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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(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 2002[^f00069] (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 B[^f00070]; and

(b) persons who are not pensioners who fall within class C or D[^f00071].

(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 SSCBA[^f00072] 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 2000[^f00073] (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 1989[^f00074] 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 2002[^f00075], or the Adoption Agencies (Scotland) Regulations 2009[^f00076], or the Adoption (Northern Ireland) Order 1987[^f00077].

(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 1955[^f00078];

(b) the Air Force Act 1955[^f00079];

(d) the Matrimonial Proceedings (Children) Act 1958[^f00081];

(e) the Social Work (Scotland) Act 1968[^f00082];

(f) the Family Law Reform Act 1969[^f00083];

(g) the Children and Young Persons Act 1969[^f00084];

(h) the Matrimonial Causes Act 1973[^f00085];

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

(j) the Domestic Proceedings and Magistrates’ Courts Act 1978[^f00087];

(k) the Adoption and Children (Scotland) Act 2007[^f00088];

(l) the Family Law Act 1986[^f00089];

(m) the Children Act 1989[^f00090];

(n) the Children (Scotland) Act 1995[^f00091];

(o) the Armed Forces Act 2006[^f00092]; ...

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

(p) the Legal Aid, Sentencing and Punishment of Offenders Act 2012[^f00093].

Non-dependants

9

(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 Act[^f00094] (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 2007[^f00095];

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 1983[^f00096], or, in Scotland, under the provisions of the Mental Health (Care and Treatment) (Scotland) Act 2003[^f00097] or the Criminal Procedure (Scotland) Act 1995[^f00098], or in Northern Ireland, under Article 4 or 12 of the Mental Health (Northern Ireland) Order 1986[^f00099]; and

(b) on temporary release from detention in accordance with Rules made under the provisions of the Prison Act 1952[^f00100] or the Prisons (Scotland) Act 1989[^f00101].

(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/EC[^f00102];

(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)[^f00103] ; 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 1999[^f00105] 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 1999[^f00106];

“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 £16,000[^f00108].

(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 pensioner[^f00109] 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 2005[^f00110].

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 2008[^f00111];

“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 2005[^f00112].

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 2012[^f00113].

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 2012[^f00114] (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 1973[^f00115] or section 2 of the Enterprise and New Towns (Scotland) Act 1990[^f00116]; 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 credit[^f00117].

(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 Act[^f00118] (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 2002[^f00119].

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,

an award of universal credit the authority must, subject to the following provisions of this paragraph, use the calculation or estimate of the income of the applicant, or the applicant and the applicant’s partner jointly (as the case may be), made by the Secretary of State for the purpose of determining the award of universal credit.

(2) The authority must adjust the amount of the income referred to in sub-paragraph (1) by multiplying the amount by 12 and dividing the product by 52.

(3) The authority must only adjust the amount of the income as adjusted in accordance with sub-paragraph (2) so far as necessary to take into account—

(a) the amount of the award of universal credit, determined in accordance with sub-paragraph (4);

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

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

(4) The amount for the award of universal credit to be taken into account for the purposes of sub-paragraph (3)(a) is to be determined by multiplying the amount of the award of universal credit by 12 and dividing the product by 52.

(5) Paragraph 31 (income and capital of non-dependant to be treated as applicant’s) applies for the purpose of determining any adjustments which fall to be made to the figure for income under sub-paragraph (3).

(6) In determining the capital of an applicant—

(a) who has, or

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

an award of universal credit, the authority must use the calculation or estimate of the capital of the applicant, or the applicant and the applicant’s partner jointly (as the case may be), made by the Secretary of State for the purpose of determining the award of universal credit[^f00120].

CHAPTER 4 — Income: other pensioners

Calculation of income and capital where state pension credit is not payable: pensioners

35

Where neither paragraph 32 (pensioner in receipt of guarantee credit) nor 33 (applicant in receipt of savings credit only: pensioners) applies in the applicant’s case, the applicant’s income and capital is to be calculated or estimated in accordance with paragraphs 36 to 43, and 54 to 59 (calculations of income) and Chapter 7 of this Part (calculation of capital).

