Explanatory note

Section 13A of the Local Government Finance Act 1992 (“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 person, whom the authority considers are in financial need (“a council tax reduction scheme”). The Council Tax Reduction Schemes (Prescribed Requirements) (England) Regulations 2012 (“the 2012 Regulations”) prescribe matters which must be included in such a scheme in addition to matters set out in paragraph 2 of Schedule 1A to the 1992 Act. These Regulations amend the 2012 Regulations. The majority of the amendments are to ensure consistency with changes to social security legislation.

The amendments in regulation 2(2) amend the definition of “applicant participating as a service user”; the effect is that expenses paid to a wider category of persons will be disregarded when calculating income for the purposes of entitlement to a reduction under a scheme.

The amendments in regulation 2(3)(a), (4)(a) and (5) 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 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); 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) and the income bands in relation to which the amount of a person’s alternative maximum council tax reduction is calculated.

The amendments in regulation 2(3)(b) make changes to provisions about when an applicant’s average weekly earnings from employment are taken into account. The earnings will be taken into account in the reduction weeks specified, even if the applicant does not actually receive the earnings from their employer in that week.

The amendments in regulation 2(3)(c) and (d) are consequential on the coming into force of the National Insurance Contributions Act 2015.

The amendments in regulation 2(4)(b), (6) and (7) make amendments in relation to the family premium. The family premium is an element in the calculation of an applicant’s “applicable amount” and is being abolished, with effect from 1st May 2016, for the purposes of social security. Regulation 3 contains a transitional provision in relation to these changes.

The amendments in regulation 2(4)(c) and (d) have the effect that, where a carer for a severely disabled person has an award of universal credit which includes the carer element, that severely disabled person will not be entitled to an additional amount for care under an authority’s council tax reduction scheme.

The amendment in regulation 2(8) is consequential on the coming into force of Part 3 of the Children and Families Act 2014 (children and young people in England with special educational needs or disabilities).

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