The Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013

• (a) the first day of the period in respect of which the person was first paid statutory sick pay, short-term incapacity benefit, an employment and support allowance or income support on the grounds of incapacity for work; or

• (b) the first day of the period in respect of which earnings are credited,

as the case may be.

• (4) In a case to which sub-paragraph (2)(d) or (e) applies, the period of 28 weeks begins on the day on which the person is first paid income support or on the first day of the period in respect of which earnings are credited, as the case may be.

• (5) Relevant child care charges are those charges for care to which sub-paragraphs (6) and (7) apply, and are to be calculated on a weekly basis in accordance with sub-paragraph (10).

• (6) The charges are paid by the applicant for care which is provided—

• (a) in the case of any child of the applicant’s family who is not disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following that child’s fifteenth birthday; or

• (b) in the case of any child of the applicant’s family who is disabled, in respect of the period beginning on that child’s date of birth and ending on the day preceding the first Monday in September following that child’s sixteenth birthday.

• (7) The charges are paid for care which is provided by one or more of the care providers listed in sub-paragraph (8) and are not paid—

• (a) in respect of the child’s compulsory education;

• (b) by an applicant to a partner or by a partner to an applicant in respect of any child for whom either or any of them is responsible in accordance with regulation 7 (circumstances in which a person is treated as responsible or not responsible for another); or

• (c) in respect of care provided by a relative of the child wholly or mainly in the child’s home.

• (8) The care to which sub-paragraph (7) refers may be provided—

• (a) out of school hours, by a school on school premises or by a local authority—

• (i) for children who are not disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their fifteenth birthday; or

• (ii) for children who are disabled in respect of the period beginning on their eighth birthday and ending on the day preceding the first Monday in September following their sixteenth birthday; or

• (b) by a child care provider approved in accordance with the Tax Credit (New Category of Child Care Provider) Regulations 1999¹³⁶; or

• (c) by persons registered under Part 2 of the Children and Families (Wales) Measure 2010¹³⁷; or

• (d) by a person who is excepted from registration under Part 2 of the Children and Families (Wales) Measure 2010 because the child care that person provides is in a school or establishment referred to in article 11, 12 or 14 of the Child Minding and Day Care Exceptions (Wales) Order 2010¹³⁸; or

• (e) by—

• (i) persons registered under section 59(1) of the Public Services Reform (Scotland) Act 2010¹³⁹; or

• (ii) local authorities registered under section 83(1) of that Act,

where the care provided is child minding or day care of children within the meaning of that Act; or

• (f) by a person prescribed in regulations made pursuant to section 12(4) of the Tax Credits Act 2002; or

• (g) by a person who is registered under Chapter 2 or 3 of Part 3 of the Childcare Act 2006¹⁴⁰; or

• (h) by any of the schools mentioned in section 34(2) of the Childcare Act 2006¹⁴¹ in circumstances where the requirement to register under Chapter 2 of Part 3 of that Act does not apply by virtue of section 34(2) of that Act; or

• (i) by any of the schools mentioned in section 53(2) of the Childcare Act 2006 in circumstances where the requirement to register under Chapter 3 of Part 3 of that Act does not apply by virtue of section 53(2) of that Act; or

• (j) by any of the establishments mentioned in section 18(5) of the Childcare Act 2006 in circumstances where the care is not included in the meaning of “childcare” for the purposes of Part 1 and Part 3 of that Act by virtue of section 18(5) of that Act; or

• (k) by a foster parent or kinship carer under the Fostering Services (England) Regulations 2011¹⁴², the Fostering Services (Wales) Regulations 2003 or any regulations made under sections 87 and 93 of the Social Services and Well-being (Wales) Act 2014 which make provision for the approval of local authority foster parents or the Looked After Children (Scotland) Regulations 2009¹⁴³ in relation to a child other than one whom the foster parent is fostering or kinship carer is looking after; or

• (l) by a person who is employed, or engaged under a contract for services, to provide care and support by the provider of a domiciliary support service, within the meaning of Part 1 of the Regulation and Inspection of Social Care (Wales) Act 2016;

• (m) by a person who is not a relative of the child wholly or mainly in the child’s home.

• (9) In sub-paragraphs (6) and (8)(a), “the first Monday in September” (“y dydd Llun cyntaf ym Medi”) means the Monday which first occurs in the month of September in any year.

• (10) Relevant child care charges must be estimated over such period, not exceeding a year, as is appropriate in order that the average weekly charge may be estimated accurately having regard to information as to the amount of that charge provided by the child minder or person providing the care.

• (11) For the purposes of sub-paragraph (1)(c) the other member of a couple is incapacitated where—

• (a) the applicant is a pensioner and the other member of the couple is aged not less than 80;

• (b) the applicant is a pensioner and the other member of the couple is aged less than 80, and—

• (i) an additional condition specified in paragraph 20 (additional condition for the disability premium) is treated as applying in the other member of the couple’s case; and

• (ii) the other member of the couple satisfies those conditions or would satisfy them but for that member of the couple being treated as capable of work by virtue of a determination made in accordance with regulations made under section 171E of the SSCBA;

• (c) the applicant’s applicable amount would include the support component or the work-related activity component on account of the other member having limited capability for work or the other member of the couple would be a member of the work-related activity group but for that other member being treated as not having limited capability for work by virtue of a determination made in accordance with the Employment and Support Allowance Regulations 2008 or the Employment and Support Allowance Regulations 2013;

• (d) the applicant is, or is treated as, incapable of work and has been so incapable, or has been so treated as incapable, of work in accordance with the provisions of, and regulations made under, Part 12A of the SSCBA¹⁴⁴ (incapacity for work) for a continuous period of not less than 196 days; and for this purpose any two or more separate periods separated by a break of not more than 56 days must be treated as one continuous period;

• (e) the applicant has, or is treated as having, limited capability for work and has had, or been treated as having, limited capability for work in accordance with the Employment and Support Allowance Regulations 2008 or the Employment and Support Allowance Regulations 2013 for a continuous period of not less than 196 days and for this purpose any two or more separate periods separated by a break of not more than 84 days must be treated as one continuous period;

• (f) there is payable in respect of the other member one or more of the following pensions or allowances—

• (i) long-term incapacity benefit or short-term incapacity benefit at the higher rate under Schedule 4 to the SSCBA;

• (ii) attendance allowance under section 64 of the SSCBA;

• (iii) severe disablement allowance under section 68 of the SSCBA;

• (iv) disability living allowance under section 71 of the SSCBA;

• (v) personal independence payment under Part 4 of the Welfare Reform Act 2012;

• (vi) an AFIP;

• (vii) increase of disablement pension under section 104 of the SSCBA;

• (viii) a pension increase paid as part of a war disablement pension or under an industrial injuries scheme which is analogous to an allowance or increase of disablement pension under sub-paragraph (ii), (iv), (v) or (vi) above;

• (ix) main phase employment and support allowance;

