wsi/2025/59 — <div xmlns="http://www.w3.org/1999/xhtml"> <span xml:lang="en">The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Miscellaneous Amendments) (Wales) Regulations 2025</span> / <span xml:lang="cy">Rheoliadau Cynlluniau Gostyngiadau’r Dreth Gyngor (Gofynion Rhagnodedig a’r Cynllun Diofyn) (Diwygiadau Amrywiol) (Cymru) 2025</span> </div>

2025 No. 59 (W. 17) Council Tax, Wales The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Miscellaneous Amendments) (Wales) Regulations 2025 Made 22 January 2025 Coming into force 24 January 2025 The Welsh Ministers make the following Regulations in exercise of the powers conferred upon them by section 13A(4) and (5) of, and paragraphs 2 to 6 of Schedule 1B to, the Local Government Finance Act 1992 . In accordance with section 13A(8) of that Act, a draft of this instrument has been laid before, and approved by, resolution of Senedd Cymru . Title, coming into force, application and interpretation 1 1 The title of these Regulations is the Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Miscellaneous Amendments) (Wales) Regulations 2025. 2 These Regulations come into force on 24 January 2025. 3 These Regulations apply in relation to a council tax reduction scheme made for a financial year beginning on or after 1 April 2025. 4 In these Regulations— “ billing authority ” (“ awdurdod bilio ”) has the meaning given in section 1(2)(b) of the Local Government Finance Act 1992 (“ the 1992 Act ”); “ council tax reduction scheme ” (“ cynllun gostyngiadau’r dreth gyngor ”) means a scheme made by a billing authority in accordance with the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 , or the scheme that applies in default by virtue of paragraph 6(1)(e) of Schedule 1B to the 1992 Act. Amendments to the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 2 The Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 are amended in accordance with regulations 3 to 11. 3 In regulation 2(1) (interpretation)— a in the definition of “qualifying person”, after “the We Love Manchester Emergency Fund,” insert “the Victims of Overseas Terrorism Compensation Scheme,” ; b after the definition of “vaccine damage payment” insert— “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 ; . 4 In regulation 28(5) (persons treated as not being in Great Britain)— a in sub-paragraph (e)(ii), for “Destitution Domestic Violence concession” substitute “Migrant Victims of Domestic Abuse concession ” ; b after sub-paragraph (n) omit “or”; c after sub-paragraph (o) insert— 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; or 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. 5 In Schedule 1 (determining eligibility for a reduction: pensioners)— a in paragraph 3(1)— i in paragraph (a), for “£17.35” substitute “£18.70” ; ii in paragraph (b), for “£5.80” substitute “£6.25” ; b in paragraph 3(2)— i in paragraph (a), for “£256.00” substitute “£266.00” ; ii in paragraph (b), for “£256.00”, “£445.00” and “£11.55” substitute “£266.00”, “£463.00” and “£12.45” respectively; iii in paragraph (c), for “£445.00”, “£554.00” and “£14.50” substitute “£463.00”, “£577.00” and “£15.65” respectively; c in paragraph 3(9)(c), after “the We Love Manchester Emergency Fund” insert “, the Victims of Overseas Terrorism Compensation Scheme” ; d in paragraph 19(15)(c) (treatment of child care charges: pensioners), for “171ZZ” substitute “171ZZ6 ” ; e in paragraph 22(c) (disregard of changes in tax, contributions etc)— i after “Class 1 contributions under that Act,” insert “or” ; ii in the English language text, omit “or the amount specified in section 11(4)(a) of that Act (lower profits threshold in relation to Class 2 contributions)”; iii in the Welsh language text, omit “neu’r swm a bennir yn adran 11(4) o’r Ddeddf honno (trothwy elw isel mewn perthynas â chyfraniadau Dosbarth 2)”; f in paragraph 24(3) (calculation of deduction of tax and contributions of self-employed earners), omit paragraph (a) and the “and” after it. 6 In Schedule 2 (applicable amounts: pensioners)— a in column (2) of the Table in paragraph 1 (personal allowance)— i in sub-paragraph (1), for “£235.20” substitute “£244.40” ; ii in sub-paragraph (2), for “£352.00” substitute “£366.00” ; iii in sub-paragraph (3), for “£352.00” and “£116.80” substitute “£366.00” and “£121.60” respectively; b in column (2) of the Table in paragraph 2(1) (child or young person amounts), for “£83.24”, in both places it occurs, substitute “£84.66” ; c in paragraph 3 (family premium), for “£19.15” substitute “£19.48” ; d in the second column (amount) of the Table in paragraph 12 (amounts of premium specified in Part 3)— i in sub-paragraph (1), for “£81.50”, in both places it occurs, substitute “£82.90” and for “£163.00” substitute “£165.80” ; ii in sub-paragraph (2), for “£32.20” substitute “£32.75” ; iii in sub-paragraph (3), for “£80.01” substitute “£81.37” ; iv in sub-paragraph (4), for “£45.60” substitute “£46.40” . 