Legalize / United Kingdom / Wales / Welsh-Statutory-Instrument

The Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013

Type Welsh-Statutory-Instrument

Publication 2013-11-27

Last updated 2026-01-26

State In force

Jurisdiction Wales

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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“service user group” (“grŵp defnyddwyr gwasanaeth”) means a group of individuals that is consulted by or on behalf of—a Health Board, Special Health Board or the Common Services Agency for Scottish Health in consequence of a function under section 2B of the National Health Service (Scotland) Act 1978³⁸;a landlord authority³⁹ in consequence of a function under section 105 of the Housing Act 1985⁴⁰;a public authority in Northern Ireland in consequence of a function under section 49A of the Disability Discrimination Act 1995[^f00047]:a public authority in consequence of a function under section 149 of the Equality Act 2010 (public authority general duty)⁴²;a best value authority in consequence of a function under section 3 of the Local Government Act 1999⁴³;a Welsh improvement authority in consequence of a function under section 5 of the Local Government (Wales) Measure 2009⁴⁴;a local authority landlord or registered social landlord in consequence of a function under section 53 of the Housing (Scotland) Act 2001⁴⁵;a relevant English body or a relevant Welsh body in consequence of a function under section 242 of the National Health Service Act 2006⁴⁶;a Local Health Board in consequence of a function under section 183 of the National Health Service (Wales) Act 2006⁴⁷;the Care Quality Commission in exercise of a function under sections 4 or 5 of the Health and Social Care Act 2008⁴⁸;the regulator or a private registered provider of social housing in consequence of a function under sections 98, 193 or 196 of the Housing and Regeneration Act 2008⁴⁹; ora public or local authority in Great Britain in consequence of a function conferred under any other enactment,for the purposes of monitoring and advising on a policy of that body or authority which affects or may affect persons in the group, or of monitoring or advising on services provided by that body or authority which are used (or may potentially be used) by those persons;

“shared parental leave” (“absenoldebrhiant a rennir”) means leave by virtue of section 75E or 75G of the Employment Rights Act 1996;

“single applicant” (“ceisydd sengl”) means an applicant who neither has a partner nor is a lone parent;

“the Skipton Fund” (”Cronfa Skipton”) means the ex-gratia payment scheme administered by the Skipton Fund Limited, incorporated on 25 March 2004, for the benefit of certain persons suffering from hepatitis C and other persons eligible for payment in accordance with the scheme’s provisions;

“sports award” (“dyfarniad chwaraeon”) means an award made by one of the Sports Councils named in section 23(2) of the National Lottery etc Act 1993⁵⁰ out of sums allocated to it for distribution under that section;

“the SSCBA” (“DCBNC”) means the Social Security Contributions and Benefits Act 1992⁵¹;

“state pension credit” (“credyd pensiwn y wladwriaeth”) means state pension credit under the State Pension Credit Act 2002⁵²;

“statutory neonatal care pay” (“tâl gofal newydd-anedig statudol”) means statutory neonatal care pay under section 171ZZ16 of the SSCBA;

“student” (“myfyriwr”) has the meaning given by paragraph 70 of this scheme;

“subsistence allowance” (“lwfans cynhaliaeth”) means an allowance which an employment zone contractor has agreed to pay to a person who is participating in an employment zone programme;

“tax year” (“blwyddyn dreth”) means a period beginning with 6 April in one year and ending with 5 April in the next;

“training allowance” (“lwfans hyfforddi”) means an allowance (whether by way of periodical grants or otherwise) payable—out of public funds by a Government department or by or on behalf of the Secretary of State, Skills Development Scotland, Scottish Enterprise or Highlands and Islands Enterprise... or the Welsh Ministers;to a person for that person’s maintenance or in respect of a member of that person’s family; andfor the period, or part of the period, during which that person is following a course of training or instruction provided by, or in pursuance of arrangements made with, that department or approved by that department in relation to that person or so provided or approved by or on behalf of the Secretary of State, Skills Development Scotland, Scottish Enterprise or Highlands and Islands Enterprise or the Welsh Ministers,but it does not include an allowance paid by any Government department to or in respect of a person by reason of the fact that that person is following a course of full-time education, other than under arrangements made under section 2 of the Employment and Training Act 1973⁵³ or is training as a teacher;

“the Trusts” (“yr Ymddiriedolaethau”) means the Macfarlane Trust, the Macfarlane (Special Payments) Trust and the Macfarlane (Special Payments) (No 2) Trust;

“universal credit” (“credyd cynhwysol”) has the meaning given by section 1 of the Welfare Reform Act 2012⁵⁴;

“vaccine damage payment” (“taliad niwed drwy frechiad”) means a payment made under the Vaccine Damage Payments Act 1979;

“the Victims of Overseas Terrorism Compensation Scheme” (“y Cynllun Digolledu Dioddefwyr Terfysgaeth Dramor”) means the scheme of that name established by the Ministry of Justice in 2012 under section 47 of the Crime and Security Act 2010;

“voluntary organisation” (“sefydliad gwirfoddol”) means a body, other than a public or local authority, the activities of which are carried on otherwise than for profit;

“war disablement pension” (“pensiwn anabledd rhyfel”) means any retired pay or pension or allowance payable in respect of disablement under an instrument specified in section 639(2) of the Income Tax (Earnings and Pensions) Act 2003⁵⁵;

“war pension” (“pensiwn rhyfel”) means a war disablement pension, a war widow’s pension or a war widower’s pension;

“war widow’s pension” (“pensiwn rhyfel gwraig weddw”) means any pension or allowance payable to a woman as a widow under an instrument specified in section 639(2) of the Income Tax (Earnings and Pensions) Act 2003 in respect of the death or disablement of any person;

“war widower’s pension” (“pensiwn rhyfel gŵr gweddw”) means any pension or allowance payable to a man as a widower or to a surviving civil partner under an instrument specified in section 639(2) of the Income Tax (Earnings and Pensions) Act 2003 in respect of the death or disablement of any person;

“water charges” (“taliadau dŵr”) means—as respects England and Wales, any water and sewerage charges under Chapter 1 of Part 5 of the Water Industry Act 1991⁵⁶;as respects Scotland, any water and sewerage charges established by Scottish Water under a charges scheme made under section 29A of the Water Industry (Scotland) Act 2002⁵⁷,in so far as such charges are in respect of the dwelling which a person occupies as that person’s home;

“the We Love Manchester Emergency Fund” (“Cronfa Argyfwng We Love Manchester”) means the registered charity of that name (number 1173260) established on 30 May 2017;

“the Windrush Compensation Scheme” (“Cynllun Digolledu Windrush”) means—the scheme of that name operated by the Secretary of State for the purpose of compensating individuals who have suffered loss in connection with being unable to demonstrate their lawful status in the United Kingdom; andthe policy entitled “Windrush Scheme: Support in urgent and exceptional circumstances” which was operated by the Secretary of State for the purpose of compensating individuals who, for urgent and exceptional reasons, required support in advance of the scheme referred to in paragraph (a) of this definition becoming operational;

“working tax credit” (“credyd treth gwaith”) means a working tax credit under section 10 of the Tax Credits Act 2002⁵⁸;

“young person” (“person ifanc”) means a person who falls within the definition of qualifying young person in section 142 of the SSCBA⁵⁹.

(2) In this scheme, where an amount is to be rounded to the nearest penny, a fraction of a penny must be disregarded if it is less than half a penny and must otherwise be treated as a whole penny.

(3) For the purpose of this scheme, a person is on an income-based jobseeker’s allowance on any day in respect of which an income-based jobseeker’s allowance is payable to that person and on any day—

(a) in respect of which that person satisfies the conditions for entitlement to an income-based jobseeker’s allowance but where the allowance is not paid because of a reduction in accordance with section 19 or 19A or regulations made under section 17A or 19B of the Jobseekers Act 1995⁶⁰ (circumstances in which a jobseeker’s allowance is not payable);

(b) which is a waiting day for the purposes of paragraph 4 of Schedule 1 to that Act and which falls immediately before a day in respect of which an income-based jobseeker’s allowance is payable to that person or would be payable to that person but for section 19 or 19A or regulations made under section 17A or 19B of that Act; or

(c) in respect of which an income-based jobseeker’s allowance would be payable but for a restriction imposed pursuant to section 6B, 7, 8 or 9 of the Social Security Fraud Act 2001⁶¹ (loss of benefit provisions).

(4) For the purposes of this scheme, a person is on an income-related employment and support allowance on any day in respect of which an income-related employment and support allowance is payable to that person and on any day—

(a) in respect of which that person satisfies the conditions for entitlement to an income-related employment and support allowance but where the allowance is not paid in accordance with section 18 of the Welfare Reform Act 2007⁶² (disqualification); or

(b) which is a waiting day for the purposes of paragraph 2 of Schedule 2 to that Act (employment and support allowance: supplementary provisions) and which falls immediately before a day in respect of which an income-related employment and support allowance is payable to that person or would be payable to that person but for section 18 of that Act.

(5) For the purposes of this scheme, two persons must be taken to be estranged only if their estrangement constitutes a breakdown of the relationship between them.

(6) In this scheme, references to any person in receipt of state pension credit include a person who would be in receipt of state pension credit but for regulation 13 of the State Pension Credit Regulations 2002⁶³ (small amounts of state pension credit).

Application of scheme: pensioners and persons who are not pensioners

3

(1) This scheme applies to—

(a) pensioners who fall within class A or B⁶⁴; and

(b) persons who are not pensioners who fall within class C or D⁶⁵.

(2) In this scheme—

(a) a person is a “pensioner” (“pensiynwr”) if—

(i) that person has attained the qualifying age for state pension credit; and

(ii) that person is not, and, if that person has a partner, that person’s partner is not—

(aa) a person on income support, on an income-based jobseeker’s allowance or on an income-related employment and support allowance, or

(bb) a person with an award of universal credit; and

(b) a person is a “person who is not a pensioner” (“person nad yw’n bensiynwr”) if—

(i) that person has not attained the qualifying age for state pension credit; or

(ii) that person has attained the qualifying age for state pension credit and that person, or if that person has a partner, that person’s partner, is—

(aa) a person on income support, on an income-based jobseeker’s allowance or on an income-related employment and support allowance, or

(bb) a person with an award of universal credit.

(3) For the purposes of paragraphs (a)(ii)(bb) and (b)(ii)(bb) in sub-paragraph (2) an award of universal credit is to be disregarded—

(a) during the relevant period, or

(b) where regulation 60A of the Universal Credit (Transitional Provisions) Regulations 2014 applies in respect of the award.

(4) In this paragraph—

“assessment period” (“cyfnod asesu”) has the same meaning as in the Universal Credit Regulations 2013;

“relevant period” (“cyfnod perthnasol”) means the period beginning with the day on which a person (“P”) and each partner of P has attained the qualifying age for state pension credit and ending with the day on which the last assessment period for universal credit ends.

Meaning of “couple”

4

In this scheme “couple” (“cwpl”) means—

(a) two people who are either married to, or civil partners of, each other and who are members of the same household;

(b) two people who are living together as if they are a married couple or civil partners.

Polygamous marriages

5

(1) This paragraph applies to any case where—

(a) a person is a husband or wife by virtue of a marriage entered into under a law which permits polygamy; and

(b) either party to the marriage has for the time being any spouse additional to the other party.

(2) For the purposes of paragraph 4 (meaning of “couple”) neither party to the marriage is to be taken to be a member of a couple.

Meaning of “family”

6

(1) In this scheme “family” (“teulu”) means—

(a) a couple;

(b) a couple and a member of the same household for whom one of them is or both are responsible and who is a child or a young person; or

(c) a person who is not a member of a couple and a member of the same household for whom that person is responsible and who is a child or a young person.

(2) The references to a child or young person in sub-paragraph (1)(b) and (c) include a child or young person in respect of whom section 145A of the SSCBA⁶⁶ applies for the purposes of entitlement to child benefit, but only for the period prescribed under section 145A(1).

(3) The references to a young person in sub-paragraph (1)(b) and (c) do not include a young person who is—

(a) on income support, an income-based jobseeker’s allowance or an income-related employment and support allowance or has an award of universal credit; or

(b) a person to whom section 6 of the Children (Leaving Care) Act 2000⁶⁷ (exclusion from benefits) applies.

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

7

(1) A person is to be treated as responsible for a child or young person who is normally living with that person, including a child or young person to whom paragraph 6(2) applies.

(2) Where a child or young person spends equal amounts of time in different households, or where there is a question as to which household the child or young person is living in, the child or young person must be treated for the purposes of sub-paragraph (1) as normally living with—

(a) the person who is receiving child benefit in respect of that child or young person, or

(b) if there is no such person—

(i) where only one claim for child benefit has been made in respect of that child or young person, the person who made that claim; or

(ii) in any other case the person who has the primary responsibility for that child or young person.

(3) For the purposes of this scheme a child or young person is the responsibility of only one person in any reduction week and any person other than the one treated as responsible for the child or young person under this paragraph is to be treated as not so responsible.

Households

8

(1) Subject to sub-paragraphs (2) and (3), an applicant and any partner and, where the applicant or the applicant’s partner is treated (by virtue of paragraph 7) as responsible for a child or young person, that child or young person and any child of that child or young person, are to be treated as members of the same household notwithstanding that any of them is temporarily absent from that household.

