Explanatory note

The Council Tax Reduction Schemes and Prescribed Requirements (Wales) (Regulations) 2012 (“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. These schemes will operate from 1st April 2013. The Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2012 set out a scheme which will take effect if an authority fails to make its own scheme on or before 31st January 2013.

Persons considered to be in financial need receive council tax benefit to assist them to meet their council tax liability. However, under the provisions of the Welfare Reform Act 2012, council tax benefit will be abolished on 31st March 2013. The reduction schemes which authorities are required to make in accordance with the prescribed requirements Regulations will replace council tax benefit. These Regulations set out the transitional provisions that will apply to persons who are in receipt of, or who have made an application for, council tax benefit when the reduction schemes come into operation (regulations 3 to 6).

The Welsh Ministers' Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with these Regulations.