Background and Purpose
Council Tax Reduction Schemes (CTRS) are the mechanism by which local authorities in Wales provide support to low-income households in meeting their council tax liability.
These Regulations make amendments to the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 and the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013 (referred to collectively as “the 2013 CTRS Regulations”). It uprates certain figures used to calculate an applicant’s entitlement to a reduction under a CTRS, and the subsequent level of reduction.
In addition to uprating the financial figures, these Regulations make technical and consequential amendments to:
· Provide that where a person is in receipt of Universal Credit, and where relevant information has been shared with a local authority, then that authority may treat that as an intention to apply for CTRS and to process that application in accordance with the 2013 CTRS Regulations.
· Allow displaced persons from Sudan, Israel, Palestine and Lebanon access to the CTRS in Wales.
· Ensure that “no CTRS applicant living in Wales is negatively impacted because they have received a payment made under the Victims of Overseas Terrorism Compensation Scheme”, as explained in the Explanatory Memorandum to these Regulations.
· Mirror changes made in England to omit references to the “Lower Profits Threshold” for National Insurance Contributions, to reflect the fact that from 6 April 2024, self-employed people with profits above £12,570 (the lower profits threshold) are no longer liable to pay Class 2 NICs and instead are treated as having paid Class 2 NICs.
· Reflect the updated title of the Migrant Victims of Domestic Abuse Concession.
The Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS, issued a Written Statement in relation to these Regulations on 10 December 2024.
Procedure
Draft Affirmative.
The Welsh Ministers have laid a draft of the Regulations before the Senedd. The Welsh Ministers cannot make the Regulations unless the Senedd approves the draft Regulations.
Technical Scrutiny
The following point is identified for reporting under Standing Order 21.2 in respect of this instrument.
1. Standing Order 21.2(vi) – that its drafting appears to be defective or it fails to fulfil statutory requirements
In regulations 5(e)(ii), 8(e)(ii) and 17(b) of these Regulations, textual amendments are made to omit the phrase “or the amount specified in section 11(4)(a) of that Act (lower profits threshold in relation to Class 2 contributions)” from various provisions in the 2013 CTRS Regulations. However, the reference to “section 11(4)(a)” and the words “lower profits threshold” in that phrase were only introduced to the English language text by previous amendments made by regulation 5 of the Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022, which is a UK statutory instrument.
As a result, the existing Welsh language text of those various provisions does not appear to have been amended to include that reference and those words at any time. Therefore, in the Welsh text, the amendments made by regulations 5(e)(ii), 8(e)(ii) and 17(b) of these Regulations are incorrect when identifying the existing text to be omitted as including the reference “section 11(4)(a)” and the words “lower profits threshold” as they do not appear to have been inserted in the existing Welsh language text of the 2013 CTRS Regulations.
Merits Scrutiny
No points are identified for reporting under Standing Order 21.3 in respect of this instrument.
Welsh Government response
A Welsh Government response is required.
Legal Advisers
Legislation, Justice and Constitution Committee
23 December 2024