Explanatory note

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) 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 matters that must be included within such a scheme.

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 31 January 2014.

These Regulations amend the Prescribed Requirements Regulations and the Default Scheme Regulations. The amendments in regulations 5 and 16 amend the list of persons who do not need to show habitual residence, first, to update provision covering persons with leave to remain in the United Kingdom and, secondly, to include those nationals of Croatia who are subject to the worker authorisation scheme and who are treated as workers under that scheme.

The amendments in regulations 6(a), 7, 9(a), 10(a), (b) and (d) to (f), 17, 27 and 28(a), (b) and (d) to (f) 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); 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 amendments made by regulations 8, 11, 31 and 32 provide that certain payments made by local government for welfare purposes, certain arrears of universal credit, and certain age-related payments are disregarded when assessing an applicant’s capital.

The amendments in regulations 3, 4, 6(b), 9(b), 10(c), 12, 14, 15, 18 to 26, 28(c), 29 and 30 correct errors that appeared in both the Prescribed Requirements Regulations and the Default Scheme Regulations.

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.