Meaning of “income”: pensioners

36

(1) For the purposes of classes A and B in this scheme, “income” (“incwm”) means income of any of the following descriptions—

(a) earnings;

(b) working tax credit;

(d) income from annuity contracts (other than retirement pension income);

(e) a war disablement pension or war widow’s or widower’s pension;

(f) a foreign war disablement pension or war widow’s or widower’s pension;

(g) a guaranteed income payment;

(h) a payment made under article 29(1)(c) of the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011[^f00121], in any case where article 31(2)(c) applies;

(i) income from capital other than capital disregarded under Part 1 of Schedule 8;

(j) social security benefits, other than retirement pension income or any of the following benefits—

(i) disability living allowance;

(ii) personal independence payment;

(iii) an AFIP;

(iv) attendance allowance payable under section 64 of the SSCBA (entitlement to attendance allowance);

(v) an increase of disablement pension under section 104 (increase for constant attendance) or 105 of the SSCBA (increase for exceptionally severe disablement);

(vi) child benefit;

(vii) any guardian’s allowance payable under section 77 of the SSCBA (guardian’s allowance);

(viii) any increase for a dependant, other than the applicant’s partner, payable in accordance with Part 4 of the SSCBA (increases for dependants);

(ix) any—

(aa) social fund payment made under Part 8 of the SSCBA (the social fund); or

(bb) occasional assistance;

(x) Christmas bonus payable under Part 10 of the SSCBA (Christmas bonus for pensioners);

(xi) housing benefit;

(xii) council tax benefit;

(xiii) bereavement support payment under section 30 of the Pensions Act 2014;

(xiv) statutory sick pay;

(xv) statutory maternity pay;

(xvi) ... statutory paternity pay payable under Part 12ZA of the SSCBA (statutory paternity pay)[^f00122];

(xvia) statutory shared parental pay payable under Part 12ZC of the SSCBA;

(xvib) statutory parental bereavement pay under Part 12ZD of SSCBA;

(xvic) statutory neonatal care pay;

(xvii) additional statutory paternity pay payable under Part 12ZA of the SSCBA;

(xviii) statutory adoption pay payable under Part 12ZB of the SSCBA (statutory adoption pay);

(xix) any benefit similar to those mentioned in the preceding provisions of this paragraph payable under legislation having effect in Northern Ireland;

(xx) universal credit;

(k) all foreign social security benefits which are similar to the social security benefits prescribed above;

(l) a payment made—

(i) under article 30 of the Naval, Military and Air Forces Etc (Disablement and Death) Service Pensions Order 2006[^f00123], in any case where article 30(1)(b) applies; or

(ii) under article 12(8) of that Order (unemployability allowances: children who have reached the child’s age limit), in any case where sub-paragraph (b) of article 12(8) applies;

(m) a pension paid by a government to victims of National Socialist persecution;

(n) payments under a scheme made under the Pneumoconiosis etc (Worker’s Compensation) Act 1979[^f00124];

(o) payments made towards the maintenance of the applicant by the applicant’s spouse, civil partner, former spouse or former civil partner or towards the maintenance of the applicant’s partner by that person’s spouse, civil partner, former spouse or former civil partner, including payments made—

(i) under a court order;

(ii) under an agreement for maintenance; or

(iii) voluntarily;

(p) payments due from any person in respect of board and lodging accommodation provided by the applicant;

(q) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

(r) any payment in respect of any—

(i) book registered under the Public Lending Right Scheme 1982[^f00125]; or

(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982;

(s) any payment, other than a payment ordered by a court or made in settlement of a claim, made by or on behalf of a former employer of a person on account of the early retirement of that person on grounds of ill-health or disability;

(t) any sum payable by way of pension out of money provided under—

(i) the Civil List Act 1837[^f00126];

(ii) the Civil List Act 1937[^f00127];

(iii) the Civil List Act 1952[^f00128];

(iv) the Civil List Act 1972[^f00129]; or

(v) the Civil List Act 1975[^f00130];

(u) any income in lieu of that specified in paragraphs (a) to (r);

(v) any payment of rent made to an applicant who—

(i) owns the freehold or leasehold interest in any property or is a tenant of any property;

(ii) occupies part of the property; and

(iii) has an agreement with another person allowing that person to occupy that property on payment of rent;

(w) any payment made at regular intervals under an equity release scheme;

(x) PPF periodic payments within the meaning of section 17(1) of the State Pension Credit Act 2002.

(2) Where the payment of any social security benefit referred to in sub-paragraph (1) is subject to any deduction (other than an adjustment specified in sub-paragraph (4)) the amount to be taken into account under sub-paragraph (1) is to be the amount before the deduction is made.

(3) Where an award of any working tax credit or child tax credit is subject to a deduction by way of recovery of an overpayment of working tax credit or child tax credit which arose in a previous tax year the amount to be taken into account under sub-paragraph (1) is to be the amount of working tax credit or child tax credit awarded less the amount of that deduction.

(4) The adjustments specified in this sub-paragraph are those made in accordance with—

(a) the Social Security (Overlapping Benefits) Regulations 1979[^f00131];

(b) the Social Security (Hospital In-Patients) Regulations 2005[^f00132];

(c) section 30DD or section 30E of the SSCBA[^f00133] (reductions in incapacity benefit in respect of pensions and councillor’s allowances);

(d) section 3 of the Welfare Reform Act 2007 (deductions from contributory employment and support allowance in respect of pensions and councillor’s allowances) and regulations made under it.