• (g) a pension or allowance to which sub-paragraph (vi) or (vii) of paragraph (f) refers was payable on account of the other member’s incapacity but has ceased to be payable in consequence of that other member becoming a patient, which in this paragraph means a person (other than a person who is serving a sentence of imprisonment or detention in a youth custody institution) who is regarded as receiving free in-patient treatment within the meaning of regulation 2(4) and (5) of the Social Security (Hospital In-Patients) Regulations 2005;

• (h) an attendance allowance under section 64 of the SSCBA or disability living allowance under section 71 of that Act would be payable to that person but for—

• (i) a suspension of benefit in accordance with regulations under section 113(2) of the SSCBA; or

• (ii) an abatement as a consequence of hospitalisation;

• (i) the daily living component of personal independence payment would be payable to that person but for a suspension of benefit in accordance with regulations under section 86 of the Welfare Reform Act 2012 (hospital in-patients);

• (j) an AFIP would be payable to that person but for a suspension of payment in accordance with any terms of the armed and reserve forces compensation scheme which allow for a suspension because a person is undergoing medical treatment in a hospital or similar institution;

• (k) paragraph (f), (g), (h) or (i) would apply to the other member if the legislative provisions referred to in those paragraphs were provisions under any corresponding enactment having effect in Northern Ireland; or

• (l) the other member has an invalid carriage or other vehicle provided to the other member by the Secretary of State under paragraph 9 of Schedule 1 to the National Health Service Act 2006¹⁴⁵ or under section 46 of the National Health Service (Scotland) Act 1978, or provided by the Department of Health, Social Services and Public Safety in Northern Ireland under article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972, or provided by the Welsh Ministers under section 5 of, and Schedule 1 to the National Health Service (Wales) Act 2006.

• (12) For the purposes of sub-paragraph (11), once sub-paragraph (11)(d) applies to the applicant, if the applicant then ceases, for a period of 56 days or less, to be incapable, or to be treated as incapable, of work, that sub-paragraph is, on the applicant again becoming so incapable, or so treated as incapable, of work at the end of that period, to immediately thereafter apply to the applicant for so long as the applicant remains incapable, or is treated as remaining incapable, of work.

• (13) For the purposes of sub-paragraph (11), once sub-paragraph (11)(e) applies to the applicant, if the applicant then ceases, for a period of 84 days or less, to have, or to be treated as having, limited capability for work, that sub-paragraph is, on the applicant again having, or being treated as having limited capability for work at the end of that period, immediately thereafter to apply to the applicant for so long as the applicant has, or is treated as having, limited capability for work.

• (14) For the purposes of sub-paragraphs (6) and (8)(a), a person is disabled if that person is a person—

• (a) to whom an attendance allowance or the care component of disability allowance is payable or would be payable but for—

• (i) a suspension of benefit in accordance with regulations under section 113(2) of the SSCBA; or

• (ii) an abatement as a consequence of hospitalisation;

• (b) to whom the daily living component of personal independence payment is payable or would be payable but for a suspension of benefit in accordance with regulations under section 86 of the Welfare Reform Act 2012 (hospital in-patients);

• (c) who—

• (i) is registered as blind in a register compiled under section 29 of the National Assistance Act 1948(welfare services);

• (ii) is registered as severely sight-impaired in a register established and maintained by a local authority under section 18(1) of the Social Services and Well-being (Wales) Act 2014;

• (iii) is registered as severely sight-impaired in a register established and maintained by a local authority under section 77(1) of the Care Act 2014; or

• (iv) in Scotland, has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994;

• (d) who ceased to be registered as blind or severely sight-impaired in such a register within the period beginning 28 weeks before the first Monday in September following that person’s fifteenth birthday and ending on the day preceding that person’s sixteenth birthday; or

• (e) to whom AFIP is payable.

• (15) For the purposes of sub-paragraph (1) a person on maternity leave, paternity leave , shared parental leave , parental bereavement leave , neonatal care leave or adoption leave is to be treated as if engaged in remunerative work for the period specified in sub-paragraph (16) (“the relevant period”) provided that—

• (a) in the week before the period of maternity leave, paternity leave , shared parental leave or adoption leave began the person was in remunerative work , parental bereavement leave , neonatal care leave;

• (b) the person is incurring relevant child care charges within the meaning of sub-paragraph (5); and

• (c) the person is entitled to either statutory maternity pay under section 164 of the SSCBA, ... statutory paternity pay by virtue of section 171ZA or 171ZB of that Act, additional statutory paternity pay by virtue of section 171ZEA or 171ZEB of that Act, statutory adoption pay by virtue of section 171ZL of that Act, maternity allowance under section 35 of that Act , statutory shared parental pay by virtue of section 171ZU or 171ZV of that Act , statutory parental bereavement pay by virtue of section 171ZZ6 of that Act , statutory neonatal care pay or qualifying support.

• (16) For the purposes of sub-paragraph (15) the relevant period begins on the day on which the person’s maternity leave, paternity leave , shared parental leave , parental bereavement leave , neonatal care leave or adoption leave commences and ends on—

• (a) the date that leave ends;

• (b) if no child care element of working tax credit is in payment on the date that entitlement to maternity allowance, qualifying support (if relevant), statutory maternity pay, ... statutory paternity pay , statutory shared parental pay , statutory parental bereavement pay , statutory neonatal care pay or statutory adoption pay ends, the date that entitlement ends; or

• (c) if a child care element of working tax credit is in payment on the date that entitlement to maternity allowance or qualifying support, statutory maternity pay, ... statutory paternity pay , statutory shared parental pay , statutory parental bereavement pay , statutory neonatal care pay or statutory adoption pay ends, the date that entitlement to that award of the child care element of the working tax credit ends;

whichever occurs first.

• (17) In sub-paragraphs (15) and (16)—

• (a) “qualifying support” (“cymhorthdal cymwys”) means income support to which that person is entitled by virtue of paragraph 14B of Schedule 1B to the Income Support (General) Regulations 1987¹⁴⁶; and

• (b) “child care element” (“elfen gofal plant”) of working tax credit means the element of working tax credit prescribed under section 12 of the Tax Credits Act 2002 (child care element).

• (18) In this paragraph “applicant” (“ceisydd”) does not include an applicant—

• (a) who has, or

• (b) who (jointly with a partner) has,

an award of universal credit.

