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What is the 12-week property disregard?
Answer first: The 12-week property disregard is a Care Act 2014 rule that excludes the value of your home from the care home means test for 12 weeks after a permanent placement begins. It buys families time to arrange property finance — sell, rent, defer, or apply for NHS Continuing Healthcare — before the property is counted as capital.
When someone moves permanently into a care home, the local authority carries out a financial assessment (means test) to work out how much they should contribute towards the cost of their care. For most people, their home is their largest asset — and if its value is included, their total assets will almost certainly exceed the upper capital limit of £23,250 (in England), making them a full self-funder.
The 12-week property disregard is a legal provision under Care Act 2014, section 14 and Schedule 2, paragraph 4(2) of the Care and Support (Charging and Assessment of Resources) Regulations 2014. It temporarily excludes the value of your home from the financial assessment. For the first 12 weeks after you enter a care home permanently, the local authority must ignore the value of your property when calculating what you can afford. The relevant statutory guidance is set out in Annex B, paragraphs 34 to 46 of the Care and Support Statutory Guidance.
The purpose is straightforward: to give you and your family time to decide what to do with the property. Selling a home is a major decision, and 12 weeks of breathing space prevents families from being forced into a fire sale at a time when they are already dealing with the stress of a loved one moving into residential care.
Key point: The 12-week disregard is not optional — where the conditions are met, the local authority must apply it. If they fail to offer it, challenge in writing citing Care Act 2014 s.14, Schedule 2 para 4(2) of the 2014 Regulations, and Annex B paragraph 35 of the statutory guidance.
When does the disregard apply? (the timing trap)
Answer first: The 12-week clock starts the day the local authority first arranges or funds the placement — NOT the day the resident moves in if the family self-funded the first weeks. Self-funding before approaching the council can forfeit the disregard entirely.
The 12-week property disregard is triggered when someone enters a care home on a permanent basis for the first time. This is a critical distinction. If someone goes into a care home for respite or temporary care, their property is already disregarded under different rules — the 12-week clock does not start. Our respite care funding guide covers the four UK routes families use to pay for short stays, including the NHS CHC route that covers respite as part of the standard care package.
The local-authority arrangement precondition
The 12-week disregard only runs while the local authority is arranging or funding the placement. This is the single biggest source of lost disregard time. Here is what families typically miss: in a hospital-discharge crisis, family members often pay the first 4–8 weeks privately while the means-test assessment is sorted out. Then they apply for local-authority help, only to discover the disregard period either started running from the move-in date (and a chunk of it has been wasted) or — in some councils' interpretation — never properly started because the LA was not the original arranger.
Practical rule: approach the local authority for a Care Act assessment before a permanent placement begins, even if you can afford to self-fund. Ask the authority to confirm in writing (a) the date they consider the permanent placement to have started, and (b) the date the 12-week clock began. If they refuse, escalate to the council's adult social care complaints procedure, citing Annex B, paragraph 39 of the statutory guidance.
What we see in advocacy conversations:in case after case, families pay weeks 1–6 privately while waiting for the local authority assessment to come through. By the time the LA agrees to fund the placement, the disregard window has either started running from move-in (so several weeks are already gone) or — in some councils' reading of the statutory guidance — never properly opened because the LA was not the original arranger. This is the single most common cause of lost disregard time. The fix is procedural: trigger a Care Act assessment before the move-in date.
The mid-stay disregard (Annex B, paragraph 46)
A separate, lesser-known 12-week disregard applies when there is a sudden change in financial circumstances mid-stay. The classic case: a spouse who was living in the property dies, and the property was previously permanently disregarded because of their occupation. From the date that permanent disregard ceases, a fresh 12-week disregard can be triggered to give the family time to arrange property finance. This is set out in Annex B, paragraph 46 of the Care and Support Statutory Guidance — and many local authorities forget it exists. If your circumstances change mid-placement, request this disregard in writing.
Who qualifies for the 12-week disregard?
The 12-week disregard applies to anyone who meets all of the following conditions:
If you already have savings and investments above £23,250 even without the property, the disregard does not help — you would be a self-funder regardless. Similarly, if the property is already excluded because a qualifying person lives there, you do not need the 12-week disregard because the property is permanently excluded anyway.
