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 amendments to the Prescribed Requirements Regulations made by regulations 3(a), 4(a) and (c)(ii), 5(a), 6(a) and (c)(ii) to (e) 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 8, 17(a) and (c)(ii), 18(a) and (c)(ii) to (e).
The amendments to the Prescribed Requirements Regulations made by regulations 3(a)(iii) to (vi), 4(a) and 5(a)(iii) to (vi) also rectify inconsistencies between the figures within the Welsh language and English language versions of those Regulations that were inserted by the Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2016. The same amendments are made in relation to the Default Scheme Regulations by regulations 8(c) to (f) and 17(a).
The amendments to the Prescribed Requirements Regulations made in regulations 3(b) and 5(b) and (c) make changes to provisions about when an applicant’s average weekly earnings from employment are taken into account. The earnings will be taken into account in the reduction weeks specified, even if the applicant does not actually receive the earnings from their employer in that week. The same amendments are made in relation to the Default Scheme Regulations by regulations 9, 11 and 12.
The amendments to the Prescribed Requirements Regulations made by regulations 3(c) to (e) and 5(d) to (g) update references to “personal reliefs” so as to refer to the relevant provisions of the Income Tax Act 2007. The same amendments are made in relation to the Default Scheme Regulations by regulations 10 and 13 to 16.
The amendments to the Prescribed Requirements Regulations made by regulations 4(b) to (c)(i) and 6(b) and (c)(i) provide that, where a carer for a severely disabled person has an award of universal credit which includes the carer element, that severely disabled person will not be entitled to the severe disability premium when determining that person’s applicable amount. The same amendments are made in relation to the Default Scheme Regulations by regulations 17(b) and (c)(i) and 18(b) and (c)(i).
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.