The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2016

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 (“the Prescribed Requirements Regulations”) and the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013 (“the Default Scheme Regulations”) made under section 13A(4) and (5) of, and Schedule 1B to, the Local Government Finance Act 1992.

The Prescribed Requirements Regulations require each billing authority in Wales to make a scheme specifying the reductions which are to apply to amounts of council tax payable by persons, or classes of persons, whom the authority considers are in financial need. The Prescribed Requirements Regulations also set out the matters that must be included within such a scheme.

The Default Scheme Regulations set out a scheme that will take effect, in respect of dwellings situated in the area of a billing authority, if the authority fails to make its own scheme.

These Regulations amend both the Prescribed Requirements Regulations and the Default Scheme Regulations. The amendment in regulation 3 amends the definition of “the benefit Acts” used within the Prescribed Requirement Regulations to include a reference to the Pensions Act 2014 (“the Pensions Act”). The same amendment is made to the Default Scheme Regulations by regulation 16.

The amendments to the Prescribed Requirements regulations made by regulations 4, 5(a)(vi), (b), (d), (e)(ii) and (iii), 6(b) and (c), 7, 8(b), 9(a)(vi) and (b), 10(a)(ii) and (iii), (b) and (c), 12, 13 and 14 are made in consequence upon provision in the Social Services and Well-being Wales Act 2014 and the Care Act 2014 (“the 2014 Acts”).

The majority of the amendments replace the current method by which a person is determined to be blind with the condition that a person must either be blind or severely sight-impaired.

The amendments within regulations 5(b)(iii), 12 and 13(a), (b) and (d) reflect the new arrangements that exist for the purposes of meeting a person’s needs for care and support under the 2014 Acts.

The amendment made by regulation 14 reflects the bursary payments that can now be made under the Social Services and Well-being (Wales) Act 2014.

All of these factors are relevant for the purpose of calculating the amount of reduction to which an applicant is entitled. The same amendments are made in relation to the Default Scheme Regulations by regulations 17, 18(f), 19, 21, 24, 25(b) and (c), 26(a)(ii) and (iii), (b) and (c), 27, 29, 30(b) and 31.

The amendments to the Prescribed Requirements Regulations made by regulations 5(c), 5(e)(i), 5(f)(ii), 8(a), 9(c)(ii), 10(a)(i) and 11 are made in consequence upon Part 1 of the Pensions Act. They insert references to a state pension where there are currently references to a retirement pension. Regulation 5(c)(i) inserts a reference to the new section 55AA of the Social Security Contributions and Benefits Act 1992, which in turn concerns shared additional pension because of a new state pension credit. The same amendments are made in relation to the Default Scheme Regulations by regulations 20, 22(b), 26(a)(i), 28 and 30.

The amendments to the Prescribed Requirements Regulations made by regulations 5(a)(i) to (v), 6(a) and 9(a)(i) to (v) increase certain figures that are used in calculating whether a person is entitled to a reduction and the amount of that reduction. The up-rated figures relate to non-dependant deductions (adjustments made to the maximum amount of reduction a person can receive to take account of adults living in the dwelling who are not dependants of the applicant); and the applicable amount in relation to an application for a reduction (the amount against which an applicant’s income is compared in order to determine the amount of reduction to which the applicant is entitled). The same amendments are made in relation to the Default Scheme Regulations by regulations 18(a) to (e) and 25(a).

The amendments to the Prescribed Requirements Regulations made by regulations 5(f)(i) and (g) and 9(c)(i) and (d) are made in consequence upon the National Insurance Contributions Act 2015 which amended section 11 of the Social Security Contributions and Benefits Act 1992 so that the small earnings exception is now known as small profits threshold. The same amendments are made in relation to the Default Scheme Regulations by regulations 22(a) and 23.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Local Government Finance and Public Services Performance Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.