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 billing authority considers are in financial need. 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 those matters which must be included in such a scheme by virtue of paragraph 2 of Schedule 1A to the 1992 Act.

These Regulations amend the 2012 Regulations. Regulation 3 inserts new definitions of a Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme payment, a miscarriage of justice compensation payment and Scottish Adult Disability Living Allowance, which are to be disregarded for certain purposes in calculating a council tax reduction.

Regulation 12 of the 2012 Regulations provides that persons “treated as not being in Great Britain” are not eligible for a council tax reduction; that is, where he or she is not habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland. Regulation 4 of these Regulations amends regulation 12 of the 2012 Regulations. The amendments provide for further exemptions from the habitual residence test for persons who were residing in a country or territory in respect of which the Government has advised British nationals to leave or arranged evacuation, dependent on immigration status and for those in receipt of universal credit.

The figures in the 2012 Regulations which are uprated by regulations 5(3)(a) to (e), 6(2) to (4) and (9), 7 and 9 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); the income bands in relation to which the amount of a person’s alternative maximum council tax reduction is calculated; and the amounts to be deducted from the calculation of the applicant’s income.

Regulation 5(2) amends Schedule 1 to the 2012 Regulations to provide in certain circumstances for a temporary period of absence from a dwelling (during which the person is treated as not being absent for the purposes of determining a council tax reduction) for up to 26 weeks where a person is present in a country or territory in respect of which the Government has advised British nationals to leave or arranged evacuation. Regulations 5(3)(f) to (h), (4) and (5) and 8 make amendments to the 2012 Regulations to provide for circumstances in which Scottish Adult Disability Living Allowance (where payable for a transitional period when a person moves from Scotland to England), Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme and miscarriage of justice compensation payments will be disregarded in calculating a council tax reduction. Regulation 5(5) makes amendments to ensure that Scottish Adult Disability Living Allowance is included in an assessment of incapacity of an applicant’s partner. Regulation 6(5) to (8) makes amendments to include relevant payments in the calculation of premiums.

Regulation 10 amends the provisions in Schedule 6 to the 2012 Regulations which relate to the capital of an applicant for a council tax reduction which is to be disregarded in calculating that reduction to add relevant payments to the list of “capital disregards”.

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