The Council Tax Reduction and Council Tax (Discounts) (Miscellaneous Amendment) (No. 2) (Scotland) Regulations 2022

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make amendments to the Council Tax Reduction (Scotland) Regulations 2021 (“the Working Age Regulations”), the Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012 (“the Pension Age Regulations”), and the Council Tax (Discounts) (Scotland) Regulations 1992 (“the Discount Regulations”). Regulations 2 and 3 amend the Working Age Regulations, regulations 4 and 5 amend the Pension Age Regulations and regulations 6 and 7 amend the Discount Regulations.

Regulation 3(1) amends the definition of “non-dependant” in the Working Age Regulations so that it does not cover any person who normally resides with a council tax reduction applicant and who resided in Ukraine immediately before 1 January 2022, left Ukraine in connection with the Russian invasion which took place on 24 February 2022 and, under section 3ZA of the Immigration Act 1971, does not require leave to enter or remain in the United Kingdom. This captures Irish citizens. Regulation 5(2) makes an equivalent amendment to the Pension Age Regulations.

Regulations 3(2)(a) and (b) clarify that, in relation to children and young people entitled to short-term assistance under the Regulations governing child disability payment and adult disability payment, an addition will be made to the applicable amount.

Regulation 3(2)(c) substitutes a new paragraph 12(8) of schedule 1 to exclude entitlement to the disability premium where the partner of the applicant has, or is treated as having, limited capability for work, provided the partner has an award of universal credit, or the applicant and the applicant’s partner have a joint award. Entitlement is also excluded where the applicant has or is treated as having limited capability for work-related activity, or, in the event that the applicant’s partner, or the applicant and their partner jointly, has an award of universal credit, where the partner of the applicant has or is treated as having limited capability for work-related activity. This ensures that paragraph 20 of schedule 1 operates as intended. An applicant is not excluded from entitlement to the work-related activity component or support component under paragraph 21 or 22 of schedule 1 because the applicant is entitled to the disability premium in paragraphs 11 and 12 as a result of having limited capability for work-related activity. Similarly, in cases involving an award of universal credit, the applicant is not excluded by lack of certainty as to whether it is the applicant or the applicant’s partner who has or is treated as having limited capability for work or limited capability for work-related activity and, therefore, whether the exclusion from entitlement to the disability premium applies.

Regulation 3(2)(d)(i) provides that the condition in paragraph 14(1) of schedule 1 for entitlement to enhanced disability premium can be met where it is the partner of the applicant who has, or is treated as having, limited capability for work-related activity, provided the partner has an award of universal credit, or the applicant and their partner have a joint award, rather than this being limited to the applicant having or being treated as having limited capability for work-related activity. Regulation 3(2)(d)(ii) corrects a minor typographical error. Regulation 3(2)(d)(iii) expands the definition of “limited capability for work-related activity” to cover the partner of the applicant and the scenario of a joint award of universal credit.

Regulation 3(2)(e) extends the circumstances in which entitlement to work-related activity component or support component can arise without the end of the assessment period under the Welfare Reform Act 2007 for employment and support allowance having been reached. It also clarifies that entitlement to the components can be derived from having an award of universal credit, and expands the definitions of “limited capability for work” and “limited capability for work-related activity” to cover the partner of the applicant and the scenario of a joint award of universal credit.

Regulation 3(2)(f) clarifies which component is to be counted towards the applicable amount of an applicant, in the case where an applicant or an applicant’s partner, or the applicant and their partner jointly, has an award of universal credit, where one member of the couple meets the conditions for entitlement to the work-related activity component and the other meets the conditions for the support component.

Regulation 3(3) provides that the payments comprising the £650 low income cost of living payment announced by the Chancellor of the Exchequer on 24 May 2022, where made to a person in receipt of working tax credit, is not to be counted as capital in establishing entitlement to council tax reduction. Regulation 5(5)(b) makes an equivalent amendment to the Pension Age Regulations.

Regulation 7 amends the Discount Regulations to add to the list of persons who are to be disregarded in working out entitlement to a discount from liability to council tax. The addition is any person who resided in Ukraine immediately before 1 January 2022, left Ukraine in connection with the Russian invasion which took place on 24 February 2022 and, under section 3ZA of the Immigration Act 1971, does not require leave to enter or remain in the United Kingdom. This captures Irish citizens.

Regulation 8, together with regulation 5(1), (3), (4) and (5)(a), revokes provisions for the disregard of certain payments related to coronavirus, for the purposes of working out entitlement to council tax reduction for people of pensionable age. These provisions are no longer required.