The Council Tax Reduction Schemes (Prescribed Requirements) (England) (Amendment) Regulations 2025

Explanatory Note

(This note is not part of the Regulations)

Section 13A of the Local Government Finance Act 1992 (“the 1992 Act”) requires each billing authority in England to make a scheme specifying the reductions which are to apply to amounts of council tax payable by persons, or classes of person, whom the billing authority considers are in financial need. The Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 (“the 2012 Regulations”) prescribe matters which must be included in such a scheme in addition to those matters which must be included in such a scheme by virtue of paragraph 2 of Schedule 1A to the 1992 Act.

These Regulations amend the 2012 Regulations. Regulation 3 inserts new definitions of carer support payment and pension age disability payment, which are to be disregarded for certain purposes in calculating a council tax reduction. Regulation 4 amends the definitions of a person who is or is not a pensioner to disregard any award of Universal Credit to which regulation 60A of the Universal Credit (Transitional Provisions) Regulations 2014 (S.I. 2014/1230) applies.

Regulation 5(2) amends paragraph 6 of Schedule 1 to the 2012 Regulations to remove the two-child limit in respect of calculating a council tax reduction.

The figures in the 2012 Regulations which are uprated by regulations 5(3)(a) to (e), 6(2) to (4) and (8)(b), 7(a) and 9(a) 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); the applicable amount in relation to an applicant for a reduction (the amount against which an applicant’s income is compared in order to determine the amount of reduction to which he or she is entitled); the income bands in relation to which the amount of a person’s alternative maximum council tax reduction is calculated; and the amounts to be deducted from the calculation of the applicant’s income other than earnings.

Regulation 5(3)(f) to (g), (4) and (5) and regulations 8 and 9(b) make amendments to the 2012 Regulations to provide for circumstances in which a carer support payment and adult and pension age disability payments will be disregarded in calculating a council tax reduction. Regulation 5(3)(g)(ii) makes an amendment to clarify that certain payments to be disregarded from a non-dependant’s income are payments as income in kind, regulation 5(3)(h)(i) corrects an oversight in S.I. 2024/29 and regulation 5(3)(h)(ii) makes an amendment to add to the list of non-dependant income disregards payments made to any person out of the estate of a deceased person in connection with infected blood compensation schemes. Regulation 5(6) makes amendments to ensure that relevant Scottish disability payments are included in an assessment of incapacity of an applicant’s partner. Regulation 6(5) to (8)(a) makes amendments to include relevant payments in the calculation of premiums. Regulation 7(b) inserts in paragraph 2 of Schedule 3 a cross-reference to paragraph 8(9) of Schedule 1 to ensure that all relevant disability and other payments and allowances are disregarded from the gross income of a second adult for the purposes of calculating an alternative maximum council tax reduction.

Regulation 10 amends the provisions in Schedule 6 to the 2012 Regulations which relate to the capital of an applicant for a council tax reduction which is to be disregarded in calculating that reduction to add to the list of “capital disregards” payments made to any person out of the estate of a deceased person in connection with infected blood compensation schemes.

An impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.