The Fines, Council Tax and Community Charges (Deductions from Universal Credit and Other Benefits) Regulations 2013

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Fines (Deductions from Income Support) Regulations 1992 (S.I.1992/2182) (“the Fines Deductions Regulations”), the Council Tax (Deductions from Income Support) Regulations 1993 (S.I.1993/494) (“the Council Tax Deductions Regulations”), the Community Charges (Deductions from Income Support)(No.2) Regulations 1990 (S.I.1990/545) (“the Community Charges Deductions Regulations”) and the Community Charges (Deductions from Income Support)(Scotland) Regulations 1989 (S.I.1989/507) (“the Community Charges Deductions (Scotland) Regulations”).

Regulations 2 to 6 amend the Fines Deductions Regulations. First, they add universal credit (that being a new benefit introduced by Part 1 of the Welfare Reform Act 2012 (c.5) (“the 2012 Act”)) to the list of benefits from which deductions under those Regulations can be made to recover both fines and amounts payable under compensation orders. They ensure that such deductions are to be made when after the deduction, there will remain at least one penny of universal credit in payment. The amount of the deduction is to be a minimum of 5 per cent. of the appropriate universal credit standard allowance for the relevant assessment period up to a maximum deduction of £108.35 (regulation 5(3)). Provision is also made as to the circumstances when such deductions can be made by the Secretary of State, the timing of such deductions, when they are to cease and for rounding of the 5 per cent. figure.

Regulation 5(4) changes the rate of deduction where the offender is entitled to contribution-based jobseeker’s allowance or contributory employment and support allowance from one-third of the relevant age-related amount to 40 per cent. of that amount. Regulation 5(6) however makes provision excluding from the scope of that provision persons in respect of whom applications to recover fines by deductions are received by the Secretary of State before these Regulations come into force. Regulation 5(5) removes the relevant rounding rule which is no longer necessary.

Regulations 7 to 12 make similar amendments to the Council Tax Deductions Regulations which relate to recovery of outstanding council tax except that the amount deducted is to be 5 per cent. of the appropriate universal credit standard allowance for the relevant assessment period (regulation 11(3)). Regulation 11(6) however makes provision excluding from the scope of regulation 11(4) (equivalent to regulation 5(4)) persons in respect of whom applications to recover council tax by deduction are received by the Secretary of State before these Regulations come into force.

Regulations 13 to 17 amend the Community Charges Deductions Regulations and regulations 18 to 22 amend the Community Charges Deductions (Scotland) Regulations only to add universal credit to the list of benefits from which community charges can be recovered by deduction. They also provide (regulations 16(4) and 21(4)) that such deductions are to be made only after certain deductions have been made under Schedule 6 to the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance (Claims and Payments) Regulations 2013 (S.I.2013/380).

These Regulations also amend the definitions of “contribution-based jobseeker’s allowance” and “contributory employment and support allowance” applying in relation to deductions covered by these Regulations to reflect changes to those benefits made by the 2012 Act (regulations 3(4) and (5), 8(4) and (5) and 19(4) and (5)).

A full impact assessment has not been published for this instrument as it has no impact on the private sector or civil society organisations.