Background and Purpose
The Homes for Ukraine Sponsorship Scheme (the “HFU Scheme”) provides a route for those affected by the conflict in Ukraine to enter the UK if they have a named sponsor who can provide them with accommodation.
The purpose of The Council Tax (Amendments Relating to Discount Disregards and Exempt Dwellings) (Wales) Regulations 2022 (the “Regulations”) is to ensure that households who host individuals under the HFU Scheme (a “relevant Ukranian person”) will not lose out on council tax discounts or exemptions as a result of housing additional persons.
For the purposes of calculating council tax, certain classes of people are ‘disregarded’. This means they’re not counted when calculating how many people live in a property. This is relevant in determining whether homes are eligible for a discount on their council tax bills. To negate a relevant Ukraninian person from affecting the council tax status of their sponsors, Regulation 2 of the Regulations amends the Council Tax (Additional Provisions for Discount Disregards) Regulations 1992 to disregard such individuals.
In addition, certain dwellings (such as homes occupied exclusively by students) are exempt from paying council tax. Such dwellings are listed in the Council Tax (Exempt Dwellings) Order 1992 (the “Exempt Dwellings Order”). Regulation 3 of these Regulations amends the Exempt Dwellings Order to ensure that there is no loss of an existing exemption where a household hosts a relevant Ukranian person.
A Regulatory Impact Assessment (“RIA”), outlined in the Explanatory Memorandum, has been undertaken in respect of these Regulations.
Procedure
Negative
The Regulations were made by the Welsh Ministers before they were laid before the Senedd. The Senedd can annul the Regulations within 40 days (excluding any days when the Senedd is: (i) dissolved, or (ii) in recess for more than four days) of the date they were laid before the Senedd.
Technical Scrutiny
The following point is identified for reporting under Standing Order 21.2 in respect of this instrument.
1. Standing Order 21.2(v) – that for any particular reason its form or meaning needs further explanation.
The Explanatory Note states that these Regulations amend the Exempt Dwellings Order to:
“[…] provide that exemptions relating to occupied dwellings where individuals admitted to the United Kingdom under the Homes for Ukraine Scheme reside in such dwellings in England, also apply to dwellings in Wales”.
It is unclear why Regulation 3(4) of these Regulations inserts the words “in England” into Article 2(3A) of the Exempt Dwellings Order in respect of Wales.
Article 2(3A) provides that occupation by a relevant Ukranian person is to be disregarded in considering whether a dwelling is ‘occupied’ in respect of eleven classes of dwellings (B, D, E, F, H, I, J, K, L, Q and T) in article 3 of the Exempt Dwellings Order.
The rationale for expressly limiting article 2(3A) to England is not explained and seems contrary to the apparent policy aim in the Explanatory Note and Memorandum. A Welsh Government response is required.
Merits Scrutiny
The following two points are identified for reporting under Standing Order 21.3 in respect of this instrument.
2. Standing Order 21.3(ii) – that it is of political or legal importance or gives rise to issues of public policy likely to be of interest to the Senedd.
The Explanatory Memorandum states that these Regulations ensure that:
“[…] host households who offer accommodation to people from Ukraine under the ‘Homes for Ukraine Scheme’ do not incur any additional council tax costs”. (emphasis added)
The rationale for limiting these Regulations to individuals sponsored under the HFU Scheme is not explained in the Explanatory Memorandum.
Under the ‘Appendix Ukraine Scheme’ to the Immigration Rules, persons affected by the conflict in Ukraine may qualify for permission to enter the UK under the following schemes:
· The HFU Scheme - allowing Ukrainian nationals and their family members to come to the UK if they have a named sponsor who can provide them with accommodation for a minimum of six months; and the
· Ukraine Family Scheme (the “UFS”) – allowing Ukrainian nationals to join UK-based family members, or extend their stay in the UK.
At a UK level as at 28 June 2022, a total of 98,400 visas had been issued under the HFU Scheme, and 44,100 under the the UFS.
As drafted, these Regulations extend to households who host people under the HFU Scheme, but not to those hosted under the UFS. In practice, this means that households who host additional family members under the UFS may lose existing exemptions and discounts for council tax.
The Welsh Government is asked to explain why these Regulations do not extend to those who have permission to enter the UK under the Ukraine Family Scheme.
3. Standing Order 21.3(ii) – that it is of political or legal importance or gives rise to issues of public policy likely to be of interest to the Senedd.
The final paragraph of the Explanatory Note to these Regulations states that after considering the Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments:
“[…] it was not considered necessary to carry out a regulatory impact assessment […]”
However, an RIA has been undertaken in respect of these Regulations. It is set out in paragraph 6 (and subsequent sub-paragraphs) of the Explanatory Memorandum.
Whilst the Explanatory Note is not part of the Regulations, this discrepancy could be misleading.
Welsh Government response
A Welsh Government response is required in respect of the technical reporting point, and both merits points.
Legal Advisers
Legislation, Justice and Constitution Committee
04 July 2022