Explanatory note

These Regulations amend the Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 (“the prescribed requirements Regulations”) and the Council Tax Reduction Schemes (Default Scheme) (England) Regulations 2012 (“the default scheme Regulations”) made under Schedule 1A to the Local Government Finance Act 1992 (c.14) (“the 1992 Act”). Section 13A of 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 persons, whom the authority considers are in financial need. The prescribed requirements Regulations set out matters that must be included in such a scheme in addition to matters set out in paragraph 2 of Schedule 1A. The default scheme Regulations set out a scheme which will take effect, in respect of dwellings situated in the area of a billing authority, if the authority fails to make its own scheme on or before 31st January 2013.

These Regulations amend the prescribed requirements and default scheme Regulations to increase certain of the figures which 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) (regulations 3 and 8); 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) (regulations 4, 9 and 10), the income bands in relation to which the amount of a person’s alternative maximum council tax reduction is calculated (regulations 5 and 11) and a disregard that applies when calculating a person’s income (including inserting some words which were omitted from the prescribed requirements Regulations) (regulation 6).

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