the council were powerless and have “got to comply” with the Care Act 2014.

The member of the Joint Health Overview and Scrutiny Committee said: “I think in all honesty the Care Act is national and there isn’t much the county can do.

“We won’t know the implications for normal people until the Care Act is implemented, but there is little that the county council can do. Central government put this forward as part of the solution to stop people racking up massive debt to pay for their care. But it could mean people are paying even more if more people take up this deferred payment agreement.”