7 In Schedule 5 (capital disregards: pensioners), in paragraph 16(1)(a), after “the We Love Manchester Emergency Fund,” insert “the Victims of Overseas Terrorism Compensation Scheme,” . 8 In Schedule 6 (determining eligibility for a reduction: persons who are not pensioners)— a in paragraph 5(1)— i in paragraph (a), for “£17.35” substitute “£18.70” ; ii in paragraph (b), for “£5.80” substitute “£6.25” ; b in paragraph 5(2)— i in paragraph (a), for “£256.00” substitute “£266.00” ; ii in paragraph (b), for “£256.00”, “£445.00” and “£11.55” substitute “£266.00”, “£463.00” and “£12.45” respectively; iii in paragraph (c), for “£445.00”, “£554.00” and “£14.50” substitute “£463.00”, “£577.00” and “£15.65” respectively; c in paragraph 5(9)(b), after “the We Love Manchester Emergency Fund” insert “, the Victims of Overseas Terrorism Compensation Scheme” ; d in paragraph 21(15)(c) (treatment of child care charges), for “171ZZ” substitute “171ZZ6” ; e in paragraph 23(c) (disregard of changes in tax, contributions etc)— i after “Class 1 contributions under that Act,” insert “or” ; ii in the English language text, omit “or the amount specified in section 11(4)(a) of that Act (lower profits threshold in relation to Class 2 contributions)”; iii in the Welsh language text, omit “neu’r swm a bennir yn adran 11(4) o’r Ddeddf honno (trothwy elw isel mewn perthynas â chyfraniadau Dosbarth 2)”; f in paragraph 25(3) (calculation of deduction of tax and contributions of self-employed earners), omit paragraph (a) and the “and” after it. 9 In Schedule 7 (applicable amounts: persons who are not pensioners)— a in column (2) of the Table in paragraph 1 (personal allowances)— i in sub-paragraph (1), for “£96.45”, in both places it occurs, substitute “£98.10” and for “£76.35” substitute “£77.65” ; ii in sub-paragraph (2), for “£96.45” substitute “£98.10” ; iii in sub-paragraph (3), for “£151.45” substitute “£154.00” ; b in column (2) of the Table in paragraph 3(1), for “£83.24”, in both places it occurs, substitute “£84.66” ; c in paragraph 4(1)(b) (family premium), for “£19.15” substitute “£19.48” ; d in the second column (amount) of the Table in paragraph 17 (amounts of premiums specified in Part 3)— i in sub-paragraph (1), for “£42.50” and “£60.60” substitute “£43.20” and “£61.65” respectively; ii in sub-paragraph (2), for “£81.50”, in both places it occurs, substitute “£82.90” and for “£163.00” substitute “£165.80” ; iii in sub-paragraph (3), for “£80.01” substitute “£81.37” ; iv in sub-paragraph (4), for “£45.60” substitute “£46.40” ; v in sub-paragraph (5), for “£32.20”, “£20.85” and “£29.75” substitute “£32.75”, “£21.20” and “£30.25” respectively; e in paragraph 23, for “£35.95” substitute “£36.55” ; f in paragraph 24, for “£47.70” substitute “£48.50” . 10 In Schedule 10 (capital disregards: persons who are not pensioners), in paragraph 29(1) after “the We Love Manchester Emergency Fund,” insert “the Victims of Overseas Terrorism Compensation Scheme,” . 11 In Schedule 12 (all applicants: matters that must be included in an authority’s scheme — procedural matters), after paragraph 7 insert— Applications: universal credit claimants 7A An application may be treated as made where— a a person has made a claim for universal credit, b the Secretary of State has supplied relevant information in relation to that person in accordance with section 131 of the Welfare Reform Act 2012 to the authority administering a council tax reduction, and c that person is liable to pay council tax to that authority. Amendments to the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013 12 The scheme set out in the Schedule to the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013 is amended in accordance with regulations 13 to 23. 13 In paragraph 2(1) (interpretation)— a in the definition of “qualifying person”, after “the We Love Manchester Emergency Fund,” insert “the Victims of Overseas Terrorism Compensation Scheme,” ; b after the definition of “vaccine damage payment” insert— “ 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; . 14 In paragraph 19(5) (class of person excluded from this scheme: persons treated as not being in Great Britain)— a in paragraph (e)(ii) for “Destitution Domestic Violence concession” substitute “Migrant Victims of Domestic Abuse concession” ; b at the end of paragraph (n) omit “or”; c after paragraph (o) insert— 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; or 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. 