The Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013

EXPLANATORY NOTE

(This note is not part of the Regulations)

Section 13A of the Local Government Finance Act 1992 (“the 1992 Act”) enables the Welsh Ministers to make regulations in connection with council tax reduction schemes. These 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 person, considered to be in financial need. Paragraphs 2 to 7 of Schedule 1B to the 1992 Act enable the Welsh Ministers to prescribe by regulations, matters that must be included in a scheme together with additional requirements which must or must not be included in a scheme.

Part 1 of these Regulations contains introductory provisions and definitions of key words and phrases. Part 2 makes provision about scheme requirements in relation to billing authorities in Wales, including classes of person, reductions and scheme procedural requirements. Part 3 prescribes classes of person who must be included in an authority’s scheme. Part 4 prescribes classes of person who must not be included in an authority’s scheme.

Part 5 and Schedules 1 to 5 prescribe the matters that must be included in an authority’s scheme in relation to pensioners. Schedules 1 to 5 set out the rules relevant to determine the eligibility of pensioners for a reduction and the amount of reduction under a scheme, and set out how income and capital of pensioners is to be treated in calculating eligibility for a reduction.

Part 5 and Schedules 6 to 10 prescribe the matters that must be included in an authority’s scheme in relation to persons who are not pensioners. Schedules 6 to 10 set out the rules relevant to determine the eligibility of non-pensioners for a reduction and the amount of reduction under a scheme, and set out how income and capital of non-pensioners is to be treated in calculating eligibility for a reduction, including in cases where a non-pensioner or partner has an award of universal credit.

Schedule 11 provides for the application of the scheme to students.

Part 5 and Schedules 12 to 14 prescribe the matters that must be included in an authority’s scheme in respect of all applicants.

For the financial year beginning on 1 April 2013 billing authorities in Wales were required to make and implement council tax reduction schemes. Part 6 of these Regulations sets out the transitional provisions that will apply to persons who are in receipt of, or who have made an application for, a reduction under existing reduction schemes, when the new schemes come into operation.

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 Service Performance Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ.