The Council Tax Reduction Schemes (Default Scheme) (England) Regulations 2012

Made: 16th November 2012

Laid before Parliament: 22nd November 2012

Coming into force: 18th December 2012

The Secretary of State makes the following Regulations in exercise of the powers conferred by section 113(1) and (2) of, and paragraph 4 of Schedule 1A to, the Local Government Finance Act 1992[^f00001]:

Citation, commencement and application

1

• (1) These Regulations may be cited as the Council Tax Reduction Schemes (Default Scheme) (England) Regulations 2012 and come into force on 18th December 2012.

• (2) These Regulations apply in relation to billing authorities in England.

Default scheme

2

The scheme set out in the Schedule to these Regulations is the scheme prescribed for the purposes of paragraph 4 of Schedule 1A to the Local Government Finance Act 1992.

SCHEDULE — Council Tax Reduction Scheme (Default Scheme) 2013

PART 1 — Introduction

Introduction

1

This scheme relates to the financial year beginning with 1st April 2013 and may be cited as the Council Tax Reduction Scheme (Default Scheme) 2013.

PART 2 — Interpretation

Interpretation

2

• (1) In this scheme—

• “the 1992 Act” means the Local Government Finance Act 1992;

• “Abbeyfield Home” means an establishment run by the Abbeyfield Society including all bodies corporate or unincorporated which are affiliated to that society;

• “adoption leave” means a period of absence from work on ordinary or additional adoption leave by virtue of section 75A or 75B of the Employment Rights Act 1996[^f00002];

• “an AFIP” means an armed forces independence payment payable in accordance with an armed and reserve forces compensation scheme established under section 1(2) of the Armed Forces (Pensions and Compensation) Act 2004[^f00003];

• “alternative maximum council tax reduction” means the amount determined in accordance with paragraph 31 and Schedule 4;

• “applicable amount” means—in relation to a pensioner, the amount calculated in accordance with paragraph 25 and Schedule 2, andin relation to a person who is not a pensioner, the amount calculated in accordance with—paragraph 26 and Schedule 3; orparagraph 28,as the case may be;

• “applicant” means a person who has made an application;

• “application” means an application for a reduction under this scheme;

• “assessment period” means—in relation to pensioners—in relation to the earnings of a self-employed earner, the period determined in accordance with paragraph 43 for the purpose of calculating the weekly earnings of the applicant; orin relation to any other income, the period determined in accordance with paragraph 40 for the purpose of calculating the weekly income of the applicant;in relation to persons who are not pensioners, such period as is set out in paragraphs 47 to 49 over which income falls to be calculated;

• “attendance allowance” means—an attendance allowance under Part 3 of the SSCBA[^f00004];an increase of disablement pension under section 104 or 105 of that Act;a payment by virtue of article 14, 15, 16, 43 or 44 of the Personal Injuries (Civilians) Scheme 1983[^f00005] or any analogous payment; orany payment based on need for attendance which is paid as part of a war disablement pension;

• “the authority” means a billing authority in relation to whose area this scheme has effect by virtue of paragraph 4(6) of Schedule 1A to the 1992 Act;

• “basic rate” has the meaning given by the Income Tax Act 2007[^f00006];

• “the benefit Acts” means the SSCBA, the Jobseekers Act 1995[^f00007], the State Pension Credit Act 2002[^f00008] and the Welfare Reform Act 2007[^f00009];

• “board and lodging accommodation” means accommodation provided to a person or, if he is a member of a family, to him or any other member of his family, for a charge which is inclusive of the provision of that accommodation and at least some cooked or prepared meals which both are cooked or prepared (by a person other than the person to whom the accommodation is provided or a member of his family) and are consumed in that accommodation or associated premises;

• “care home” has the meaning given by section 3 of the Care Standards Act 2000[^f00010] and in Scotland means a care home service within the meaning given by section 2(3) of the Regulation of Care (Scotland) Act 2001[^f00011] and in Northern Ireland means a nursing home within the meaning of Article 11 of the Health and Personal Social Services (Quality, Improvement and Regulation) (Northern Ireland) Order 2003[^f00012] or a residential care home within the meaning of Article 10 of that Order;

• “the Caxton Foundation” means the charitable trust of that name established on 28th March 2011 out of funds provided by the Secretary of State for the benefit of certain persons suffering from hepatitis C and other persons eligible for payment in accordance with its provisions;

• “child” means a person under the age of 16;

• “child benefit” has the meaning given by section 141 of the SSCBA[^f00013];

• “child tax credit” means a child tax credit under section 8 of the Tax Credits Act 2002[^f00014];

• “close relative” means a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister, or if any of the preceding persons is one member of a couple, the other member of that couple;

• “concessionary payment” means a payment made under arrangements made by the Secretary of State with the consent of the Treasury which is charged either to the National Insurance Fund or to a Departmental Expenditure Vote to which payments of benefit or tax credits under the benefit Acts or the Tax Credits Act 2002[^f00015] are charged;

• “contributory employment and support allowance” means a contributory allowance under Part 1 of the Welfare Reform Act 2007[^f00016];

• “council tax benefit” means council tax benefit under Part 7 of the SSCBA;

