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Draft Regulations laid before the National Assembly for Wales under section 13A(8) of the Local Government Finance Act 1992. STATUTORY INSTRUMENTS 2012 No. (W. ) COUNCIL TAX, WALES Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2012 EXPLANATORY NOTE (This note is not part of the Regulations) Section 13A of the Local Government Finance Act 1992 (“the 1992 Act”), substituted by section 9 of the Local Government Finance Act 2012, enables the Welsh Ministers to make regulations in connection with council tax reduction schemes. These 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 person, considered to be in financial need. Paragraphs 2 to 7 of Schedule 1B to the 1992 Act enable the Welsh Ministers to prescribe by regulations, matters that must be included in a scheme together with additional requirements which must or must not be included in a scheme. Part 1 of these Regulations contains introductory provisions and definitions of key words and phrases. Part 2 makes provision about scheme requirements in relation to billing authorities in Wales, including classes of persons, reductions and scheme procedural requirements. Part 3 prescribes classes of person who must be included in an authority’s scheme. Part 4 prescribes classes of person who must not be included in an authority’s scheme. Part 5 and Schedules 1 to 5 prescribe the matters that must be included in an authority’s scheme in relation to pensioners. Schedules 1 to 5 set out the rules relevant to determine the eligibility of pensioners for a reduction and the amount of reduction under a scheme, and set out how income and capital of pensioners is to be treated in calculating eligibility for a reduction. Part 5 and Schedules 6 to 10 prescribe the matters that must be included in an authority’s scheme in relation to persons who are not pensioners. Schedules 6 to 10 set out the rules relevant to determine the eligibility of non-pensioners for a reduction and the amount of reduction under a scheme, and set out how income and capital of non-pensioners is to be treated in calculating eligibility for a reduction, including in cases where a non-pensioner or partner has an award of universal credit. Schedule 11 provides for the application of the scheme to students. Part 5 and Schedules 12 to 14 contain matters that must be included in an authority’s scheme in respect of all applicants. The Welsh Ministers' Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to this Order. 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 at Local Government Finance and Public Service, Performance Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ. WELSH STATUTORY INSTRUMENTS 2012 No. (W. ) COUNCIL TAX, WALES Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2012 Made - - - - *** Laid before the National Assembly for Wales *** Coming into force - - *** CONTENTS PART 1 General 1. Title, commencement and application 2. Interpretation 3. Meaning of “pensioner” and “person who is not a pensioner” 4. Meaning of “couple” 5. Polygamous marriages 6. Meaning of “family” 7. Circumstances in which a person is to be treated as responsible or not responsible for another 8. Households 9. Non-dependants 10. Remunerative work PART 2 Council tax reduction schemes 11. Schemes 12. Duty to make schemes and exercise of functions by authorities 13. First financial year of schemes 14. Scheme requirements in relation to classes of persons 15. Scheme requirements in relation to reductions 16 Scheme procedural requirements 17. Revisions to and replacement of schemes 18. Notice requiring provision of information to the Welsh Ministers 19. Supply of documents 2 PART 3 Prescribed classes of person who must be included in an authority’s scheme 20. Classes of person who must be included in a scheme 21. Class A: pensioners whose income is less than the applicable amount 22. Class B: pensioners whose income is greater than the applicable amount 23. Class C: persons who are not pensioners whose income is less than the applicable amount 24. Class D: persons who are not pensioners whose income is greater than the applicable amount 25. Periods of absence from a dwelling PART 4 Prescribed classes of person who must not be included in an authority’s scheme 26. Classes of person who must not be included in a scheme 27. Persons treated as not being in Great Britain 28. Persons subject to immigration control 29. Persons whose capital exceeds £16,000 30. Students PART 5 Other matters that must be included in an authority’s scheme 31. Provision for pensioners 32. Provision for persons who are not pensioners 