(2) A child or young person is not be treated as a member of the applicant’s household where that child or young person is—

(a) placed with the applicant or the applicant’s partner by a local authority under section 22C or 23(2)(a) of the Children Act 1989⁶⁸ or by a voluntary organisation under section 59(1)(a) of that Act, or in Scotland boarded out or placed with the applicant or the applicant’s partner under a relevant enactment; or

(aa) placed with the applicant or the applicant’s partner under section 81 of the Social Services and Well-being (Wales) Act 2014; or

(b) placed, or in Scotland boarded out, with the applicant or the applicant’s partner prior to adoption; or

(c) placed for adoption with the applicant or the applicant’s partner in accordance with the Adoption and Children Act 2002⁶⁹, or the Adoption Agencies (Scotland) Regulations 2009⁷⁰, or the Adoption (Northern Ireland) Order 1987⁷¹.

(3) Subject to sub-paragraph (4), sub-paragraph (1) does not apply to a child or young person who is not living with the applicant and who—

(a) is being looked after by, or in Scotland is in the care of, a local authority under a relevant enactment; or

(b) has been placed, or in Scotland boarded out, with a person other than the applicant prior to adoption; or

(c) has been placed for adoption in accordance with the Adoption and Children Act 2002 or the Adoption Agencies (Scotland) Regulations 2009, or the Adoption (Northern Ireland) Order 1987.

(4) An authority must treat a child or young person to whom sub-paragraph (3)(a) applies as being a member of the applicant’s household in any reduction week where—

(a) that child or young person lives with the applicant for part or all of that reduction week; and

(b) the authority considers that it is reasonable to do so taking into account the nature and frequency of that child’s or young person’s visits.

(5) In this paragraph “relevant enactment” (“deddfiad perthnasol”) means—

(a) the Army Act 1955⁷²;

(b) the Air Force Act 1955⁷³;

(d) the Matrimonial Proceedings (Children) Act 1958⁷⁵;

(e) the Social Work (Scotland) Act 1968⁷⁶;

(f) the Family Law Reform Act 1969⁷⁷;

(g) the Children and Young Persons Act 1969⁷⁸;

(h) the Matrimonial Causes Act 1973⁷⁹;

(i) the Children Act 1975[^f00086]:

(j) the Domestic Proceedings and Magistrates’ Courts Act 1978⁸¹;

(k) the Adoption and Children (Scotland) Act 2007⁸²;

(l) the Family Law Act 1986⁸³;

(m) the Children Act 1989⁸⁴;

(n) the Children (Scotland) Act 1995⁸⁵;

(o) the Armed Forces Act 2006⁸⁶; ...

(oa) the Children’s Hearings (Scotland) Act 2011; and

(p) the Legal Aid, Sentencing and Punishment of Offenders Act 2012⁸⁷.

Non-dependants

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(1) In this scheme, “non-dependant” (“annibynnydd”) means any person, except someone to whom sub-paragraph (2) applies, who normally resides with an applicant or with whom an applicant normally resides.

(2) This sub-paragraph applies to—

(a) any member of the applicant’s family;

(b) if the applicant is polygamously married, any partner of the applicant and any child or young person who is a member of the applicant’s household and for whom the applicant or one of the applicant’s partners is responsible;

(c) a child or young person who is living with the applicant but who is not a member of the applicant’s household by virtue of paragraph 8 (households);

(d) subject to sub-paragraph (3), any person who, with the applicant, is jointly and severally liable to pay council tax in respect of a dwelling for any day under sections 6 or 7 of the 1992 Act⁸⁸ (persons liable to pay council tax);

(e) subject to sub-paragraph (3), any person who is liable to make payments on a commercial basis to the applicant or the applicant’s partner in respect of the occupation of the dwelling;

(f) a person who lives with the applicant in order to care for the applicant or a partner of the applicant, and who is engaged by a charitable or voluntary organisation which makes a charge to the applicant or the applicant’s partner for the services provided by that person.

(g) any person who has been granted leave to enter or remain in the United Kingdom under or outside the immigration rules made under section 3(2) of the Immigration Act 1971 or has a right of abode in the United Kingdom, within the meaning of section 2 of that Act, where the person—

(i) was residing in Ukraine immediately before 1 January 2022;

(ii) left Ukraine in connection with the Russian invasion which took place on 24 February 2022; and

(iii) is residing with the applicant in connection with the Homes for Ukraine Sponsorship Scheme.

(3) Excepting persons to whom sub-paragraph 2(a) to (c), (f) and (g) refer, a person to whom any of the following paragraphs applies is a non-dependant—

(a) a person (P) who resides with the person (O) to whom P is liable to make payments in respect of the dwelling and either—

(i) O is a close relative of P’s or P’s partner; or

(ii) the tenancy or other agreement between them is other than on a commercial basis;

(b) a person whose liability to make payments in respect of the dwelling appears to the authority to have been created to take advantage of a council tax reduction scheme except someone who was, for any period within the eight weeks prior to the creation of the agreement giving rise to the liability to make such payments, otherwise liable to make payments of rent in respect of the same dwelling;

(c) a person who becomes jointly and severally liable with the applicant for council tax in respect of a dwelling and who was, at any time during the period of eight weeks prior to that person becoming so liable, a nondependent of one or more of the other residents in that dwelling who are so liable for the tax, unless the change giving rise to the new liability was not made to take advantage of a council tax reduction scheme.

Remunerative work

10

(1) Subject to the following provisions of this paragraph, a person must be treated for the purposes of this scheme as engaged in remunerative work if that person is engaged, or, where that person’s hours of work fluctuate, that person is engaged on average, for not less than 16 hours a week, in work for which payment is made or which is done in expectation of payment.

(2) Subject to sub-paragraph (3), in determining the number of hours for which a person is engaged in work where that person’s hours of work fluctuate, regard must be had to the average of hours worked over—

(a) if there is a recognisable cycle of work, the period of one complete cycle (including, where the cycle involves periods in which the person does no work, those periods but disregarding any other absences);

(b) in any other case, the period of 5 weeks immediately prior to the date of application, or such other length of time as may, in the particular case, enable the person’s weekly average hours of work to be determined more accurately.

(3) Where, for the purposes of sub-paragraph (2)(a), a person’s recognisable cycle of work at a school, other educational establishment or other place of employment is one year and includes periods of school holidays or similar vacations during which that person does not work, those periods and any other periods not forming part of such holidays or vacations during which that person is not required to work must be disregarded in establishing the average hours for which that person is engaged in work.

(4) Where no recognisable cycle has been established in respect of a person’s work, regard must be had to the number of hours or, where those hours will fluctuate, the average of the hours, which that person is expected to work in a week.

(5) A person must be treated as engaged in remunerative work during any period for which that person is absent from work referred to in sub-paragraph (1) if the absence is either without good cause or by reason of a recognised, customary or other holiday.

(6) A person on income support, an income-based jobseeker’s allowance or an income-related employment and support allowance for more than 3 days in any reduction week is to be treated as not being in remunerative work in that week.

(7) A person must not be treated as engaged in remunerative work on any day on which that person is on maternity leave, paternity leave , shared parental leave , parental bereavement leave , neonatal care leave or adoption leave, or is absent from work because that person is ill.