What the local authority pays during the 12 weeks
During the 12-week disregard period, the local authority carries out the financial assessment as normal but ignores the value of your property. Your contribution is calculated from your income (less the Personal Expenses Allowance of £31.80 per week for 2026/27, up from £30.65 in 2025/26 — see the DHSC charging circular for 2026 to 2027) and any non-property savings or investments. Our Care Act financial assessment guide walks through how the council must run this calculation, the deductions you can challenge, and how the 12-week disregard slots into the wider assessment timeline.
The local authority pays the difference between your assessed contribution and the actual cost of the care home placement. If your non-property capital is below the lower threshold of £14,250, you will not be charged any tariff income on savings. Between £14,250 and the upper threshold of £23,250, you are charged £1 per week for every £250 (or part of £250) above £14,250. Both capital limits have been frozen in England since 2010.
If your loved one is in a nursing home, a separate NHS contribution called NHS-Funded Nursing Care applies on top of the local-authority arrangement. This is paid direct to the home at £254.06 per week (2025/26 rate) per NHS England's CHC and FNC statistics, and is not means-tested. It does not affect the 12-week disregard — it simply reduces what the home charges for the nursing element of the placement.
The top-up trap:The local authority will usually only fund a placement up to the rate it would normally pay for that type of care. If the care home charges more than the local authority's standard rate, a family member may be asked to pay a “third-party top-up” — even during the 12-week disregard period. Top-ups must be genuinely affordable and should never be paid by the resident themselves. If you are pressured to sign a top-up agreement, get it in writing and check it complies with the Care Act 2014 and Annex A of the statutory guidance.
Should you be applying for CHC instead?
Answer first: If your loved one's care needs are primarily health-related rather than social, NHS Continuing Healthcare (CHC) pays 100% of the care home fees — no means test, no property assessment, no disregard needed. The 12-week disregard solves the wrong problem if CHC should have been funding the placement.
The 12-week property disregard exists because the means test exists. But the means test only applies if the local authority is funding the care. NHS Continuing Healthcare sits outside the means-tested system entirely. If your loved one is awarded CHC, the NHS pays for everything — care home fees, nursing care, personal care — regardless of how much you own.
Most families never check CHC eligibility before accepting a means-tested arrangement. Hospitals discharge to care homes, the local authority does the financial assessment, the property is counted, and families end up spending £52,000 to £83,200 a year of their own money — when the NHS should have been paying.
The numbers tell the story. Across England in 2024/25, NHS England's CHC quarterly statistics show 51,981 of 64,604 standard CHC referrals (80.5%) were rejected at full assessment — but Fast Track CHC, for rapidly deteriorating conditions, ran at a 94% approval rate. Over the 12-week disregard period, the local authority might contribute around £18,144 (12 weeks × £1,512/week, the 2026 UK nursing average). For the same period, full CHC funding pays £18,144 plus all top-ups, with no asset count and no debt to repay later. The 80.5% rejection rate is exactly why evidence preparation matters — most rejections are reversible at appeal.
Critically, CHC and the disregard run in parallel. You can claim the 12-week disregard and request a CHC Checklist at the same time. The disregard buys you time to assemble the evidence pack the assessor will need. If CHC is awarded, the disregard becomes irrelevant — the NHS picks up the full bill from the date of eligibility.
Three questions to ask before week 12
The decisions below determine whether your family ends up in the means-tested system or out of it entirely. Work through the flowchart in order — the CHC question comes first because if your loved one is eligible, every other question becomes academic.
When CHC is most likely to apply
CHC eligibility turns on the nature, intensity, complexity, and unpredictabilityof care needs across the 12 DST domains — not on the diagnosis itself. Conditions where CHC is most often awarded include advanced dementia, Parkinson's with complex symptoms, motor neurone disease, end-stage organ failure, and recovery from major stroke or brain injury. If your loved one is being moved to a care home because hospital discharge teams say they need 24-hour skilled nursing or significant clinical oversight, that is a strong signal to request a CHC Checklist before signing any care home contract.
Before the means test starts
Find out if NHS CHC should be paying — not your savings
Our Case Strength Report reviews your loved one's situation against all 12 DST domains and tells you whether a Checklist request is worth pursuing. AI plus expert review, typically within 48 hours.
What happens after the 12 weeks are up
Once the 12-week disregard period ends, the value of your property is included in the financial assessment. For most people, this means their total assets will exceed the upper capital limit of £23,250, and they will be assessed as a full self-funder — responsible for the entire cost of their care.
At this point, you have several options:
Sell the property
The most straightforward option. The proceeds are added to your capital, and you pay for care until your assets fall below £23,250, at which point the local authority begins contributing again.
Enter a deferred payment agreement
The local authority pays your care fees and places a legal charge on your property. The debt is repaid when the property is sold — either during your lifetime or from your estate after death. This avoids an immediate sale.
Rent out the property
Rental income can be used to pay care fees. The capital value of the property is still counted in the means test, but if the rental income covers the fees, this can be a practical solution that preserves the asset for longer.
Request a discretionary extension
If you have a genuine reason why 12 weeks was not enough — for example, the property is in probate, or there are legal complications — you can ask the local authority to extend the disregard. There is no guarantee, but they have the power to do so.
When your property is permanently disregarded
In certain circumstances, your property is permanently excluded from the means test — meaning it is never counted, regardless of how long you are in the care home. The local authority must disregard the property if any of the following people still live there:
The local authority also has discretionary power to disregard the property in other cases — for example, if a carer who gave up their own home to look after the person still lives there, or if someone who is not a relative but was living with the person as part of a long-standing arrangement remains in the property. These cases are decided individually, and you should make a written request explaining the circumstances.
Key point: If your spouse or partner is still living in the home, you do not need the 12-week disregard at all — the property should be permanently excluded from the means test. If the local authority is trying to count it, challenge them immediately. This is one of the most common errors in care home financial assessments.
The deferred payment agreement option
A deferred payment agreement (DPA) is effectively a loan from the local authority, secured against your property. The local authority pays your care home fees and registers a legal charge on the property. The debt — plus interest and any administration fees — is repaid when the property is eventually sold or from your estate after death.
Under the Care Act 2014, local authorities in England are required to offer a DPA to anyone who meets the eligibility criteria. You are eligible if:
The interest rate is set by the Department of Health and Social Care and reviewed twice a year (in January and July). The rate from 1 January 2026 is 4.75% APR, applied on a compound basis (see Liverpool City Council's published DPA ratesas a worked example). The local authority can also charge an administration fee. The total amount that can be deferred is usually capped — the authority will retain an “equity limit” to ensure there is enough value in the property to repay the debt, typically leaving a buffer of around 10% of the property value.
A DPA is a good option if you want to avoid selling the property immediately — perhaps because you hope a family member will eventually live there, or because you expect the property market to improve. However, interest does accrue, so the longer the agreement runs, the more you owe. The statutory framework is set out in sections 34 to 36 of the Care Act 2014 and the Care and Support (Deferred Payment) Regulations 2014. Make sure you understand the total cost before signing — our full 2026 Deferred Payment Agreement guide walks through how DPAs interact with NHS Continuing Healthcare and shows a worked-example cost comparison.
How to apply and common mistakes to avoid
The 12-week property disregard should be applied automatically by the local authority as part of the financial assessment. You should not need to make a separate application. However, in practice, some local authorities fail to mention it, apply it late, or get the dates wrong. Here is what to do and what to watch out for:
Ask the local authority to confirm the start date in writing
The 12 weeks should start from the date the person is assessed as needing permanent care, or the date they move in — whichever is later. Get written confirmation of the start and end dates. If the authority is vague, put your request in writing and cite Annex B of the Care and Support statutory guidance.
Do not assume the care home will handle it
Care homes are not responsible for arranging the 12-week disregard or deferred payment agreements. This is between you and the local authority. The care home will expect fees to be paid regardless, so make sure funding arrangements are in place before or soon after admission.
Start thinking about what comes next immediately
Twelve weeks goes quickly. If you think you may want a deferred payment agreement, start the application process in the first few weeks. If you plan to sell, instruct an estate agent early. Do not wait until week 11 — there will be a gap in funding if you are not prepared.
Check whether the property should be permanently disregarded instead
Before accepting the 12-week disregard, check whether the property should be permanently excluded. If a spouse, partner, or qualifying relative lives there, the property should not be counted at all — ever. The 12-week disregard is only needed if no permanent disregard applies.