15 In paragraph 28 (non-dependant deductions: pensioners and persons who are not pensioners)— a in sub-paragraph (1)— i in paragraph (a), for “£17.35” substitute “£18.70” ; ii in paragraph (b), for “£5.80” substitute “£6.25” ; b in sub-paragraph (2)— i in paragraph (a), for “£256.00” substitute “£266.00” ; ii in paragraph (b), for “£256.00”, “£445.00” and “£11.55” substitute “£266.00”, “£463.00” and “£12.45” respectively; iii in paragraph (c), for “£445.00”, “£554.00” and “£14.50” substitute “£463.00”, “£577.00” and “£15.65” respectively; c in sub-paragraph (9)(b), after “the We Love Manchester Emergency Fund” insert “, the Victims of Overseas Terrorism Compensation Scheme” . 16 In paragraph 55(15)(c) (treatment of child care charges), for “171ZZ” substitute “171ZZ6” . 17 In paragraph 57(c) (disregard of changes in tax, contributions etc)— a after “Class 1 contributions under that Act,” insert “or” ; b in the English language text, omit “or the amount specified in section 11(4)(a) of that Act (lower profits threshold in relation to Class 2 contributions)”; c in the Welsh language text, omit “neu’r swm a bennir yn adran 11(4) o’r Ddeddf honno (trothwy elw isel mewn perthynas â chyfraniadau Dosbarth 2)”. 18 In paragraph 59(3) (calculation of deduction of tax and contributions of self-employed earners), omit paragraph (a) and the “and” after it. 19 In Schedule 1 (procedural matters), after paragraph 7 insert— Applications: universal credit claimants 7A An application may be treated as made where— a a person has made a claim for universal credit, b the Secretary of State has supplied relevant information in relation to that person in accordance with section 131 of the Welfare Reform Act 2012 to the authority administering a council tax reduction, and c that person is liable to pay council tax to that authority. 20 In Schedule 2 (applicable amounts: pensioners)— a in column (2) of the Table in paragraph 1 (personal allowance)— i in sub-paragraph (1), for “£235.20” substitute “£244.40” ; ii in sub-paragraph (2), for “£352.00” substitute “£366.00” ; iii in sub-paragraph (3), for “£352.00” and “£116.80” substitute “£366.00” and “£121.60” respectively; b in column (2) of the Table in paragraph 2(1) (child or young person amounts), for “£83.24”, in both places it occurs, substitute “£84.66” ; c in paragraph 3 (family premium), for “£19.15” substitute “£19.48” ; d in the second column (amount) of the Table in paragraph 12 (amounts of premium specified in Part 3)— i in sub-paragraph (1), for “£81.50” in both places it occurs, substitute “£82.90” and for “£163.00” substitute “£165.80” ; ii in sub-paragraph (2), for “£32.20” substitute “£32.75” ; iii in sub-paragraph (3), for “£80.01” substitute “£81.37” ; iv in sub-paragraph (4), for “£45.60” substitute “£46.40” . 21 In Schedule 3 (applicable amounts: persons who are not pensioners)— a in column (2) of the Table in paragraph 1 (personal allowances)— i in sub-paragraph (1), for “£96.45”, in both places it occurs, substitute “£98.10” and for “£76.35” substitute “£77.65” ; ii in sub-paragraph (2), for “£96.45” substitute “£98.10” ; iii in sub-paragraph (3), for “£151.45” substitute “£154.00” ; b in column (2) of the Table in paragraph 3(1) (amount), for “£83.24”, in both places it occurs, substitute “£84.66” ; c in paragraph 4(1)(b) (family premium), for “£19.15” substitute “£19.48” ; d in the second column (amount) of the Table in paragraph 17 (amount of premiums specified in Part 3)— i in sub-paragraph (1), for “£42.50” and “£60.60” substitute “£43.20” and “£61.65” respectively; ii in sub-paragraph (2), for “£81.50”, in both places it occurs, substitute “£82.90” and for “£163.00” substitute “£165.80” ; iii in sub-paragraph (3), for “£80.01” substitute “£81.37” ; iv in sub-paragraph (4), for “£45.60” substitute “£46.40” ; v in sub-paragraph (5), for “£32.20”, “£20.85” and “£29.75” substitute “£32.75”, “£21.20” and “£30.25” respectively; e in paragraph 23, for “£35.95” substitute “£36.55” ; f in paragraph 24, for “£47.70” substitute “£48.50” . 22 In Schedule 8 (capital disregards: pensioners), in paragraph 16(1)(a), after “the We Love Manchester Emergency Fund,” insert “the Victims of Overseas Terrorism Compensation Scheme,” . 