(8) A person must not be treated as engaged in remunerative work on any day on which that person is engaged in an activity in respect of which—

(a) a sports award has been made, or is to be made, to that person; and

(b) no other payment is made or is expected to be made to that person.

PART 3 — Procedural matters

Procedure for reduction applications and appeals against reduction decisions

11

Schedule 1 contains provisions about the procedure—

(a) by which a person may apply for a reduction under this scheme;

(b) by which a person may make an appeal against certain decisions of the authority;

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

Classes of person entitled to a reduction under this scheme

12

(1) The classes of person described in paragraphs 13 to 16 are entitled to a reduction under this scheme.

(2) In those paragraphs, references to the applicant’s income or capital include, in a case where that income or capital cannot accurately be determined, references to the applicant’s estimated income or capital.

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

13

On any day class A consists of any person who is a pensioner—

(a) who is for that day liable to pay council tax in respect of a dwelling of which the person is a resident;

(b) who, subject to paragraph 17 (periods of absence from a dwelling), is not absent from the dwelling throughout the day;

(d) who does not fall within a class of person not entitled to a reduction under this scheme;

(e) whose income (if any) for the relevant week does not exceed the person’s applicable amount; and

(f) who has made an application.

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

14

On any day class B consists of any person who is a pensioner—

(a) who is for that day liable to pay council tax in respect of a dwelling of which the person is a resident;

(b) who, subject to paragraph 17 (periods of absence from a dwelling), is not absent from the dwelling throughout the day;

(d) who does not fall within a class of person not entitled to a reduction under this scheme;

(e) whose income for the relevant week is greater than the person’s applicable amount;

(f) in respect of whom amount A exceeds amount B where—

(i) amount A is the maximum council tax reduction in respect of the day in the person’s case; and

(ii) amount B is 2 6/7 per cent of the difference between the person’s income for the relevant week and the person’s applicable amount; and

(g) who has made an application.

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

15

On any day class C consists of any person who is not a pensioner—

(a) who is for that day liable to pay council tax in respect of a dwelling of which the person is a resident;

(b) who, subject to paragraph 17 (periods of absence from a dwelling), is not absent from the dwelling throughout the day;

(d) who does not fall within a class of person not entitled to a reduction under this scheme;

(e) whose income (if any) for the relevant week is less than the person’s applicable amount; and

(f) who has made an application.

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

16

On any day class D consists of any person who is not a pensioner—

(a) who is for that day liable to pay council tax in respect of a dwelling of which the person is a resident;

(b) who, subject to paragraph 17 (periods of absence from a dwelling), is not absent from the dwelling throughout the day;

(d) who does not fall within a class of person not entitled to a reduction under this scheme;

(e) whose income for the relevant week is greater than the person’s applicable amount;

(f) in respect of whom amount A exceeds amount B where—

(i) amount A is the maximum council tax reduction in respect of the day in the person’s case; and

(ii) amount B is 2 6/7 per cent of the difference between the person’s income for the relevant week and the person’s applicable amount; and

(g) who has made an application.

Periods of absence from a dwelling

17

(1) A person is not absent from a dwelling in relation to any day which falls within a period of temporary absence from that dwelling.

(2) In sub-paragraph (1), a “period of temporary absence” (“cyfnod o absenoldeb”) means—

(a) a period of absence not exceeding 13 weeks, beginning with the first whole day on which a person resides in residential accommodation where and for so long as—

(i) the person resides in that accommodation;

(ii) the part of the dwelling in which the person usually resides is not let or sub-let; and

(iii) that period of absence does not form part of a longer period of absence from the dwelling of more than 52 weeks,

(b) where the person has entered the accommodation for the purpose of ascertaining whether it suits the person’s needs and with the intention of returning to the dwelling if it proves not to suit the person’s needs;

(c) a period of absence not exceeding 13 weeks, beginning with the first whole day of absence from the dwelling, where and for so long as—

(i) the person intends to return to the dwelling;

(ii) the part of the dwelling in which the person usually resided is not let or sub-let; and

(iii) that period is unlikely to exceed 13 weeks; and

(d) a period of absence not exceeding 52 weeks, beginning with the first whole day of that absence, where and for so long as—

(i) the person intends to return to the dwelling;

(ii) the part of the dwelling in which the person usually resided is not let or sub-let;

(iii) the person is a person to whom sub-paragraph (3) applies; and

(iv) the period of absence is unlikely to exceed 52 weeks or, in exceptional circumstances, is unlikely substantially to exceed that period.

(3) This sub-paragraph applies to a person who—

(a) is detained in custody on remand pending trial or required, as a condition of bail, to reside—

(i) in a dwelling, other than the dwelling referred to in sub-paragraph (1); or

(ii) in premises approved under section 13 of the Offender Management Act 2007⁸⁹;

or is detained in custody pending sentence upon conviction;

(b) is resident in a hospital or similar institution as a patient;

(c) is undergoing, or whose partner or dependent child is undergoing, in the United Kingdom or elsewhere, medical treatment, or medically approved convalescence, in accommodation other than residential accommodation;

(d) is following, in the United Kingdom or elsewhere, a training course;

(e) is undertaking medically approved care of a person residing in the United Kingdom or elsewhere;

(f) is undertaking the care of a child whose parent or guardian is temporarily absent from the dwelling normally occupied by that parent or guardian for the purpose of receiving medically approved care or medical treatment;

(g) is, in the United Kingdom or elsewhere, receiving medically approved care provided in accommodation other than residential accommodation;

(h) is a student;

(i) is receiving care provided in residential accommodation and is not a person to whom sub-paragraph (2)(a) applies; or

(j) has left the dwelling the person resides in through fear of violence, in that dwelling, or by a person who was formerly a member of the family of that person.

(4) This sub-paragraph applies to a person who is—

(a) detained in custody pending sentence upon conviction or under a sentence imposed by a court (other than a person who is detained in hospital under the provisions of the Mental Health Act 1983⁹⁰, or, in Scotland, under the provisions of the Mental Health (Care and Treatment) (Scotland) Act 2003⁹¹ or the Criminal Procedure (Scotland) Act 1995⁹², or in Northern Ireland, under Article 4 or 12 of the Mental Health (Northern Ireland) Order 1986⁹³; and

(b) on temporary release from detention in accordance with Rules made under the provisions of the Prison Act 1952⁹⁴ or the Prisons (Scotland) Act 1989⁹⁵.

(5) Where sub-paragraph (4) applies to a person, then, for any day when that person is on temporary release—

(a) if such temporary release was immediately preceded by a period of temporary absence under sub-paragraph (2)(b) or (c), that person must be treated, for the purposes of sub-paragraph (1), as if that person continues to be absent from the dwelling, despite any return to the dwelling;

(b) for the purposes of sub-paragraph (3)(a), that person must be treated as if that person remains in detention;

(c) if that person does not fall within paragraph (a), that person is not to be considered to be a person who is liable to pay council tax in respect of a dwelling of which that person is a resident.