Additional condition referred to in paragraph 19(11)(b)(i): disability : pensioners

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• (1) Subject to sub-paragraph (2), the additional condition referred to in paragraph 19(11)(b)(i) is that either—

• (a) the applicant or, as the case may be, the applicant’s partner—

• (i) is in receipt of one or more of the following benefits: attendance allowance, disability living allowance, personal independence payment, an AFIP, the disability element or the severe disability element of working tax credit as specified in regulation 20(1)(b) and (f) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002¹⁴⁷, mobility supplement, long-term incapacity benefit under Part 2 of the SSCBA or severe disablement allowance under Part 3 of that Act but, in the case of long-term incapacity benefit or severe disablement allowance, only where it is paid in respect of the applicant; or

• (ii) was in receipt of long-term incapacity benefit under Part 2 of the SSCBA when entitlement to that benefit ceased on account of the payment of a retirement pension under that Act or a state pension under Part 1 of the Pensions Act 2014 and the applicant has since remained continuously entitled to council tax benefit (for the period prior to 1 April 2013) or a reduction under an authority’s scheme (for the period after 1 April 2013) and, if the long-term incapacity benefit was payable to the applicant’s partner, the partner is still a member of the family; or

• (iii) was in receipt of attendance allowance or disability living allowance but payment of benefit has been suspended in accordance with regulations made under section 113(2) of the SSCBA or otherwise abated as a consequence of the applicant or the applicant’s partner becoming a patient within the meaning of paragraph 19(11)(g) (treatment of child care charges); or

• (iv) was in receipt of personal independence payment, but payment of that benefit has been suspended in accordance with section 86 of the Welfare Reform Act 2012 as a consequence of the applicant becoming a patient within the meaning of paragraph 19(11)(g) (treatment of child care charges); or

• (v) was in receipt of an AFIP but its payment has been suspended in accordance with any terms of the armed and reserve forces compensation scheme which allow for a suspension because a person is undergoing medical treatment in a hospital or similar institution; or

• (vi) is provided by the Secretary of State or an integrated care board with an invalid carriage or other vehicle under paragraph 9 of Schedule 1 to the National Health Service Act 2006 or, in Scotland, under section 46 of the National Health Service (Scotland) Act 1978 (provision of services by Scottish Ministers), or in Wales, under section 5 and Schedule 1 to the National Health Service (Wales) Act 2006, or in Northern Ireland, is provided with an invalid carriage or other vehicle by the Department of Health, Social Services and Public Safety under article 30(1) of the Health and Personal Social Services (Northern Ireland) Order 1972, or receives payments by way of grant from the Secretary of State under paragraph 10(3) of Schedule 1 to the Act of 2006¹⁴⁸ (provision of vehicles for disabled persons) or, in Scotland, by Scottish Ministers under section 46 of the Act of 1978; or

• (vii) is blind or severely sight-impaired and in consequence is registered as blind in a register compiled under section 29 of the National Assistance Act 1948 (welfare services), or is registered as severely sight-impaired in a register established and maintained by a local authority under section 18(1) of the Social Services and Well-being (Wales) Act 2014 or section 77(1) of the Care Act 2014, or in Scotland has been certified as blind and in consequence is registered in a register maintained by or on behalf of a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994; or

• (b) the applicant—

• (i) is, or is treated as, incapable of work in accordance with the provisions of, and regulations made under, Part 12A of the SSCBA (incapacity for work); and

• (ii) has been incapable, or has been treated as incapable, of work for a continuous period of not less than—

• (aa) in the case of an applicant who is terminally ill within the meaning of section 30B(4) of the SSCBA, 196 days;

• (bb) in any other case, 364 days.

• (2) For the purposes of sub-paragraph (1)(a)(vii), a person who has ceased to be registered as blind or severely sight-impaired on that person regaining that person’s eyesight is nevertheless to be treated as blind or severely sight-impaired and as satisfying the additional condition set out in that sub-paragraph for a period of 28 weeks following the date on which that person ceased to be so registered.

• (3) For the purposes of sub-paragraph (1)(b), where any two or more periods of incapacity are separated by a break of not more than 56 days, those periods must be treated as one continuous period.

• (4) For the purposes of this paragraph, a reference to a person who is or was in receipt of long-term incapacity benefit includes a person who is or was in receipt of short-term incapacity benefit at a rate equal to the long-term rate by virtue of section 30B(4)(a) of the SSCBA (short-term incapacity benefit for a person who is terminally ill), or who would be or would have been in receipt of short-term incapacity benefit at such a rate but for the fact that the rate of short-term incapacity benefit already payable to the person is or was equal to or greater than the long term rate.

• (5) In the case of an applicant who is a welfare to work beneficiary (a person to whom regulation 13A(1) of the Social Security (Incapacity for Work) (General) Regulations 1995 applies¹⁴⁹, and who again becomes incapable of work for the purposes of Part 12A of the SSCBA) the reference to a period of 56 days in sub-paragraph (3) must be treated as a reference to a period of 104 weeks.

Calculations of average weekly income from tax credits

21

• (1) This paragraph applies where an applicant receives a tax credit.

• (2) Where this paragraph applies, the period over which a tax credit is to be taken into account must be the period set out in sub-paragraph (3).

• (3) Where the instalment in respect of which payment of a tax credit is made is—

• (a) a daily instalment, the period is 1 day, being the day in respect of which the instalment is paid;

• (b) a weekly instalment, the period is 7 days, ending on the day on which the instalment is due to be paid;

• (c) a two weekly instalment, the period is 14 days, commencing 6 days before the day on which the instalment is due to be paid;

• (d) a four weekly instalment, the period is 28 days, ending on the day on which the instalment is due to be paid.

• (4) For the purposes of this paragraph “tax credit” (“credyd treth”) means child tax credit or working tax credit.

Disregard of changes in tax, contributions etc

22

In calculating the applicant’s income an authority may disregard any legislative change—

• (a) in the basic or other rates of income tax;

• (b) in the amount of any personal tax reliefs under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007;

• (c) in the rates of social security contributions payable under the SSCBA or in the lower earnings limit or upper earnings limit for Class 1 contributions under that Act, or the lower or upper limits applicable to Class 4 contributions under that Act ...;

• (d) in the amount of tax payable as a result of an increase in the weekly rate of Category A, B, C or D retirement pension or any addition thereto or any graduated pension payable under the SSCBA or a state pension under Part 1 of the Pensions Act 2014;

• (e) in the maximum rate of child tax credit or working tax credit,

for a period not exceeding 30 reduction weeks beginning with the reduction week immediately following the date from which the change is effective.

Calculation of net profit of self-employed earners

23

• (1) For the purposes of paragraph 18 (calculation of income on a weekly basis) the earnings of an applicant to be taken into account are—

• (a) in the case of a self-employed earner who is engaged in employment on that person’s own account, the net profit derived from that employment;

• (b) in the case of a self-employed earner who is a pensioner whose employment is carried on in partnership, that person’s share of the net profit derived from that employment, less—

• (i) an amount in respect of income tax and of social security contributions payable under the SSCBA calculated in accordance with paragraph 24 (calculation of deduction of tax and contributions of self-employed earners); and

• (ii) one-half of the amount calculated in accordance with sub-paragraph (11) in respect of any qualifying premium.

• (2) For the purposes of sub-paragraph (1)(a) the net profit of the employment must, except where sub-paragraph (8) applies, be calculated by taking into account the earnings of the employment over the assessment period less—

• (a) subject to sub-paragraphs (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of that employment;

• (b) an amount in respect of—

• (i) income tax; and

• (ii) social security contributions payable under the SSCBA,

calculated in accordance with paragraph 24 (calculation of deduction of tax and contributions of self-employed earners); and

• (c) one-half of the amount calculated in accordance with sub-paragraph (10) in respect of any qualifying premium.