• “couple” has the meaning given by paragraph 4;

• “designated office” means the office of the authority designated by it for the receipt of applications—by notice upon or with a form supplied by it for the purpose of making an application; orby reference upon or with such a form to some other document available from it and sent by electronic means or otherwise on application and without charge; orby any combination of the provisions set out in paragraphs (a) and (b);

• “disability living allowance” means a disability living allowance under section 71 of the SSCBA[^f00017];

• “earnings” has the meaning given by paragraph 41, 44, 51 or 53 as the case may be;

• “the Eileen Trust” means the charitable trust of that name established on 29th March 1993 out of funds provided by the Secretary of State for the benefit of persons eligible for payment in accordance with its provisions;

• “electronic communication” has the same meaning as in section 15(1) of the Electronic Communications Act 2000[^f00018];

• “employed earner” is to be construed in accordance with section 2(1)(a) of the SSCBA[^f00019] and also includes a person who is in receipt of a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay or statutory maternity pay;

• “the Employment, Skills and Enterprise Scheme” means a scheme under section 17A (schemes for assisting persons to obtain employment: “work for your benefit” schemes etc.) of the Jobseekers Act 1995[^f00020] known by that name and provided pursuant to arrangements made by the Secretary of State that is designed to assist claimants for job-seekers allowance to obtain employment, including self-employment, and which may include for any individual work-related activity (including work experience or job search);

• “employment zone” means an area within Great Britain designated for the purposes of section 60 of the Welfare Reform and Pensions Act 1999[^f00021] and an “employment zone programme” means a programme established for such an area or areas designed to assist claimants for a jobseeker’s allowance to obtain sustainable employment;

• “enactment” includes an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament;

• “extended reduction” means a reduction under this scheme for which a person is eligible under Part 12 (extended reductions);

• “extended reduction period” means the period for which a person is in receipt of an extended reduction in accordance with paragraph 89, 96 or 101;

• “extended reduction (qualifying contributory benefits)” means a reduction under this scheme for which a person is eligible in accordance with paragraph 88 or 95;

• “family” has the meaning given by paragraph 6;

• “the Fund” means moneys made available from time to time by the Secretary of State for the benefit of persons eligible for payment in accordance with the provisions of a scheme established by him on 24th April 1992 or, in Scotland, on 10th April 1992;

• “guarantee credit” is to be construed in accordance with sections 1 and 2 of the State Pension Credit Act 2002;

• “a guaranteed income payment” means a payment made under article 15(1)(c) (injury benefits) or 29(1)(a) (death benefits) of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011[^f00022];

• “housing benefit” means housing benefit under Part 7 of the SSCBA;

• “an income-based jobseeker’s allowance” and “a joint-claim jobseeker’s allowance” have the meanings given by section 1(4) of the Jobseekers Act 1995[^f00023];

• “income-related employment and support allowance” means an income-related allowance under Part 1 of the Welfare Reform Act 2007;

• “independent hospital”—in England means a hospital as defined by section 275 of the National Health Service Act 2006[^f00024] that is not a health service hospital as defined by that section;in Wales has the meaning given by section 2 of the Care Standards Act 2000[^f00025]; andin Scotland means an independent health care service as defined by section 10F of the National Health Service (Scotland) Act 1978[^f00026];

• “the Independent Living Fund (2006)” means the Trust of that name established by a deed dated 10th April 2006 and made between the Secretary of State for Work and Pensions of the one part and Margaret Rosemary Cooper, Michael Beresford Boyall and Marie Theresa Martin of the other part;

• “invalid carriage or other vehicle” means a vehicle propelled by a petrol engine or by electric power supplied for use on the road and to be controlled by the occupant;

• “the London Bombings Relief Charitable Fund” means the company limited by guarantee (number 5505072), and registered charity of that name established on 11th July 2005 for the purpose of (amongst other things) relieving sickness, disability or financial need of victims (including families or dependants of victims) of the terrorist attacks carried out in London on 7th July 2005;

• “lone parent” means a person who has no partner and who is responsible for and a member of the same household as a child or young person;

• “the Macfarlane (Special Payments) Trust” means the trust of that name, established on 29th January 1990 partly out of funds provided by the Secretary of State, for the benefit of certain persons suffering from haemophilia;

• “the Macfarlane (Special Payments) (No. 2) Trust” means the trust of that name, established on 3rd May 1991 partly out of funds provided by the Secretary of State, for the benefit of certain persons suffering from haemophilia and other beneficiaries;

• “the Macfarlane Trust” means the charitable trust, established partly out of funds provided by the Secretary of State to the Haemophilia Society, for the relief of poverty or distress among those suffering from haemophilia;

• “main phase employment and support allowance” means an employment and support allowance where the calculation of the amount payable in respect of the applicant includes a component under section 2(1)(b) or 4(2)(b) of the Welfare Reform Act 2007[^f00027] except in Part 1 of Schedule 3;

• “maternity leave” means a period during which a woman is absent from work because she is pregnant or has given birth to a child, and at the end of which she has a right to return to work either under the terms of her contract of employment or under Part 8 of the Employment Rights Act 1996[^f00028];