33. Provision for pensioners and persons who are not pensioners Schedules Schedule 1 – Determining eligibility for a reduction under an authority’s scheme, amount of reduction and calculation of income and capital: pensioners Schedule 2 – Applicable amounts: pensioners Schedule 3 – Sums disregarded from applicant’s earnings: pensioners Schedule 4 – Amounts to be disregarded in the calculation of income other than earnings: pensioners Schedule 5 – Capital disregards: pensioners Schedule 6 – Determining eligibility for a reduction under an authority’s scheme, amount of reduction and calculation of income and capital: persons who are not pensioners Schedule 7 – Applicable amounts: persons who are not pensioners Schedule 8 – Sums disregarded in the calculation of earnings: persons who are not pensioners Schedule 9 – Sums disregarded in the calculation of income other than earnings: persons who are not pensioners Schedule 10 – Capital disregards: persons who are not pensioners Schedule 11 – Students Schedule 12 – All applicants: matters that must be included in an authority’s scheme – procedural matters Schedule 13 - All applicants: matters that must be included in an authority’s scheme – other matters 3 Schedule 14 – Matters to be included in a notification The Welsh Ministers make the following Regulations in exercise of the powers conferred upon them by section 13A(4) of, and paragraphs 2 to 7 of Schedule 1B to, the Local Government Finance Act 1992(1). In accordance with section section13A(8) of that Act, a draft of this instrument, has been laid before and approved by resolution of the National Assembly for Wales. PART 1 General Title, commencement and application 1.—(1) The title of these Regulations is the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2012. (2) These Regulations come into force on xx 2012 and apply in relation to Wales. (3) These Regulations apply in relation to council tax reduction schemes made by authorities for financial years beginning on or after 1 April 2013. Interpretation 2.—(1) In these Regulations— “the 1992 Act” means the Local Government Finance Act 1992; “Abbeyfield Home” means an establishment run by the Abbeyfield Society including all bodies corporate or unincorporated which are affiliated to that society; “adoption leave” means a period of absence from work on ordinary or additional adoption leave by virtue of section 75A or 75B of the Employment Rights Act 1996(2); “AFIP” means an armed forces independence payment payable in accordance with an armed and reserve forces compensation scheme established under section 1(2) of the Armed Forces (Pensions and Compensation) Act 2004(3); “applicable amount” means— (a) in relation to a pensioner, the amount calculated in accordance with paragraph 1 of Schedule 1 and Schedule 2; and (b) in relation to a person who is not a pensioner, the amount calculated in accordance with— (i) paragraphs 1 and 2 of Schedule 6 and Schedule 7; or (ii) paragraph 3 of Schedule 6, as the case may be; “applicant” means a person applying for a reduction under an authority’s scheme; “application” means an application for a reduction under an authority’s scheme; “appropriate DWP office” means an office of the Department for Work and Pensions dealing with state pension credit or an office which is normally open to the public for the receipt of claims for income support, a jobseeker’s allowance or an employment and support allowance; “assessment period” means the period determined— (1) 1992 c.14. Section 13A was substituted by section 10(1) of the Local Government Finance Act 2012 (c.17), and Schedule 1B was inserted by section 10(2) and Schedule 4 to that Act. (2) 1996 c.18. Sections 75A and 75B were inserted by section 3 of the Employment Act 2002 (c.22) and amended by the Work and Families Act 2006 (c.18), Schedule 1, paragraphs 33 and 34. (3) 2004 c. 32. 4 (a) in relation to pensioners— (i) in relation to the earnings of a self-employed earner, in accordance with paragraph 14 of Schedule 1 for the purpose of calculating the weekly earnings of the applicant; or (ii) in relation to any other income, in accordance with paragraph 11 of Schedule 1 for the purpose of calculating the weekly income of the applicant; (b) in relation to persons who are not pensioners, such period as is set out in paragraphs 10 to 12 of Schedule 6 over which income falls to be calculated; “attendance allowance” means— (a) an attendance allowance under Part 3 of the SSCBA(1); (b) an increase of disablement pension under section 104 or 105 of the SSCBA; (c) a payment by virtue of article 14, 15, 16, 43 or 44 of the Personal Injuries (Civilians)