• (3) For the purposes of sub-paragraph (1)(b) the net profit of the employment is to be calculated by taking into account the earnings of the employment over the assessment period less, subject to sub-paragraphs (4) to (7), any expenses wholly and exclusively incurred in that period for the purposes of the employment.

• (4) Subject to sub-paragraph (5), no deduction is to be made under paragraph (2)(a) or (3), in respect of—

• (a) any capital expenditure;

• (b) the depreciation of any capital asset;

• (c) any sum employed or intended to be employed in the setting up or expansion of the employment;

• (d) any loss incurred before the beginning of the assessment period;

• (e) the repayment of capital on any loan taken out for the purposes of the employment; and

• (f) any expenses incurred in providing business entertainment.

• (5) A deduction is to be made under sub-paragraph (2)(a) or (3) in respect of the repayment of capital on any loan used for—

• (a) the replacement in the course of business of equipment or machinery; or

• (b) the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair.

• (6) The authority must refuse to make a deduction in respect of any expenses under sub-paragraph (2)(a) or (3) where it is not satisfied given the nature and the amount of the expense that it has been reasonably incurred.

• (7) For the avoidance of doubt—

• (a) a deduction must not be made under sub-paragraph (2)(a) or (3) in respect of any sum unless it has been expended for the purposes of the business;

• (b) a deduction must be made thereunder in respect of—

• (i) the excess of any value added tax paid over value added tax received in the assessment period;

• (ii) any income expended in the repair of an existing business asset except to the extent that any sum is payable under an insurance policy for its repair;

• (iii) any payment of interest on a loan taken out for the purposes of the employment.

• (8) Where an applicant is engaged in employment as a child minder the net profit of the employment is to be one-third of the earnings of that employment, less—

• (a) an amount in respect of—

• (i) income tax; and

• (ii) social security contributions payable under the SSCBA,

calculated in accordance with paragraph 24 (calculation of deduction of tax and contributions for self-employed earners); and

• (b) one-half of the amount calculated in accordance with sub-paragraph (10) in respect of any qualifying premium.

• (9) For the avoidance of doubt where an applicant is engaged in employment as a self-employed earner and the applicant is also engaged in one or more other employments as a self-employed or employed earner any loss incurred in any one of the applicant’s employments must not be offset against the applicant’s earnings in any other of the applicant’s employments.

• (10) The amount in respect of any qualifying premium is to be calculated by multiplying the daily amount of the qualifying premium by the number equal to the number of days in the assessment period; and for the purposes of this paragraph the daily amount of the qualifying premium must be determined—

• (a) where the qualifying premium is payable monthly, by multiplying the amount of the qualifying premium by 12 and dividing the product by 365;

• (b) in any other case, by dividing the amount of the qualifying premium by the number equal to the number of days in the period to which the qualifying premium relates.

• (11) In this paragraph, “qualifying premium” (“premiwm cymwys”) means any premium which is payable periodically in respect of a personal pension scheme and is so payable on or after the date of application.

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

24

• (1) The amount to be deducted in respect of income tax under paragraph 23(1)(b)(i), (2)(b)(i) or (8)(a)(i) (calculation of net profit of self-employed earners) must be calculated—

• (a) on the basis of the amount of chargeable income, and

• (b) as if that income were assessable to income tax at the basic rate of tax applicable to the assessment period less only the personal reliefs to which the applicant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007¹⁵⁰ as is appropriate to the applicant’s circumstances.

• (2) But, if the assessment period is less than a year, the earnings to which the basic rate of tax is to be applied and the amount of the personal reliefs deductible under this paragraph must be calculated on a pro rata basis.

• (3) The amount to be deducted in respect of social security contributions under paragraph 23(1)(b)(i), (2)(b)(ii) or (8)(a)(ii) is the total of—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) the amount of Class 4 contributions (if any) which would be payable under section 15 of the SSCBA (Class 4 contributions recoverable under the Income Tax Acts) at the percentage rate applicable to the assessment period on so much of the chargeable income as exceeds the lower limit but does not exceed the upper limit of profits and gains applicable for the tax year applicable to the assessment period; but if the assessment period is less than a year, those limits must be reduced pro rata.

• (4) In this paragraph “chargeable income” (“incwm trethadwy”) means—

• (a) except where paragraph (b) applies, the earnings derived from the employment less any expenses deducted under paragraph 23(2)(a) or, as the case may be, paragraph 23(3);

• (b) in the case of employment as a child minder, one-third of the earnings of that employment.

CHAPTER 4 — Capital

Calculation of Capital

25

• (1) The capital of an applicant¹⁵¹ to be taken into account must be, subject to sub-paragraph (2), the whole of the applicant’s capital calculated in accordance with this Part.

• (2) There must be disregarded from the calculation of an applicant’s capital under sub-paragraph (1), any capital, where applicable, specified in Schedule 5 (capital disregards), in relation to pensioners.

• (3) In the case of an applicant who is a pensioner, the applicant’s capital is to be treated as including any payment made to the applicant by way of arrears of—

• (a) child tax credit;

• (b) working tax credit;

• (c) state pension credit,

if the payment was made in respect of a period for the whole or part of which a reduction under an authority’s scheme was allowed before those arrears were paid.

Calculation of capital in the United Kingdom

26

Capital which an applicant possesses in the United Kingdom is to be calculated at its current market or surrender value less—

• (a) where there would be expenses attributable to the sale, 10 per cent; and

• (b) the amount of any encumbrance secured on it.

Calculation of capital outside the United Kingdom

27

Capital which an applicant possesses in a country outside the United Kingdom is to be calculated—

• (a) in a case where there is no prohibition in that country against the transfer to the United Kingdom of an amount equal to its current market or surrender value in that country, at that value;

• (b) in a case where there is such a prohibition, at the price which it would realise if sold in the United Kingdom to a willing buyer,

less, where there would be expenses attributable to sale, 10 per cent and the amount of any encumbrances secured on it.

Notional capital

28

• (1) An applicant is to be treated as possessing capital of which the applicant has deprived himself or herself for the purpose of securing entitlement to a reduction or increasing the amount of that reduction except to the extent that that capital is reduced in accordance with paragraph 29 (diminishing notional capital rule).

• (2) An applicant who is a pensioner who disposes of capital for the purpose of—

• (a) reducing or paying a debt owed by the applicant; or

• (b) purchasing goods or services if the expenditure was reasonable in the circumstances of the applicant’s case,

is to be regarded as not depriving himself or herself of it.

• (3) Where an applicant stands in relation to a company in a position analogous to that of a sole owner or partner in the business of that company, the applicant may be treated as if the applicant were such sole owner or partner and in such a case —

• (a) the value of the applicant’s holding in that company must, notwithstanding paragraph 25 (calculation of capital) be disregarded; and

• (b) the applicant must, subject to sub-paragraph (4), be treated as possessing an amount of capital equal to the value or, as the case may be, the applicant’s share of the value of the capital of that company and the foregoing provisions of this Chapter apply for the purposes of calculating that amount as if it were actual capital which the applicant does possess.