• “maximum council tax reduction amount” means the amount determined in accordance with paragraph 29;

• “member of a couple” means a member of a married or unmarried couple;

• “MFET Limited” means the company limited by guarantee (number 7121661) of that name, established for the purpose in particular of making payments in accordance with arrangements made with the Secretary of State to persons who have acquired HIV as a result of treatment by the NHS with blood or blood products;

• “mobility supplement” means—in relation to pensioners, a supplement to which paragraph 5(1)(a)(vii) of Schedule 5 refers;in relation to persons who are not pensioners, a supplement to which paragraph 13 of Schedule 8 refers;

• “mover” means an applicant who changes the dwelling in which the applicant is resident, and in respect of which the applicant is liable to pay council tax, from a dwelling in the area of the authority to a dwelling in the area of a second authority;

• “net earnings” means such earnings as are calculated in accordance with paragraph 42 or 52, as the case may be;

• “net profit” means such profit as is calculated in accordance with paragraph 61;

• “new dwelling” means, for the purposes of the definition of “second authority” and paragraphs 91, 98 and 103, the dwelling to which an applicant has moved, or is about to move, in which the applicant will be resident;

• “non-dependant” has the meaning given by paragraph 9;

• “occasional assistance” means any payment or provision made by a local authority, the Welsh Ministers or the Scottish Ministers for the purposes of—meeting, or helping to meet an immediate short-term need—arising out of an exceptional event or exceptional circumstances, orthat needs to be met to avoid a risk to the well-being of an individual, andenabling qualifying individuals to establish or maintain a settled home, and—“local authority” has the meaning given by section 270(1) of the Local Government Act 1972[^f00029]; and“qualifying individuals” means individuals who have been, or without the assistance might otherwise be—in prison, hospital, an establishment providing residential care or other institution, orhomeless or otherwise living an unsettled way of life;and “local authority” means a local authority in England within the meaning of the Local Government Act 1972[^f00030];

• “occupational pension” means any pension or other periodical payment under an occupational pension scheme but does not include any discretionary payment out of a fund established for relieving hardship in particular cases;

• “occupational pension scheme” has the same meaning as in section 1 of the Pension Schemes Act 1993[^f00031];

• “partner”, in relation to a person, means—where that person is a member of a couple, the other member of that couple;subject to paragraph (c), where that person is polygamously married to two or more members of his household, any such member to whom he is married; orwhere that person is polygamously married and has an award of universal credit with the other party to the earliest marriage that still subsists, that other party to the earliest marriage;

• “paternity leave” means a period of absence from work on ordinary paternity leave by virtue of section 80A or 80B of the Employment Rights Act 1996 or on additional paternity leave by virtue of section 80AA or 80BB of that Act[^f00032];

• “pension fund holder” means with respect to a personal pension scheme or an occupational pension scheme, the trustees, managers or scheme administrators, as the case may be, of the scheme concerned;

• “pensionable age” has the meaning given by the rules in paragraph 1 of Schedule 4 to the Pensions Act 1995[^f00033];

• “pensioner” has the meaning given by paragraph 3(2)(a);

• “person on income support” means a person in receipt of income support;

• “person treated as not being in Great Britain” has the meaning given by paragraph 21;

• “person who is not a pensioner” has the meaning given by paragraph 3(2)(b);

• “personal independence payment” has the meaning given by Part 4 of the Welfare Reform Act 2012[^f00034];

• “personal pension scheme” means—a personal pension scheme as defined by section 1 of the Pension Schemes Act 1993[^f00035];an annuity contract or trust scheme approved under section 620 or 621 of the Income and Corporation Taxes Act 1988[^f00036] or a substituted contract within the meaning of section 622(3) of that Act which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(f) of Schedule 36 to the Finance Act 2004[^f00037];a personal pension scheme approved under Chapter 4 of Part 14 of the Income and Corporation Taxes Act 1988 which is treated as having become a registered pension scheme by virtue of paragraph 1(1)(g) of Schedule 36 to the Finance Act 2004;

• “policy of life insurance” means any instrument by which the payment of money is assured on death (except death by accident only) or the happening of any contingency dependent on human life, or any instrument evidencing a contract which is subject to payment of premiums for a term dependent on human life;

• “polygamous marriage” means any marriage to which paragraph 5 applies;

• “qualifying age for state pension credit” means (in accordance with section 1(2)(b) and (6) of the State Pension Credit Act 2002[^f00038])—in the case of a woman, pensionable age; orin the case of a man, the age which is pensionable age in the case of a woman born on the same day as the man;

• “qualifying contributory benefit” means—severe disablement allowance;incapacity benefit;contributory employment and support allowance;

• “qualifying income-related benefit” means—income support;income-based jobseeker’s allowance;income-related employment and support allowance;

• “qualifying person” means a person in respect of whom payment has been made from the Fund, the Eileen Trust, MFET Limited, the Skipton Fund, the Caxton Foundation or the London Bombings Relief Charitable Fund;

• “reduction week” means a period of seven consecutive days beginning with a Monday and ending with a Sunday;

• “relative” means a close relative, grandparent, grandchild, uncle, aunt, nephew or niece;