(6) In this paragraph—

“medically approved” (“a gymeradwywyd yn feddygol”) means certified by a medical practitioner;

“patient” (“claf”) means a person who is undergoing medical or other treatment as an in-patient in any hospital or similar institution;

“residential accommodation” (“llety preswyl”) means accommodation which is provided in—a care home;an independent hospital;an Abbeyfield Home; oran establishment managed or provided by a body incorporated by Royal Charter or constituted by Act of Parliament other than a local social services authority;

“training course” (“cwrs hyfforddi”) means a course of training or instruction provided wholly or partly by or on behalf of or in pursuance of arrangements made with, or approved by or on behalf of, Skills Development Scotland, Scottish Enterprise, Highlands and Islands Enterprise, a government department, the Welsh Ministers or the Secretary of State.

PART 5 — Classes of person excluded from this scheme

Classes of person excluded from this scheme

18

The classes of person described in paragraphs 19 to 22 are not entitled to a reduction under this scheme.

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

19

(1) The class of person described in this paragraph consists of any person treated as not being in Great Britain.

(2) Except where a person falls within sub-paragraph (5) or (6), a person is to be treated as not being in Great Britain if the person is not habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland.

(3) A person must not be treated as habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland unless the person has a right to reside in one of those places.

(4) For the purposes of sub-paragraph (3), a right to reside does not include a right which exists by virtue of, or in accordance with—

(a) regulation 13 of the EEA Regulations or Article 6 of Council Directive No. 2004/38/EC⁹⁶;

(b) regulation 14 of the EEA Regulations, but only in a case where the right exists under that regulation because the person is—

(i) a jobseeker for the purpose of the definition of “qualified person” in regulation 6(1) of those Regulations, or

(ii) a family member (within the meaning of regulation 7 of those Regulations) of such a jobseeker;

(c) Article 45 of the Treaty on the Functioning of the European Union (in a case where the person is seeking work in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland);...

(d) regulation 16 of the EEA Regulations, but only in a case where the right exists under that regulation because the applicant satisfies the criteria in paragraph (5) of that regulation or Article 20 of the Treaty on the Functioning of the European Union (in a case where the right to reside arises because a British citizen would otherwise be deprived of the genuine enjoyment of their rights as a European Union citizen)⁹⁷ ; or

(e) a person having been granted limited leave to enter, or remain in, the United Kingdom under the Immigration Act 1971 by virtue of—

(i) Appendix EU to the immigration rules made under section 3(2) of that Act;

(ii) being a person with a Zambrano right to reside as defined in Annex 1 of Appendix EU to the immigration rules made under section 3(2) of that Act; or

(iii) article 3 (grant of leave to EEA and Swiss nationals) of the Immigration (European Economic Area Nationals) (EU Exit) Order 2019 made under section 3A of that Act.

(5) A person falls within this sub-paragraph if the person is—

(a) a qualified person for the purposes of regulation 6 of the EEA Regulations as a worker or a self-employed person;

(b) a family member of a person referred to in paragraph (a) within the meaning of regulation 7(1)(a), (b) or (c) of the EEA Regulations;

(c) a person who has a right to reside permanently in the United Kingdom by virtue of regulation 15(1)(c), (d) or (e) of the EEA Regulations;

(d) a person recorded by the Secretary of State as a refugee within the definition in Article 1 of the Convention relating to the Status of Refugees adopted at Geneva on 28th July 1951, as extended by Article 1(2) of the Protocol relating to the Status of Refugees adopted at New York on 31 January 1967;

(e) a person who has been granted, or who is deemed to have been granted, leave outside the rules made under section 3(2) of the Immigration Act 1971 where that leave is—

(i) discretionary leave to enter or remain in the United Kingdom,

(ii) leave to remain under the Migrant Victims of Domestic Abuse concession, ...

(iii) leave deemed to have been granted by virtue of regulation 3 of the Displaced Persons (Temporary Protection) Regulations 2005 , or

(iv) granted under the Afghan Citizens Resettlement Scheme;

(f) a person who has humanitarian protection granted under those rules;

(g) a person who is not a person subject to immigration control within the meaning of section 115(9) of the Immigration and Asylum Act 1999⁹⁸ and who is in the United Kingdom as a result of the person’s deportation, expulsion or other removal by compulsion of law from another country to the United Kingdom;

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(j) in receipt of income support, an income-related employment and support allowance or universal credit;

(k) a person who is treated as a worker for the purposes of the definition of “qualified person” in regulation 6(1) of the EEA Regulations pursuant to regulation 5 of the Accession of Croatia (Immigration and Worker Authorisation) Regulations 2013 (right of residence of a Croatian who is an “accession State national subject to worker authorisation”)...; ...

(l) in receipt of an income-based jobseeker’s allowance and has a right to reside other than a right to reside falling within sub-paragraph (4)(a) to (d) ;

(m) a person granted leave in accordance with the rules referred to in paragraph (e), where such leave is granted by virtue of—

(i) the Afghan Relocations and Assistance Policy, or

(ii) the previous scheme for locally-employed staff in Afghanistan (sometimes referred to as the ex-gratia scheme);...

(n) a person in Great Britain not coming within paragraph (e)(iv) or (m) who left Afghanistan in connection with the collapse of the Afghan government that took place on 15 August 2021 ; ...

(o) a person in Great Britain who was residing in Ukraine immediately before 1 January 2022, left Ukraine in connection with the Russian invasion which took place on 24 February 2022 and—

(i) has been granted leave to enter or remain in the United Kingdom in accordance with immigration rules made under section 3(2) of the Immigration Act 1971 or

(ii) has a right of abode in the United Kingdom within the meaning given in section 2 of that Act;

(p) a person in Great Britain who was residing in Sudan before 15 April 2023, left Sudan in connection with the violence which rapidly escalated on 15 April 2023 in Khartoum and across Sudan and—

(i) has been granted leave in accordance with immigration rules made under section 3(2) of the Immigration Act 1971,

(ii) has a right of abode in the United Kingdom within the meaning given in section 2 of that Act, or

(iii) does not require leave to enter or remain in the United Kingdom in accordance with section 3ZA of that Act; ...

