The Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2012

Made: 19 December 2012

Coming into force in accordance with regulation 1(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Title, commencement and application

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Default scheme

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE — Council Tax Reduction Schemes (Default Scheme) (Wales)

PART 1 — Introduction

Title

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 2 — Interpretation

Interpretation

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application of scheme: pensioners and persons who are not pensioners

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “couple”

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Polygamous marriages

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “family”

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Circumstances in which a person is to be treated as responsible or not responsible for another

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Households

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-dependants

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Remunerative work

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 3 — Procedural matters

Procedure for reduction applications and appeals against reduction decisions

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 4 — Classes of person entitled to a reduction under this scheme

Classes of person entitled to a reduction under this scheme

12

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class A: pensioners whose income is less than the applicable amount

13

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class B: pensioners whose income is greater than the applicable amount

14

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class C: persons who are not pensioners whose income is less than the applicable amount

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class D: persons who are not pensioners whose income is greater than the applicable amount

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Periods of absence from a dwelling

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 5 — Classes of person excluded from this scheme

Classes of person excluded from this scheme

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class of person excluded from this scheme: persons treated as not being in Great Britain

19

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class of person excluded from this scheme: persons subject to immigration control

20

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class of person excluded from this scheme: capital limit

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Class of person excluded from this scheme: students

22

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 6 — Applicable amounts for the purposes of calculating eligibility for a reduction under this scheme and amount of reduction

Applicable amounts: pensioners

23

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applicable amounts: persons who are not pensioners

24

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Polygamous marriages: persons who are not pensioners

25

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Applicable amount: persons who are not pensioners who have an award of universal credit

26

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 7 — Maximum council tax reduction for the purposes of calculating eligibility for a reduction under this scheme and amount of reduction

Maximum council tax reduction under this scheme: pensioners and persons who are not pensioners

27

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-dependant deductions: pensioners and persons who are not pensioners

28

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 8 — Amount of reduction under this scheme

Amount of reduction under this scheme: Classes A to D

29

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 9 — Income and capital for the purposes of calculating eligibility for a reduction under this scheme and amount of reduction

CHAPTER 1 — Income and capital: general

Calculation of income and capital: applicant’s family and polygamous marriages

30

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Circumstances in which capital and income of non-dependant is to be treated as applicant's

31

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2 — Income and capital: pensioners in receipt of guarantee credit or savings credit

Pensioners in receipt of guarantee credit

32

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of pensioner’s income in savings credit only cases

33

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 3 — Income and capital where there is an award of universal credit

Calculation of income and capital: persons who are not pensioners who have an award of universal credit

34

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 4 — Income: other pensioners

Calculation of income and capital where state pension credit is not payable: pensioners

35

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “income”: pensioners

36

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of weekly income: pensioners

37

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings of employed earners: pensioners

38

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of net earnings of employed earners: pensioners

39

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of earnings of self-employed earners: pensioners

40

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings of self-employed earners: pensioners

41

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notional income: pensioners

42

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income paid to third parties: pensioners

43

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 5 — Income: persons who are not pensioners

Average weekly earnings of employed earners: persons who are not pensioners

44

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Average weekly earnings of self-employed earners: persons who are not pensioners

45

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Average weekly income other than earnings: persons who are not pensioners

46

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of weekly income of employed earners: persons who are not pensioners

47

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings of employed earners: persons who are not pensioners

48

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of net earnings of employed earners: persons who are not pensioners

49

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earnings of self-employed earners: persons who are not pensioners

50

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of income other than earnings: persons who are not pensioners

51

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital treated as income: persons who are not pensioners

52

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notional income: persons who are not pensioners

53

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 6 — Income: pensioners and persons who are not pensioners

Calculation of income on a weekly basis

54

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of child care charges

55

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of average weekly income from tax credits

56

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disregard of changes in tax, contributions etc

57

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of net profit of self-employed earners

58

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of deduction of tax and contributions of self-employed earners

59

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 7 — Capital

Calculation of capital

60

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income treated as capital: persons who are not pensioners

61

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of capital in the United Kingdom

62

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of capital outside the United Kingdom

63

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notional capital

64

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Diminishing notional capital rule: pensioners

65

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Diminishing notional capital rule: persons who are not pensioners

66

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital jointly held

67

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of tariff income from capital: pensioners

68

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of tariff income from capital: persons who are not pensioners

69

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 10 — Students

CHAPTER 1 — General

Interpretation

70

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of students

71

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Students who are excluded from entitlement to a council tax reduction under this scheme

72

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2 — Income

Calculation of grant income

73

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Calculation of covenant income where a contribution is assessed

74

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Covenant income where no grant income or no contribution is assessed

75

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relationship with amounts to be disregarded under Schedule 7

76

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other amounts to be disregarded

77

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of student loans

78

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of fee loans

79

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of payments from access funds

80

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disregard of contribution

81

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Further disregard of student’s income

82

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income treated as capital

83

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Disregard of changes occurring during summer vacation

84

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 11 — Extended reductions

Extended reductions: pensioners

85

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions (qualifying contributory benefits): pensioners

86

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duration of extended reduction period (qualifying contributory benefits): pensioners

87

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of extended reduction (qualifying contributory benefits): pensioners

88

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions (qualifying contributory benefits)-movers: pensioners

89

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relationship between extended reduction (qualifying contributory benefits) and entitlement to a reduction by virtue of class A or B

90

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Continuing reductions where state pension credit claimed: pensioners

91

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions: persons who are not pensioners (general)

92

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions: persons who are not pensioners

93

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duration of extended reduction period: persons who are not pensioners

94

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of extended reduction: persons who are not pensioners

95

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions-movers: persons who are not pensioners

96

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relationship between extended reduction and entitlement to reduction by virtue of class C or D

97

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions (qualifying contributory benefits): persons who are not pensioners

98

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duration of extended reduction period (qualifying contributory benefits): persons who are not pensioners

99

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of extended reduction (qualifying contributory benefits): persons who are not pensioners

100

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions (qualifying contributory benefits)-movers: persons who are not pensioners

101

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relationship between extended reduction (qualifying contributory benefits) and entitlement to reduction by virtue of class C or D

102

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Extended reductions: movers into the authority’s area

103

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 12 — Period of entitlement and change of circumstances

Date on which entitlement begins

104

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date on which change of circumstances is to take effect

105

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Change of circumstances where state pension credit in payment

106

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 13 — Applications

Who may make an application

107

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Date on which an application is made

108

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Back-dating of applications: pensioners

109

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Back-dating of applications: persons who are not pensioners

110

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Evidence and information

111

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendment and withdrawal of application

112

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to notify changes of circumstances

113

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 14 — Decisions by authority

Decision by authority

114

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notification of decision

115

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 15 — Award or payment of reduction

The award or payment of a reduction under this scheme

116

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Signed

Carl Sargeant — Minister for Local Government and Communities, one of the Welsh Ministers — 19 December 2012

Explanatory note

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Footnotes

[^f00001]: 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(5) and Schedule 4 to that Act.

[^f00002]: 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.

[^f00003]: 2004 c. 32.