23 In Schedule 9 (capital disregards: persons who are not pensioners), in paragraph 29(1), after “the We Love Manchester Emergency Fund,” insert “the Victims of Overseas Terrorism Compensation Scheme,” . Mark Drakeford Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers 22 January 2025 EXPLANATORY NOTE (This note is not part of the Regulations) These Regulations amend the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 (“ the Prescribed Requirements Regulations ”) and the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013 (“ the Default Scheme Regulations ”) made under section 13A(4) and (5) of, and Schedule 1B to, the Local Government Finance Act 1992. The Prescribed Requirements Regulations require each billing authority in Wales to make a scheme specifying the reductions that are to apply to amounts of council tax payable by persons, or classes of persons, whom the authority considers are in financial need. The Prescribed Requirements Regulations also set out the matters that must be included in such a scheme. The Default Scheme Regulations set out a scheme that will take effect, in respect of dwellings situated in the area of a billing authority, if that authority fails to make its own scheme. Regulation 3 inserts new definitions into the Prescribed Requirements Regulations as a consequence of other amendments made by these Regulations. Regulation 13 makes the same amendments to the Default Scheme Regulations. Regulation 28 of the Prescribed Requirements Regulations provides that persons “treated as not being in Great Britain” are not eligible for a council tax reduction; that is, where they are not habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland. Regulation 4 of these Regulations amends regulation 28 of the Prescribed Requirements Regulations to provide for further exemptions from the habitual residence test for persons displaced by violence in Sudan, Israel, the West Bank, the Gaza Strip, East Jerusalem, the Golan Heights or Lebanon, dependent on immigration status, and for those who are given temporary leave to stay in the United Kingdom under the Migrant Victims of Domestic Abuse concession (which replaces the Destitution Domestic Violence concession). The same amendments are made to paragraph 19(5) of the Default Scheme Regulations by regulation 14. The amendments made to the Prescribed Requirements Regulations by regulations 5(a) and (b), 6, 8(a) and (b) and 9 uprate certain figures used to calculate whether a person is entitled to a reduction, and if so, the amount of that reduction. The uprated figures apply to non-dependant deductions (adjustments made to the maximum amount of a reduction that a person can receive taking into account adults living in the dwelling who are not the applicant’s dependants) and the applicable amount (the amount against which an applicant’s income is compared to determine the reduction, if any, which the applicant may be entitled to receive). A number of other figures are also uprated to reflect changes to various other entitlements. The same amendments are made to the Default Scheme Regulations by regulations 15(a) and (b), 20 and 21. Regulations 5(c), 7, 8(c) and 10 amend the provisions of the Prescribed Requirements Regulations which relate to the income or capital of an applicant for a council tax reduction which is to be disregarded in calculating that reduction. The amendments add to the list of “capital disregards” payments under the Victims of Overseas Terrorism Compensation Scheme. The same amendments are made by regulations 15(c), 22 and 23 to the Default Scheme Regulations. Regulations 5(d) and 8(d) amend the Prescribed Requirements Regulations to update a previous reference in relation to statutory parental bereavement pay. The same amendments are made to the Default Scheme Regulations by regulation 16. Regulations 5(e) and (f) and 8(e) and (f) amend the Prescribed Requirements Regulations following the introduction of treating self-employed earners with profits at or above the small profits threshold as having actually paid Class 2 National Insurance contributions (“NICs”) and removal of liability to pay Class 2 NICs. The amendments remove legislative references and provisions relating to liability to pay Class 2 NICs so that the legislation continues to work as intended. The same amendments are made by regulations 17 and 18 in relation to the Default Scheme Regulations. Regulation 11 amends the Prescribed Requirements Regulations to permit an application for a council tax reduction to be treated as made where a person has claimed universal credit and the Secretary of State has provided the administering billing authority with information about that claim. The same amendment is made to the Default Scheme Regulations by regulation 19. The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Local Government Finance Reform Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales .