The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Wales) (Amendment) Regulations 2018

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 4(a)(i) to (v), 5, 9(a)(i) to (v) and 10(a), (c) and (e) increase certain figures that are used in calculating whether a person is entitled to a reduction and the amount of that reduction. The uprated 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 17(a) to (e), 24 and 25(a), (c) and (e).

The amendments to the Prescribed Requirements Regulations made by regulations 3(a)(iii) and (c), 4(d)(ii), 6, 9(d)(ii) and (iii), 10(b) and (d) and 11 are made in consequence of provision in sections 15 and 16 of the Welfare Reform Act 2016. From 3 April 2017, generally entitlement to Employment and Support Allowance is based on whether or not a person has limited capability for work rather than receipt of the Employment and Support Allowance work-related activity component. Regulation 3(a)(iii) inserts a new definition into regulation 2 of the Prescribed Requirements Regulations namely, “member of a work-related activity group”. The subsequent amendments introduce references to an applicant or applicant’s partner being a member of a work-related activity group or having limited capability for work. The same amendments are made to the Default Scheme Regulations by regulations 16(a)(iii) and (c), 17(f), 22(b) and (c), 25(b) and (d), 26 and 28.

The amendments to the Prescribed Requirements Regulations made by regulations 3(b), 4(d)(i) and 9(d)(i) are made in consequence of provision in the Regulation and Inspection of Social Care (Wales) Act 2016 (“the 2016 Act”). Regulation 3(b) amends the definition of “care home” to include reference to a care home service within the meaning of Part 1 of the 2016 Act. Regulations 4(d)(i) and 9(d)(i) substitute the reference to a domiciliary care worker with reference to a person who is employed, or engaged under a contract for services, to provide care and support by the provider of a domiciliary support service within the meaning of Part 1 of the 2016 Act. Regulation 16(b) makes the same amendment to the definition of “care home” in the Default Scheme Regulations, and the substituted reference to domiciliary care home worker is inserted by regulation 22(a).

The amendment to the Prescribed Requirements Regulations made by regulation 4(b)(i) is made in consequence of the Pensions Act 2014 which replaces the bereavement allowance and payment with a bereavement support allowance. The reference to “bereavement payment” in the provision dealing with the meaning of income in respect of pensioners has been replaced with “bereavement support payment”. The same amendment is made to the Default Scheme Regulations by regulation 18(a).

The amendments made to the Prescribed Requirements Regulations by regulations 3(a)(i), (ii), (iv), (v) and (d), 8(a), 9(a)(vii), (c), (e) and (f), 12(b), 13(a) and (b) and 14 define and add an approved blood scheme, the Scottish Infected Blood Support Scheme, the London Emergencies Trust and the We Love Manchester Emergency Fund to the list of schemes or trusts payments from which are to be disregarded in the calculation of income or capital for the purposes of assessing a person’s entitlement to a council tax reduction. The same amendments are made to the Default Scheme Regulations by regulations 16(a)(i), (ii), (iv), (v) and (d), 17(g), 21, 23, 29(b), 30(a) and 31(a) to (c).

The amendments made to the Prescribed Requirements Regulations by regulations 4(c) and 9(b) clarify the date on which an applicant’s earnings are taken into account where an applicant commences employment or an applicant’s earnings change in order to provide consistency with corresponding provision in the Regulations regarding a change of circumstances. The same amendments are made to the Default Scheme Regulations by regulations 19 and 20.

The amendments made to the Prescribed Requirements Regulations by regulations 4(a)(vii), 8(b), 9(a)(viii) and (ix) and 13(c) provide that payments made under or by certain trusts established for the purpose of giving relief and assistance to disabled people whose disabilities were caused by the fact that during their pregnancy their mother had taken the drug known as Thalidomide, are to be disregarded in the calculation of capital for the purposes of assessing a person’s entitlement to a council tax reduction, and when determining the income of non-dependents. The same amendments are made to the Default Scheme Regulations by regulations 17(i), 30(b) and 31(d).

The amendments made to the Prescribed Requirement Regulations by regulations 4(b)(ii), 7 and 12(a) amend the lists of income other than earnings when determining a persons eligibility for a reduction so that any payment made by a government to victims of National Socialist persecution is disregarded. The same amendments are made to the Default Scheme Regulations by regulations 18(b), 27 and 29(a).

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.