• (4) For so long as the applicant undertakes activities in the course of the business of the company, the amount which the applicant is treated as possessing under sub-paragraph (3) is to be disregarded.

• (5) Where an applicant is treated as possessing capital under sub-paragraph (1), the foregoing provisions of this Chapter apply for the purposes of calculating its amount as if it were actual capital which the applicant does possess.

Diminishing notional capital rule: pensioners

29

• (1) Where an applicant who is a pensioner is treated as possessing capital under paragraph 28(1) (notional capital), the amount which the applicant is treated as possessing—

• (a) in the case of a week that is subsequent to—

• (i) the relevant week in respect of which the conditions set out in sub-paragraph (2) are satisfied; or

• (ii) a week which follows that relevant week and which satisfies those conditions,

is to be reduced by an amount determined under sub-paragraph (3);

• (b) in the case of a week in respect of which sub-paragraph (1)(a) does not apply but where—

• (i) that week is a week subsequent to the relevant week; and

• (ii) that relevant week is a week in which the condition in sub-paragraph (4) is satisfied,

is to be reduced by the amount determined under sub-paragraph (5).

• (2) This sub-paragraph applies to a reduction week where the applicant satisfies the conditions that—

• (a) the applicant is in receipt of a reduction in council tax under an authority’s scheme; and

• (b) but for paragraph 28(1), the applicant would have received a greater reduction in council tax under an authority’s scheme in that week.

• (3) In a case to which sub-paragraph (2) applies, the amount of the reduction in the amount of capital the applicant is treated as possessing for the purposes of sub-paragraph (1)(a) must be equal to the aggregate of—

• (a) an amount equal to the additional amount of the reduction in council tax to which sub-paragraph (2)(b) refers;

• (b) where the applicant has also claimed state pension credit, the amount of any state pension credit or any additional amount of state pension credit to which the applicant would have been entitled in respect of the reduction week to which sub-paragraph (2) refers but for the application of regulation 21(1) of the State Pension Credit Regulations 2002¹⁵² (notional capital);

• (c) where the applicant has also claimed housing benefit, the amount of any housing benefit or any additional amount of housing benefit to which the applicant would have been entitled in respect of the whole or part of the reduction week to which sub-paragraph (2) refers but for the application of regulation 47(1) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006¹⁵³ (notional capital);

• (d) where the applicant has also claimed a jobseeker’s allowance, the amount of an income-based jobseeker’s allowance to which the applicant would have been entitled in respect of the reduction week to which sub-paragraph (2) refers but for the application of regulation 113 of the Jobseeker’s Allowance Regulations 1996¹⁵⁴ (notional capital); and

• (e) where the applicant has also claimed an employment and support allowance, the amount of an income related employment and support allowance to which the applicant would have been entitled in respect of the reduction week to which sub-paragraph (2) refers but for the application of regulation 115 of the Employment and Support Allowance Regulations 2008¹⁵⁵ (notional capital).

• (4) Subject to sub-paragraph (7), for the purposes of sub-paragraph (1)(b) the condition is that the applicant is a pensioner and would have been entitled to a reduction in council tax under an authority’s scheme in the relevant week but for paragraph 28(1).

• (5) In such a case the amount of the reduction in the amount of capital the applicant is treated as possessing for the purposes of sub-paragraph (1)(b) is equal to the aggregate of—

• (a) the amount of the reduction in council tax to which the applicant would have been entitled in the relevant week but for paragraph 28(1);

• (b) if the applicant would, but for regulation 21 of the State Pension Credit Regulations 2002, have been entitled to state pension credit in respect of the benefit week, within the meaning of regulation 1(2) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which the applicant would have been entitled;

• (c) if the applicant would, but for regulation 47(1) of the Housing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006, have been entitled to housing benefit or to an additional amount of housing benefit in respect of the benefit week which includes the last day of the relevant week, the amount which is equal to—

• (i) in a case where no housing benefit is payable, the amount to which the applicant would have been entitled; or

• (ii) in any other case, the amount equal to the additional amount of housing benefit to which the applicant would have been entitled;

• (d) if the applicant would, but for regulation 113 of the Jobseeker’s Allowance Regulations 1996, have been entitled to an income-based jobseeker’s allowance in respect of the benefit week, within the meaning of regulation 1(3) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which the applicant would have been entitled; and

• (e) if the applicant would, but for regulation 115 of the Employment and Support Allowance Regulations 2008, have been entitled to an income-related employment and support allowance in respect of the benefit week, within the meaning of regulation 2(1) of those Regulations (interpretation), which includes the last day of the relevant week, the amount to which the applicant would have been entitled.

• (6) But if the amount mentioned in paragraph (a), (b), (c), (d) or (e) of sub-paragraph (5) (“the relevant amount”) is in respect of a part-week, the amount that is to be taken into account under that paragraph is to be determined by—

• (a) dividing the relevant amount by the number equal to the number of days in that part-week, and

• (b) multiplying the result of that calculation by 7.

• (7) The amount determined under sub-paragraph (5) is to be re-determined under that sub-paragraph if the applicant makes a further application for a reduction in council tax and the conditions in sub-paragraph (8) are satisfied, and in such a case—

• (a) paragraphs (a) to (e) of sub-paragraph (5) apply as if for the words “relevant week” there were substituted the words “relevant subsequent week”; and

• (b) subject to sub-paragraph (9), the amount as re-determined has effect from the first week following the relevant subsequent week in question.

• (8) The conditions are that—

• (a) a further application is made 26 or more weeks after—

• (i) the date on which the applicant made an application for a reduction in council tax in respect of which the applicant was first treated as possessing the capital in question under paragraph 28(1);

• (ii) in a case where there has been at least one re-determination in accordance with sub-paragraph (7), the date on which the applicant last made an application for a reduction in council tax which resulted in the weekly amount being re-determined, or

• (iii) the date on which the applicant last ceased to be entitled to a reduction in council tax under the authority’s scheme,

whichever last occurred; and

• (b) the applicant would have been entitled to a reduction in council tax under an authority’s scheme but for paragraph 28(1).

• (9) The amount as re-determined pursuant to sub-paragraph (7) must not have effect if it is less than the amount which applied in that case immediately before the re-determination and in such a case the higher amount must continue to have effect.

• (10) For the purposes of this paragraph—

• “part-week” (“rhan-wythnos”)— in relation to an amount mentioned in sub-paragraph (5)(a), means a period of less than a week for which a reduction in council tax under an authority’s scheme is allowed; in relation to an amount mentioned in sub-paragraph (5)(b), means a period of less than a week for which housing benefit is payable; in relation to an amount mentioned in sub-paragraph (5)(c), (d) or (e), means— a period of less than a week which is the whole period for which income support, an income-related employment and support allowance or, as the case may be, an income-based jobseeker’s allowance is payable; and any other period of less than a week for which it is payable;

• “relevant week” (“wythnos berthnasol”) means the reduction week or part-week in which the capital in question of which the applicant has deprived himself or herself within the meaning of paragraph 28(1)— was first taken into account for the purpose of determining the applicant’s entitlement to a reduction under an authority’s scheme; or was taken into account on a subsequent occasion for the purpose of determining or re-determining the applicant’s entitlement to a reduction on that subsequent occasion and that determination or redetermination resulted in the applicant beginning to receive, or ceasing to receive, a reduction under an authority’s scheme; and where more than one reduction week is identified by reference to paragraphs (a) and (b) of this definition, the later or latest such reduction week or, as the case may be, the later or latest such part-week is the relevant week;

• “relevant subsequent week” (“wythnos ddilynol berthnasol”) means the reduction week or part-week which includes the day on which the further application or, if more than one further application has been made, the last such application was made.