(q) a person in Great Britain who was residing in Israel, the West Bank, the Gaza Strip, East Jerusalem, the Golan Heights or Lebanon immediately before 7 October 2023, left Israel, the West Bank, the Gaza Strip, East Jerusalem, the Golan Heights or Lebanon in connection with the Hamas terrorist attack in Israel on 7 October 2023 or the violence which rapidly escalated in the region following the attack and—

(i) has been granted leave in accordance with immigration rules made under section 3(2) of the Immigration Act 1971,

(ii) has a right of abode in the United Kingdom within the meaning of section 2 of that Act, or

(iii) does not require leave to enter or remain in the United Kingdom in accordance with section 3ZA of that Act;

(r) a person who—

(i) was residing in Israel, the West Bank, the Gaza Strip or East Jerusalem on or before 23 June 2025,

(ii) left Israel, the West Bank, the Gaza Strip or East Jerusalem in connection with the conflict between Israel and Iran which escalated in June 2025,

(iii) arrived in Great Britain on or before 23 December 2025, and

(iv) satisfies one of the following criteria—

(aa) has been granted leave to enter or remain in the United Kingdom under or outside the rules made under section 3(2) of the Immigration Act 1971,

(bb) has a right of abode in the United Kingdom within the meaning of section 2 of that Act, or

(cc) in accordance with section 3ZA of that Act, does not require leave to enter or remain in the United Kingdom;

(s) a person who (but see sub-paragraph (5A))—

(i) was residing in a country or territory outside Great Britain immediately before His Majesty’s Government—

(aa) provided public information to advise British nationals to leave that country or territory, or

(bb) arranged the evacuation of British nationals from that country or territory,

(ii) has left that country or territory and is present in Great Britain, and

(iii) has—

(aa) a right of abode in the United Kingdom within the meaning given in section 2 of the Immigration Act 1971,

(bb) no requirement of leave to enter or remain in the United Kingdom in accordance with section 3ZA of that Act,

(cc) leave to enter or remain in the United Kingdom in accordance with immigration rules made under section 3(2) of that Act, or

(dd) leave on a discretionary basis outside of rules made under section 3(2) of that Act;

(t) a person who, as part of a safe and legal humanitarian immigration route, has leave to enter the United Kingdom in accordance with immigration rules made under section 3(2) of the Immigration Act 1971 or leave on a discretionary basis outside those rules.

(5A) Paragraph (s) of sub-paragraph (5) does not apply after the expiry of 6 months beginning with the day on which the public information is issued, or the evacuation is started.

(6) A person falls within this sub-paragraph if the person is a Crown servant or member of Her Majesty’s forces posted overseas.

(7) A person mentioned in sub-paragraph (6) is posted overseas if the person is performing oversees the duties of a Crown servant or member of Her Majesty’s forces and was, immediately before the posting or the first of consecutive postings, habitually resident in the United Kingdom.

(8) In this paragraph—

“claim for asylum” (“hawliad am loches”) has the same meaning as in section 94(1) of the Immigration and Asylum Act 1999⁹⁹;

“EEA Regulations” (“Rheoliadau AEE”) means the Immigration (European Economic Area) Regulations 2016.

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

20

(1) Persons subject to immigration control are not entitled to a reduction under this scheme.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) “Person subject to immigration control” (“person sy’n ddarostyngedig i reolaeth fewnfudo”) has the meaning given in section 115(9) of the Immigration and Asylum Act 1999.

Class of person excluded from this scheme: capital limit

21

(1) The class of person described in this paragraph consists of any person whose capital exceeds £16,000¹⁰⁰.

(2) Capital for the purposes of sub-paragraph (1) is to be calculated in accordance with Part 9 of this scheme.

Class of person excluded from this scheme: students

22

The class of person described in this paragraph consists of any student to whom paragraph 72(1) of this scheme applies.

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

Applicable amounts: pensioners (including pensioners in polygamous marriages)

23

(1) The applicable amount for a pensioner¹⁰¹ for a week is the aggregate of such of the following amounts as apply in that person’s case—

(a) an amount in respect of the person, or if that person is a member of a couple, an amount in respect of both of them, determined in accordance with paragraph 1 of Schedule 2 (personal allowance);

(b) an amount in respect of any child or young person who is a member of the person’s family, determined in accordance with paragraph 2 of that Schedule (child or young person amounts);

(c) if the person is a member of a family of which at least one member is a child or young person, an amount determined in accordance with paragraph 3 of that Schedule (family premium);

(d) the amount of any premiums which may be applicable to the person, determined in accordance with Parts 3 and 4 of that Schedule (premiums).

(2) In Schedule 2—

“additional spouse” (“priod ychwanegol”) means a spouse of either party to the marriage who is additional to the other party to the marriage;

“patient” (“claf”) 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 2005¹⁰².

Applicable amounts: persons who are not pensioners

24

(1) Subject to paragraphs 25 and 26, the applicable amount for a week for a person who is not a pensioner is the aggregate of such of the following amounts as may apply in the person’s case—

(a) an amount in respect of the person or, if that person is a member of a couple, an amount in respect of both of them, determined in accordance with paragraph 1 of Schedule 3 (personal allowances);

(b) an amount in respect of any child or young person who is a member of the person’s family, determined in accordance with paragraph 3 of that Schedule (child or young person amounts);

(c) if the person is a member of a family of which at least one member is a child or young person, an amount determined in accordance with Part 2 of that Schedule (family premium);

(d) the amount of any premiums which may be applicable to the person, determined in accordance with Parts 3 and 4 of that Schedule (premiums);

(e) the amount of either the—

(i) work-related activity component; or

(ii) support component,

(f) which may be applicable to the person in accordance with Parts 5 and 6 of that Schedule (the components);

(g) the amount of any transitional addition which may be applicable to the person in accordance with Parts 7 and 8 of that Schedule (transitional addition).

(2) In Schedule 3—

“additional spouse” (“priod ychwanegol”) means a spouse of either party to the marriage who is additional to the other party to the marriage;

“converted employment and support allowance” (“lwfans cyflogaeth a chymorth a droswyd”) means an employment and support allowance which is not income-related and to which a person is entitled as a result of a conversion decision within the meaning of the Employment and Support Allowance (Existing Awards) Regulations 2008¹⁰³;

“patient” (“claf”) 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 2005¹⁰⁴.

Polygamous marriages: persons who are not pensioners

25

(1) This paragraph applies where an applicant who is not a pensioner is a member of a polygamous marriage and does not have (alone or jointly with a party to a marriage), an award of universal credit.

(2) The applicable amount for a week of an applicant where this paragraph applies is the aggregate of such of the following amounts as may apply in that applicant’s case—

(a) the amount applicable to the applicant and one of the applicant’s partners determined in accordance with paragraph 1(3) of Schedule 3 (couple) as if the applicant and that partner were a couple;

(b) an amount equal to the difference between the amounts specified in sub-paragraphs (3) and (1)(b) of paragraph 1 of that Schedule in respect of each of the applicant’s other partners;

(c) an amount determined in accordance with paragraph 3 of that Schedule (child or young person amounts) in respect of any child or young person for whom the applicant or a partner of the applicant is responsible and who is a member of the same household;

(d) if the applicant or another partner of the polygamous marriage is responsible for a child or young person who is a member of the same household, the amount specified in Part 2 of that Schedule (family premium);

(e) the amount of any premiums which may be applicable to the applicant determined in accordance with Parts 3 and 4 of that Schedule (premiums);

(f) the amount of either the—

(i) work-related activity component; or

(ii) support component,

which may be applicable to the applicant in accordance with Parts 5 and 6 of that Schedule (the components);

(g) the amount of any transitional addition which may be applicable to the applicant in accordance with Parts 7 and 8 of that Schedule (transitional addition).