Do not sign away rights under pressure
Some local authorities ask families to sign undertakings or agreements during the 12-week period — for example, agreeing to sell the property by a certain date. You are not obliged to sell. You have the right to a deferred payment agreement instead. Do not sign anything you are uncomfortable with without taking advice.
Frequently asked questions about the 12-week property disregard
What is the 12-week property disregard?
The 12-week property disregard is a rule that means your home is not counted as an asset during the first 12 weeks after you move permanently into a care home. During this period, the local authority pays the difference between what you can afford from your income and savings (excluding the property) and the full cost of care. It gives you time to decide what to do with your property without being forced into a rushed sale.
Does the 12-week disregard apply to everyone?
The disregard applies to anyone entering a care home on a permanent basis for the first time whose main or only capital asset is their home. It does not apply if you already have savings or other assets above the upper capital limit (currently £23,250 in England). It also does not apply if your property is already disregarded for another reason — for example, if your spouse or partner still lives there.
What happens after the 12 weeks are up?
After 12 weeks, your property is included in the financial assessment. If the value of your home takes your total assets above the upper capital limit, you become responsible for the full cost of your care. At that point you can sell the property, rent it out to cover fees, or enter into a deferred payment agreement with the local authority — which is essentially a loan secured against the property.
Can the 12-week disregard be extended?
There is no automatic right to extend the 12-week period. However, if there are genuine reasons why the property cannot be sold or dealt with in 12 weeks — for example, if probate is ongoing or the property market is particularly difficult — the local authority has discretion to extend the disregard. You should write to them explaining the circumstances and requesting an extension before the 12 weeks expire.
What is a deferred payment agreement?
A deferred payment agreement (DPA) is an arrangement where the local authority pays your care home fees on your behalf, secured as a charge against your property. You repay the amount when the property is eventually sold or from your estate after death. Local authorities in England are required to offer DPAs to anyone who meets the eligibility criteria. There is usually an administration fee and interest is charged on the deferred amount.
Is my property always counted in the means test?
No. Your property is permanently disregarded — meaning it is never counted — if your spouse, civil partner, or cohabiting partner still lives there. It is also disregarded if a relative aged 60 or over lives there, or if a relative who is incapacitated lives there. In some cases, the local authority may also use discretion to disregard the property if a carer who gave up their own home to look after you lives there.
Can you get 12 weeks free in a care home?
Not quite — the placement is not free, but the property is ignored. During the 12-week disregard, your property is excluded from the means test, but you still contribute from your income (less the £31.80/week Personal Expenses Allowance for 2026/27) and any non-property savings above £14,250. The local authority covers the rest up to its standard rate. If you are eligible for NHS Continuing Healthcare, the NHS pays 100% — no contribution at all.
What is the 12-week disregard in Scotland?
Scotland operates a similar but distinct system under the Charging for Residential Accommodation Guide (CRAG). The Personal Expenses Allowance in Scotland rises to £37.65 per week from April 2026 — higher than England's £31.80. The 12-week property disregard rules are broadly comparable but applied by local authorities in Scotland, not under the Care Act 2014. If your loved one is in a Scottish care home, contact Care Information Scotland for current Scottish guidance.
What is the 12-week disregard period for attendance allowance?
These are different concepts that families often confuse. The 12-week property disregard relates to the means test for care home fees. Attendance Allowance is a separate disability benefit — and it stops 28 days after someone becomes resident in local-authority-funded care, not after 12 weeks. If you are self-funding (including during the 12-week disregard), Attendance Allowance can continue. Get advice if a Local Authority is asking for repayment.
Do you have to pay back the 12-week disregard?
No. The local authority's contribution during the 12 weeks is funding, not a loan — there is nothing to repay later. What may need repaying is anything you defer through a Deferred Payment Agreement (DPA) after the 12 weeks. The DPA is secured against the property and accrues interest at the gov-set rate (4.75% APR from 1 January 2026). Make sure you understand which type of arrangement you have signed.
Related guides
Care Home Fees Explained
A complete guide to how care home fees work in England, including who pays, how much, and what help is available.
The Care Home Means Test
How the local authority financial assessment works, what counts as capital, and how to avoid common mistakes.
Care Home Funding Options
All the ways to fund care home fees — from NHS Continuing Healthcare to attendance allowance and top-up payments.
CHC Eligibility Guide
Could your loved one qualify for fully-funded NHS care? How to check eligibility and request a CHC assessment.