Capital jointly held: pensioners

30

Except where an applicant possesses capital which is disregarded under paragraph 28(3) (notional capital), where an applicant and one or more persons are beneficially entitled in possession to any capital asset they must be treated, in the absence of evidence to the contrary, as if each of them were entitled in possession to the whole beneficial interest therein in an equal share and the foregoing provisions of this Chapter apply for the purposes of calculating the amount of capital which the applicant is treated as possessing as if it were actual capital which the applicant does possess.

Calculation of tariff income from capital: pensioners

31

The capital of an applicant who is a pensioner, calculated in accordance with this Schedule, is to be treated as if it were a weekly income of—

• (a) £1 for each £500 in excess of £10,000 but not exceeding £16,000; and

• (b) £1 for any excess which is not a complete £500.

PART 5 — Extended reductions: pensioners

Extended reductions (qualifying contributory benefits): pensioners

32

• (1) Except in the case of an applicant who is in receipt of state pension credit, an applicant who is entitled to a reduction under an authority’s scheme (by virtue of the falling within class A or B) is to be entitled to an extended reduction (qualifying contributory benefits) where—

• (a) the applicant or the applicant’s partner was entitled to a qualifying contributory benefit;

• (b) entitlement to a qualifying contributory benefit ceased because the applicant or the applicant’s partner—

• (i) commenced employment as an employed or self-employed earner;

• (ii) increased their earnings from such employment; or

• (iii) increased the number of hours worked in such employment,

and that employment is or, as the case may be, those increased earnings or increased number of hours are expected to last five weeks or more;

• (c) the applicant or the applicant’s partner had been entitled to and in receipt of a qualifying contributory benefit or a combination of qualifying contributory benefits for a continuous period of at least 26 weeks before the day on which the entitlement to a qualifying contributory benefit ceased; and

• (d) the applicant or the applicant’s partner was not entitled to and not in receipt of a qualifying income-related benefit in the last reduction week in which the applicant, or the applicant’s partner, was entitled to a qualifying contributory benefit.

• (2) An applicant must be treated as entitled to a reduction under an authority’s scheme by virtue of falling within class A or B where—

• (a) the applicant ceased to be entitled to a reduction under the authority’s scheme because the applicant vacated the dwelling in which the applicant was resident;

• (b) the day on which the applicant vacated the dwelling was either in the week in which entitlement to a qualifying contributory benefit ceased, or in the preceding week; and

• (c) entitlement to the qualifying contributory benefit ceased in any of the circumstances listed in sub-paragraph (1)(b).

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

33

• (1) Where an applicant is entitled to an extended reduction (qualifying contributory benefits), the extended reduction period starts on the day immediately following the day in which the applicant, or the applicant’s partner, ceased to be entitled to a qualifying contributory benefit.

• (2) The extended reduction period ends—

• (a) at the end of a period of four weeks; or

• (b) on the date on which the applicant who is receiving the extended reduction (qualifying contributory benefits) has no liability for council tax, if that occurs first.

Amount of extended reduction (qualifying contributory benefits): pensioners

34

• (1) For any week during the extended reduction period the amount of the extended reduction (qualifying contributory benefits) the applicant is entitled to is the greater of—

• (a) the amount of council tax reduction to which the applicant was entitled by virtue of falling within class A or B in the last reduction week before the applicant or the applicant’s partner ceased to be entitled to a qualifying contributory benefit;

• (b) the amount of reduction under an authority’s scheme to which the applicant would be entitled by virtue of falling within class A or B for any reduction week during the extended reduction period, if paragraph 32 (extended reductions (qualifying contributory benefits): pensioners) did not apply to the applicant; or

• (c) the amount of reduction under an authority’s scheme to which the applicant’s partner would be entitled by virtue of falling within class A or B, if paragraph 32 did not apply to the applicant.

• (2) Sub-paragraph (1) does not apply in the case of a mover.

• (3) Where an applicant is in receipt of an extended reduction (qualifying contributory benefits) under this paragraph and the applicant’s partner makes an application for a reduction under an authority’s scheme, an authority must not award a reduction in pursuance of that application during the extended reduction period.

Extended reductions (qualifying contributory benefits) — movers: pensioners

35

• (1) This paragraph applies—

• (a) to a mover¹⁵⁶; and

• (b) from the Monday following the day of the move.

• (2) The amount of the extended reduction (qualifying contributory benefit) awarded from the Monday from which this paragraph applies until the end of the extended reduction period is the amount of reduction under the authority’s (“the first authority”) scheme which was awarded to the mover for the last reduction week before the mover, or the mover’s partner, ceased to be entitled to a qualifying contributory benefit.

• (3) Where a mover’s liability to pay council tax in respect of the new dwelling is to a second authority, the extended reduction (qualifying contributory benefits) may take the form of a payment from the first authority to—

• (a) the second authority; or

• (b) the mover directly.

Relationship between extended reduction (qualifying contributory benefits) and entitlement to a council tax reduction by virtue of falling within class A or B: pensioners

36

• (1) Where an applicant’s reduction under an authority’s scheme would have ended when the applicant ceased to be entitled to a qualifying contributory benefit in the circumstances listed in paragraph 32(1)(b), that reduction does not cease to have effect until the end of the extended reduction period.

• (2) Part 6 (period of entitlement and changes of circumstances) will not apply to any extended reduction (qualifying contributory benefits) payable in accordance with paragraph 34(1)(a) or paragraph 35 (amount of extended reduction — movers: pensioners).

Continuing reductions where state pension credit claimed: pensioners

37

• (1) This paragraph applies where—

• (a) the applicant is entitled to a reduction under an authority’s scheme;

• (b) sub-paragraph (2) is satisfied; and

• (c) either—

• (i) the applicant has attained the qualifying age for state pension credit or, if the applicant’s entitlement to income-based jobseeker’s allowance or income-related employment and support allowance continued beyond that age, has attained the age of 65; or

• (ii) the applicant’s partner has actually claimed state pension credit.

• (2) This sub-paragraph is only satisfied if the Secretary of State has certified to the authority that the applicant’s partner has actually claimed state pension credit or that—

• (a) the applicant’s award of—

• (i) income support has terminated because the applicant has attained the qualifying age for state pension credit; or

• (ii) income-based jobseeker’s allowance or income-related employment and support allowance has terminated because the applicant has attained the qualifying age for state pension credit or the age of 65; and

• (b) the applicant has claimed or is treated as having claimed or is required to make a claim for state pension credit.