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

26

(1) Subject to sub-paragraph (2), in determining the applicable amount for a week of an applicant who is not a pensioner—

(a) who has, or

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

an award of universal credit, the authority will use the calculation or estimate of the maximum amount of the applicant, or the applicant and the applicant’s partner jointly (as the case may be), subject to the adjustment described in sub-paragraph (3).

(2) In determining the applicable amount for a week of an applicant who is a member of a polygamous marriage, the fact that two people are husband and wife is to be disregarded if—

(a) one of them is a party to an earlier marriage that still subsists; and

(b) the other party to that earlier marriage is living in the same household.

(3) The adjustment referred to in sub-paragraph (1) is to multiply the maximum amount by 12 and divide the product by 52.

(4) In this paragraph “maximum amount” (“swm uchaf”) means the maximum amount calculated by the Secretary of State in accordance with section 8(2) of the Welfare Reform Act 2012¹⁰⁵.

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

(1) Subject to sub-paragraphs (2) to (4), the amount of a person’s maximum council tax reduction in respect of a day is 100 per cent of the amount A/B where—

(a) A is the amount set by the authority as the council tax for the relevant financial year in respect of the dwelling in which the person is a resident and for which the person is liable, subject to any discount which may be appropriate to that dwelling under the 1992 Act; and

(b) B is the number of days in that financial year,

less any deductions in respect of non-dependants which fall to be made under paragraph 28 (non-dependant deductions: pensioners and persons who are not pensioners).

(2) In calculating a person’s maximum council tax reduction under this scheme any reduction in the amount that person is liable to pay in respect of council tax, which is made in consequence of any enactment in, or made under, the 1992 Act (other than a reduction under this scheme), is to be taken into account.

(3) Subject to sub-paragraph (4), where an applicant is jointly and severally liable for council tax in respect of a dwelling in which the applicant is resident with one or more other persons, in determining the maximum council tax reduction in the applicant’s case in accordance with sub-paragraph (1), the amount A is to be divided by the number of persons who are jointly and severally liable for that tax.

(4) Where an applicant is jointly and severally liable for council tax in respect of a dwelling with only a partner, sub-paragraph (3) does not apply in that applicant’s case.

(5) The reference in sub-paragraph (3) to a person with whom an applicant is jointly and severally liable for council tax, where the applicant is a person who is not a pensioner, does not include a student to whom paragraph 72(1) (students who are excluded from entitlement to a reduction under this scheme) applies.

(6) In this paragraph “relevant financial year” (“blwyddyn ariannol berthnasol”) means, in relation to any particular day, the financial year within which the day in question falls.

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

28

(1) Subject to the following provisions of this paragraph, the non-dependant deductions in respect of a day referred to in paragraph 27 are—

(a) in respect of a non-dependant aged 18 or over in remunerative work, £20.05 x ¹/₇;

(b) in respect of a non-dependant aged 18 or over to whom paragraph (a) does not apply, £6.70 x ¹/₇.

(2) In the case of a non-dependant aged 18 or over to whom sub-paragraph (1)(a) applies, where it is shown to the authority that that non-dependant’s normal gross weekly income is—

(a) less than£279.00, the deduction to be made under this paragraph is that specified in sub-paragraph (1)(b);

(b) not less than £279.00 but less than £485.00, the deduction to be made under this paragraph is £13.35 x ¹/₇;

(3) Only one deduction is to be made under this paragraph in respect of a couple or, as the case may be, members of a polygamous marriage (other than where there is an award of universal credit) and, where, but for this paragraph, the amount that would fall to be deducted in respect of one member of a couple or polygamous marriage is higher than the amount (if any) that would fall to be deducted in respect of the other, or any other, member, the higher amount is to be deducted.

(4) In applying the provisions of sub-paragraph (2) in the case of a couple or, as the case may be, a polygamous marriage, regard must be had, for the purpose of that sub-paragraph, to the couple’s or, as the case may be, all members of the polygamous marriage’s joint weekly gross income.

(5) Where in respect of a day—

(a) a person is a resident in a dwelling but that person is not liable for council tax in respect of that dwelling and that day;

(b) other residents in that dwelling (the liable persons) have joint and several liability for council tax in respect of that dwelling and that day otherwise than by virtue of section 9 of the 1992 Act (liability of spouses and civil partners); and

the deduction in respect of that non-dependant must be apportioned equally between those liable persons.

(6) No deduction is to be made in respect of any non-dependants occupying an applicant’s dwelling if the applicant or the applicant’s partner is—

(a) blind or severely sight-impaired or treated as such by virtue of paragraph 10 of Schedule 3 (additional condition for the disability premium); or

(b) receiving in respect of the applicant—

(i) attendance allowance, or would be receiving that allowance but for—

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

(bb) an abatement as a result of hospitalisation; or

(ii) the care component of the disability living allowance, or would be receiving that component but for—

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

(bb) an abatement as a result of hospitalisation; or

(iii) the daily living component of personal independence payment, or would be receiving that allowance but for a suspension of benefit in accordance with regulations under section 86 of the Welfare Reform Act 2012¹⁰⁶ (hospital in-patients);or

(iv) an AFIP, or would be receiving that payment but for a suspension of it in accordance with any terms of the armed and reserve forces compensation scheme which allows for a suspension because a person is undergoing medical treatment in a hospital or similar institution.

(7) No deduction is to be made in respect of a non-dependant if—

(a) although that non-dependant resides with the applicant, it appears to the authority that that non-dependant’s normal home is elsewhere; or

(b) the non-dependant is in receipt of a training allowance paid in connection with youth training established under section 2 of the Employment and Training Act 1973¹⁰⁷ or section 2 of the Enterprise and New Towns (Scotland) Act 1990¹⁰⁸; or

(d) the non-dependant is not residing with the applicant because the non-dependant has been a patient for a period in excess of 52 weeks, and for these purposes—

(i) “patient” (“claf”) has the meaning given in paragraph 17(6) of this scheme, and

(ii) where a person has been a patient for two or more distinct periods separated by one or more intervals each not exceeding 28 days, that person is to be treated as having been a patient continuously for a period equal in duration to the total of those distinct periods.

(8) No deduction is to be made in respect of a non-dependant—

(a) who is on income support, state pension credit, an income-based jobseeker’s allowance or an income related employment and support allowance and where the non-dependant is not a member of the work- related activity group; ...

(b) to whom Part 3 (disregards) of the Council Tax (Discounts, Disregards and Exemptions) (Wales) Regulations 2026 applies but this paragraph does not apply to a non-dependant who is a student within the meaning of Part 3 of, and Schedule 2 to, those Regulations;

(c) who is entitled to an award of universal credit where the award is calculated on the basis that the person does not have any earned income.