• (3) Subject to sub-paragraph (4), in a case to which this paragraph applies, a reduction under an authority’s scheme is to continue to be awarded for the period of 4 weeks beginning on the day following the day the applicant’s entitlement to income support or, as the case may be, income-based jobseeker’s allowance, or income related employment and support allowance, ceased, if and for so long as the applicant otherwise satisfies the conditions for entitlement to a reduction under an authority’s scheme.

• (4) Where a reduction under an authority’s scheme is awarded for the period of 4 weeks in accordance with sub-paragraph (3) above, and the last day of that period falls on a day other than the last day of a reduction week, then the reduction under the scheme is to continue to be awarded until the end of the reduction week in which the last day of that period falls.

• (5) Throughout the period of 4 weeks specified in sub-paragraph (3) and any further period specified in sub-paragraph (4)—

• (a) the whole of the income and capital of the applicant is to be disregarded;

• (b) the applicant’s maximum council tax reduction is to be that which was applicable in the applicant’s case immediately before that period commenced.

• (6) The maximum council tax reduction is to be calculated in accordance with paragraph 2(1) if, since the date it was last calculated—

• (a) the applicant’s council tax liability has increased; or

• (b) a change in the deduction under paragraph 3 (non-dependant deductions) falls to be made.

Extended reductions: movers into an authority’s area

38

• (1) Where—

• (a) an application is made to an authority for a reduction under an authority’s scheme, and

• (b) the applicant, or the partner of the applicant, is in receipt of an extended reduction from—

• (i) another billing authority in Wales;

• (ii) a billing authority in England;

• (iii) a local authority in Scotland, or

• (iv) a local authority in Northern Ireland,

the billing authority must reduce any reduction to which the applicant is entitled under its scheme by the amount of that extended reduction.

• (2) For the purposes of this paragraph “billing authority” (“awdurdod bilio”) means a billing authority as defined in section 1 of the 1992 Act.

PART 6 — Period of entitlement and change of circumstances

Date on which entitlement begins

39

Any person by whom or in respect of whom an application for a reduction under an authority’s scheme is made and who is otherwise entitled to that reduction is to be so entitled from the date on which the application is treated as made in accordance with paragraph 2 of Schedule 13 (date on which application is made).

Date on which change of circumstances is to take effect

40

• (1) Except in cases where paragraph 22 (disregard of changes in tax, contributions, etc) applies and subject to the following provisions of this paragraph and paragraph 41 (change of circumstances where state pension credit in payment), a change of circumstances which affects entitlement to, or the amount of, a reduction under an authority’s scheme (“change of circumstances”), takes effect from the first day on which the change actually occurs.

• (2) Where that change is cessation of entitlement to any benefit under the benefit Acts, the date on which the change actually occurs will be the day immediately following the last day of entitlement to that benefit.

• (3) Subject to sub-paragraph (4), where the change of circumstances is a change in the amount of council tax payable, it takes effect from the day on which it actually occurs.

• (4) Where the change of circumstances is a change in the amount a person is liable to pay in respect of council tax in consequence of regulations under section 13 of the 1992 Act (reduced amounts of council tax) or changes in the discount to which a dwelling may be subject under section 11E(1) or 11F(2) of that Act, it is to take effect from the day on which the change in amount has effect.

• (5) Where the change of circumstances is the applicant’s acquisition of a partner, the change takes effect on the day on which the acquisition takes place.

• (6) Where the change of circumstances is the death of an applicant’s partner or their separation, it takes effect on the day the death or separation occurs.

• (7) Where the change of circumstances is that income, or an increase in the amount of income, other than a benefit or an increase in the amount of a benefit under the SSCBA, is paid in respect of a past period and there was no entitlement to income of that amount during that period, the change of circumstances is to take effect from the first day on which such income, had it been paid in that period at intervals appropriate to that income, would have fallen to be taken into account for the purposes of an authority’s scheme.

• (8) Without prejudice to sub-paragraph (7), where the change of circumstances is the payment of income, or arrears of income, in respect of a past period, the change of circumstances takes effect from the first day on which such income, had it been timeously paid in that period at intervals appropriate to that income, would have fallen to be taken into account for the purposes of an authority’s scheme.

Change of circumstances where the state pension credit payment in payment

41

• (1) Sub-paragraphs (2) to (4) apply where—

• (a) the applicant is in receipt of state pension credit;

• (b) the amount of state pension credit awarded to the applicant is changed in consequence of a change in the applicant’s circumstances or the correction of an official error; and

• (c) the change in the amount of state pension credit payable to the applicant results in a change in the amount of a reduction the applicant receives under an authority’s scheme.

• (2) Where the change of circumstance is that an increase in the amount of state pension credit payable to the applicant results in—

• (a) an increase in the reduction the applicant receives under an authority’s scheme, the change takes effect on the day on which the state pension credit becomes payable at the increased rate; or

• (b) a decrease in the reduction the applicant receives under an authority’s scheme, the change takes effect on the day on which—

• (i) state pension credit becomes payable at the increased rate; or

• (ii) the authority receives notification from the Secretary of State of the increase in the amount of state pension credit,

whichever is the later.

• (3) Where the change of circumstance (“the relevant change”) is that the applicant’s state pension credit has been reduced and in consequence the reduction the applicant receives under an authority’s scheme reduces—

• (a) in a case where the applicant’s state pension credit has been reduced because the applicant failed to notify the Secretary of State timeously of a change of circumstances, the relevant change takes effect on the day on which state pension credit was reduced; or

• (b) in any other case the relevant change takes effect from the first day on which—

• (i) the state pension credit is reduced; or

• (ii) the authority receives notification from the Secretary of State of the reduction in the amount of state pension credit,

whichever is the later.

• (4) Where the change of circumstance is that the applicant’s state pension credit is reduced and in consequence of the change, the amount of reduction the applicant receives under an authority’s scheme is increased, the change takes effect on the day on which state pension credit becomes payable at the reduced rate.

• (5) Where a change of circumstance occurs in that an award of state pension credit has been made to the applicant or the applicant’s partner and this would result in a decrease in the amount of reduction the applicant receives under an authority’s scheme, the change takes effect on the day on which —

• (a) entitlement to state credit pension begins; or

• (b) the authority receives notification from the Secretary of State of the award of state pension credit,

whichever is the later.

• (6) Where, in the case of an applicant who, or whose partner, is or has been awarded state pension credit comprising only the savings credit, there is—

• (a) a change of circumstances of a kind described in any of sub-paragraphs (2) to (5) which results from a relevant calculation or estimate; and

• (b) a change of circumstances which is a relevant determination,

each of which results in a change in the amount of reduction the applicant receives under an authority’s scheme, the change of circumstances referred to in paragraph (b) takes effect from the day specified in sub-paragraph (2), (3), (4) or (5) as the case may be, in relation to the change referred to in paragraph (a).

• (7) Where a change of circumstance occurs in that a guarantee credit has been awarded to the applicant or the applicant’s partner and this would result in an increase in the amount of a reduction the applicant receives under an authority’s scheme, the change takes effect on the day on which the guarantee credit is first payable.

• (8) Where a change of circumstances would, but for this sub-paragraph, take effect under the preceding provisions of this paragraph within the 4 week period specified in paragraph 37 (continuing reductions where state pension credit claimed), that change takes effect on the first day after the expiry of the 4 week period.

• (9) In this paragraph—

• “official error” (“camgymeriad swyddogol”) means an error made by— the authority or a person— authorised to carry out any function of the authority relating to its scheme; or providing services relating to an authority’s scheme directly or indirectly to the authority; or an officer of— the Department for Work and Pensions; or the Commissioners for Revenue and Customs, acting as such, but excludes any error caused wholly or partly by any person or body not specified in paragraph (a) or (b) of this definition and any error of law which is shown to have been an error only by virtue of a subsequent decision of the court;

• “relevant calculation or estimate” (“cyfrifiad neu amcangyfrif perthnasol”) means the calculation or estimate made by the Secretary of State of the applicant’s or, as the case may be, the applicant’s partner’s income and capital for the purposes of the award of state pension credit;

• “relevant determination” (“penderfyniad perthnasol”) means a change in the determination by the authority of the applicant’s income and capital using the relevant calculation or estimate, in accordance with paragraph 8(1).

SCHEDULE 2 — Applicable amounts: pensioners

PART 1 — Personal allowances

Personal allowance

1

The amount specified in column (2) below in respect of each person or couple specified in column (1) is the amount specified for the purposes of paragraph 1(1)(a) of Schedule 1.

Column (1)	Column (2)
Person, couple or polygamous marriage	Amount
1Single applicant or lone parent who has attained pensionable age	£256.00
2Couple where one or both members have attained pensionable age	£383.35
3If the applicant is a member of a polygamous marriage and one or more members of the marriage have attained pensionable age—afor the applicant and the other party to the marriage;bfor each additional spouse who is a member of the same household as the applicant.	£383.35£127.35

Child or young person amounts

2

• (1) The amounts specified in column (2) below in respect of each person specified in column (1) are the amounts, for the relevant period specified in column (1), specified for the purposes of paragraph 1(1)(b) of Schedule 1.

Column (1)Child or young person	Column (2)Amount
Person in respect of the period —
beginning on that person’s date of birth and ending on the day preceding the first Monday in September following that person’s sixteenth birthday;	£87.88;
beginning on the first Monday in September following that person’s sixteenth birthday and ending on the day preceding that person’s twentieth birthday.	£87.88.

• (2) In column (1) of the table in sub-paragraph (1) “the first Monday in September” (“y dydd Llun cyntaf ym Medi”) means the Monday which first occurs in the month of September in any year.

PART 2 — Family premium

Family premium

3

The amount for the purposes of paragraph 1(1)(c) of Schedule 1 in respect of a family of which at least one member is a child or young person is £20.22.

PART 3 — Premiums

4

The premiums specified in Part 4 are, for the purposes of paragraph 1(1)(d) of Schedule 1, to be applicable to an applicant who satisfies the condition specified in this Part in respect of that premium.

5

• (1) Subject to sub-paragraph (2), for the purposes of this Part of this Schedule, once a premium is applicable to an applicant under this Part, a person is to be treated as being in receipt of any benefit for—

• (a) in the case of a benefit to which the Social Security (Overlapping Benefits) Regulations 1979¹⁵⁷ applies, any period during which, apart from the provision of those Regulations, that person would be in receipt of that benefit; and

• (b) any period spent by a person in undertaking a course of training or instruction provided or approved by the Secretary of State or the Welsh Ministers under section 2 of the Employment and Training Act 1973¹⁵⁸, or by Skills Development Scotland, Scottish Enterprise or Highland and Islands Enterprise under section 2 of the Enterprise and New Towns (Scotland) Act 1990¹⁵⁹ or for any period during which that person is in receipt of a training allowance.

• (2) For the purposes of the carer premium under paragraph 9, a person is to be treated as being in receipt of a carer’s allowance by virtue of sub-paragraph (1)(a) only if and for so long as the person in respect of whose care the allowance has been claimed remains in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the SSCBA, or the daily living component of personal independence payment paid at either rate prescribed in accordance with Part 4 of the Welfare Reform Act 2012 or an AFIP.

Severe disability premium

6

• (1) The condition is that the applicant is a severely disabled person.

• (2) For the purposes of sub-paragraph (1), an applicant is to be treated as being a severely disabled person if, and only if—

• (a) in the case of a single applicant, a lone parent or an applicant who is treated as having no partner in consequence of sub-paragraph (3)—

• (i) the applicant is in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the SSCBA, or the daily living component of personal independence payment paid at either rate prescribed in accordance with Part 4 of the Welfare Reform Act 2012 or an AFIP; and

• (ii) subject to sub-paragraph (6), the applicant has no non-dependants aged 18 or over normally residing with the applicant or with whom the applicant is normally residing; and

• (iii) no person is entitled to, and in receipt of, a carer’s allowance under section 70 of the SSCBA or has an award of universal credit which includes the carer element under regulation 29 of the Universal Credit Regulations 2013 in respect of caring for the applicant;

• (b) in the case of an applicant who has a partner—

• (i) the applicant is in receipt of attendance allowance, or the care component of disability living allowance at the highest or middle rate prescribed in accordance with section 72(3) of the SSCBA, or the daily living component of personal independence payment paid at either rate prescribed in accordance with Part 4 of the Welfare Reform Act 2012, or an AFIP;

• (ii) the applicant’s partner is also in receipt of such an allowance or, if the applicant is a member of a polygamous marriage, each other member of that marriage is in receipt of such an allowance; and

• (iii) subject to sub-paragraph (6), the applicant has no non-dependants aged 18 or over normally residing with the applicant or with whom the applicant is normally residing,

and either a person is entitled to and in receipt of a carer’s allowance or has an award of universal credit which includes the carer element in respect of caring for only one of the couple or, if the applicant is a member of a polygamous marriage, for one or more but not all the members of the marriage, or as the case may be, no person is entitled to and in receipt of such an allowance or has such an award of universal credit in respect of caring for either member of a couple or any of the members of the marriage.

• (3) Where an applicant has a partner who does not satisfy the condition in sub-paragraph (2)(b)(ii), and that partner is blind or severely sight-impaired or is treated as such within the meaning of sub-paragraph (4), that partner is to be treated for the purposes of sub-paragraph (2) as if that partner were not a partner of the applicant.

• (4) For the purposes of sub-paragraph (3), a person is blind or severely sight-impaired if that person—

• (a) is registered as blind in a register compiled under section 29 of the National Assistance Act 1948 (welfare services);

• (b) is registered as severely sight-impaired in a register established and maintained by a local authority under section 18(1) of the Social Services and Well-being (Wales) Act 2014;

• (c) is registered as severely sight-impaired in a register established and maintained by a local authority under section 77(1) of the Care Act 2014; or