(9) In the application of sub-paragraph (2) there is to be disregarded from the non-dependant’s weekly gross income—

(a) any attendance allowance, disability living allowance, personal independence payment or AFIP received by the non-dependant;

(b) any payment made under or by the Trusts, the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation , an approved blood scheme, the Scottish Infected Blood Support Scheme, the London Emergencies Trust, the We Love Manchester Emergency Fund , the Victims of Overseas Terrorism Compensation Scheme , the Windrush Compensation scheme or the Independent Living Fund (2006) which, had the non-dependant’s income fallen to be calculated under paragraph 51 (calculation of income other than earnings: persons who are not pensioners), would have been disregarded under paragraph 28 of Schedule 7 (income in kind); ...

(ba) any Post Office compensation payment , vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment;

(c) any payment which, had the non-dependant’s income fallen to be calculated under paragraph 51 (calculation of income other than earnings: persons who are not pensioners), would have been disregarded under paragraph 41 of Schedule 7 (payments made under certain trusts and certain other payments) ; ...

(d) any payment made under or by a trust, established for the purpose of giving relief and assistance to disabled persons whose disabilities were caused by the fact that during their mother’s pregnancy she had taken a preparation containing the drug known as Thalidomide, and which is approved by the Secretary of State;

(e) any payment out of the estate of a person to that person's son, daughter, step-son or step-daughter which derives from a payment to meet the recommendation of the Infected Blood Inquiry in its interim report published on 29 July 2022 made under or by the Scottish Infected Blood Support Scheme or an approved blood scheme;

(f) any payment out of the estate of a person, which derives from a payment made under or by the Scottish Infected Blood Support Scheme or an approved blood scheme to the estate of the person as a result of that person being infected from contaminated blood products.

(10) For the purposes of sub-paragraph (8), “earned income” (“incwm a enillir”) has the meaning given in regulation 52 of the Universal Credit Regulations 2013.

PART 8 — Amount of reduction under this scheme

Amount of reduction under this scheme: Classes A to D

29

(1) Where a person is entitled to a reduction under this scheme in respect of a day, the amount of the reduction to which that person is entitled is as follows.

(2) Where the person is within class A or C, that amount is the amount which is the maximum council tax reduction in respect of the day in the person’s case.

(3) Where the person is within class B or D, that amount is the amount found by deducting amount B from amount A, where “amount A” and “amount B” have the meanings given in paragraph 14(f) or 16(f), as the case may be.

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

(1) The income and capital of—

(a) an applicant; and

(b) any partner of that applicant,

is to be calculated in accordance with the provisions of this Part.

(2) The income and capital of any partner of the applicant is to be treated as income and capital of the applicant, and in this Part any reference to the applicant applies equally to any partner of that applicant.

(3) Where an applicant or the partner of an applicant is married polygamously to two or more members of the applicant’s household—

(a) the applicant must be treated as possessing capital and income belonging to each such member; and

(b) the income and capital of that member is to be calculated in accordance with the following provisions of this Part in like manner as for the applicant.

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

31

(1) Sub-paragraph (2) applies where it appears to the authority that a non-dependant and an applicant have entered into arrangements in order to take advantage of this scheme and the non-dependant has more income and capital than the applicant.

(2) Except where—

(a) the applicant is a pensioner and is on a guarantee credit, or

(b) the applicant is not a pensioner and is on income support, an income-based jobseeker’s allowance or an income-related employment and support allowance,

the authority must treat the applicant as possessing income and capital belonging to that non-dependant and, in such a case, any capital and income which the applicant does possess is to be disregarded.

(3) Where an applicant is treated as possessing capital and income belonging to a non-dependant under sub-paragraph (2) the capital and income of that non-dependant will be calculated in accordance with the following provisions of this Part in like manner as for the applicant and, except where the context otherwise requires, any reference to the “applicant” (“ceisydd”) is to be construed for the purposes of this Part as if it were a reference to that non-dependant.

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

Pensioners in receipt of guarantee credit

32

In the case of an applicant who is a pensioner and who is in receipt, or whose partner is in receipt, of a guarantee credit, the whole of the applicant’s capital and income must be disregarded.

Calculation of pensioner’s income in savings credit only cases

33

(1) In determining the income and capital of an applicant who is a pensioner and who has, or whose partner has, an award of state pension credit comprising only the savings credit, subject to the following provisions of this paragraph, the authority will use the calculation or estimate of the applicant’s or as the case may be, the applicant’s partner’s income and capital made by the Secretary of State for the purpose of determining the award of state pension credit¹⁰⁹.

(2) Where the calculation or estimate provided by the Secretary of State includes an amount taken into account in that determination in respect of net income, the authority may only adjust that amount so far as necessary to take into account—

(a) the amount of any savings credit payable;

(b) in respect of any dependent children of the applicant, child care charges taken into account under paragraph 54(1)(c) (calculation of income on a weekly basis);

(i) lone parent’s earnings; or

(ii) payments of maintenance, whether under a court order or not, which is made or due to be made by—

(aa) the applicant’s former partner, or the applicant’s partner’s former partner; or

(bb) the parent of a child or young person where that child or young person is a member of the applicant’s family except where that parent is the applicant or the applicant’s partner;

(d) any amount to be disregarded by virtue of paragraph 10(1) of Schedule 4 (sums disregarded from applicant’s earnings);

(e) the income and capital of any partner of the applicant who is treated as a member of the applicant’s household under paragraph 8 (households), to the extent that it is not taken into account in determining the net income of the person claiming state pension credit;

(f) paragraph 31 (circumstances in which capital and income of a non-dependant is to be treated as applicant’s), if the authority determines that that provision applies in the applicant’s case;

(g) such further reduction (if any) as the authority thinks fit under section 13A(1)(c) of the 1992 Act¹¹⁰ (power of billing authority to reduce amount of council tax payable);

(h) any amount to be disregarded by virtue of paragraph 6 of Schedule 4 (sums to be disregarded from applicant’s income: pensioners).

(3) Paragraphs 37 to 42 (calculation of income: pensioners), and 54 to 58 (calculation of income: pensioners and persons who are not pensioners) do not apply to the amount of the net income to be taken into account under sub-paragraph (1), but do apply (so far as relevant) for the purpose of determining any adjustments to that amount which the authority makes under sub-paragraph (2).

(4) If sub-paragraph (5) applies, the authority must calculate the applicant’s capital in accordance with paragraphs 60, 62 to 65 and 67 of this scheme (calculation of capital: pensioners).

(5) This sub-paragraph applies if—

(a) the Secretary of State notifies the authority that the applicant’s capital has been determined as being £16,000 or less or the authority determines the applicant’s capital as being £16,000 or less;

(b) subsequent to that determination the applicant’s capital rises to more than £16,000; and

(c) the increase occurs whilst there is in force an assessed income period within the meaning of sections 6 and 9 of the State Pension Credit Act 2002¹¹¹.

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

(1) In determining the income of an applicant—

(a) who has, or

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

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