(5) In sub-paragraph (1)(w), “equity release scheme” (“cynllun rhyddhau ecwiti”) means a loan—

(a) made between a person (“the lender”) and the applicant;

(b) by means of which a sum of money is advanced by the lender to the applicant by way of payments at regular intervals; and

(c) which is secured on a dwelling in which the applicant owns an estate or interest and which the applicant occupies as the applicant’s home.

Calculation of weekly income: pensioners

37

(1) Except in a case where sub-paragraph (2), (3A), (4A) or (5) applies, for the purposes of calculating the weekly income of an applicant who is a pensioner, where the period in respect of which a payment is made—

(a) does not exceed a week, the whole of that payment is to be included in the applicant’s weekly income;

(b) exceeds a week, the amount to be included in the applicant’s weekly income is to be determined—

(i) in a case where that period is a month, by multiplying the amount of the payment by 12 and dividing the product by 52;

(ii) in a case where that period is three months, by multiplying the amount of the payment by 4 and dividing the product by 52;

(iii) in a case where that period is a year, by dividing the amount of the payment by 52;

(iv) in any other case, by multiplying the amount of the payment by 7 and dividing the product by the number of days in the period in respect of which it is made.

(2) Sub-paragraph (3) applies where—

(a) the applicant’s regular pattern of work is such that the applicant does not work the same hours every week; or

(b) the amount of the applicant’s income fluctuates and has changed more than once.

(3) The weekly amount of that applicant’s income is to be determined—

(a) if, in a case to which sub-paragraph (2)(a) applies, there is a recognised cycle of work, by reference to the applicant’s average weekly income over the period of the complete cycle (including, where the cycle involves periods in which the applicant does no work, those periods but disregarding any other absences); or

(b) in any other case, on the basis of—

(i) the last two payments if those payments are one month or more apart;

(ii) the last four payments if the last two payments are less than one month apart; or

(iii) calculating or estimating such other payments as may, in the particular circumstances of the case, enable the applicant’s average weekly income to be determined more accurately.

(3A) Income calculated pursuant to sub-paragraphs (2) and (3) must be taken into account—

(a) in the case of an application, on the date on which the application was made or treated as made, and the first day of each reduction week thereafter, regardless of when those earnings were actually received;

(b) in the case of an application or a reduction under a scheme where the applicant commences employment, the day on which the applicant commences that employment, and the first day of each reduction week thereafter, regardless of when those earnings were actually received; or

(c) in the case of an application or a reduction under a scheme where the applicant’s average weekly earnings from employment change, the day on which the applicant’s earnings from employment change, so as to require recalculation under this paragraph, and the first day of each reduction week thereafter, regardless of when those earnings were actually received.

(4) For the purposes of sub-paragraph (3)(b) the last payments are the last payments before the date the application was made or treated as made.

(4A) An applicant’s earnings from employment as an employed earner not calculated pursuant to sub-paragraphs (2) and (3) must be taken into account—

(a) in the case of an application, on the date on which the application was made or treated as made, and the first day of each reduction week thereafter, regardless of when those earnings were actually received;

(b) in the case of an application or a reduction under a scheme where the applicant commences employment, the day on which the applicant commences that employment, and the first day of each reduction week thereafter, regardless of when those earnings were actually received; or

(c) in the case of an application or a reduction under a scheme where the applicant’s average weekly earnings from employment change, the day on which the applicant’s earnings from employment change and the first day of each reduction week thereafter, regardless of when those earnings were actually received.

(5) If the applicant is entitled to receive a payment to which sub-paragraph (6) applies, the amount of that payment is to be treated as if made in respect of a period of a year.

(6) This sub-paragraph applies to—

(a) royalties or other sums paid as a consideration for the use of, or the right to use, any copyright, design, patent or trade mark;

(b) any payment in respect of any—

(i) book registered under the Public Lending Right Scheme 1982; or

(ii) work made under any international public lending right scheme that is analogous to the Public Lending Right Scheme 1982; and

(7) The period under which any benefit under the benefit Acts is to be taken into account is to be the period in respect of which that benefit is payable.

(8) Where payments are made in a currency other than Sterling, the value of the payment is to be determined by taking the Sterling equivalent on the date the payment is made.

(9) The sums specified in Schedule 4 are to be disregarded in calculating—

(a) the applicant’s earnings; and

(b) any amount to which sub-paragraph (6) applies where the applicant is the first owner of the copyright, design, patent or trademark, or an original contributor to the book or work referred to in sub-paragraph (6)(b).

(10) For the purposes of sub-paragraph (9)(b), and for that purpose only, the amounts specified in sub-paragraph (6) are to be treated as though they were earnings.

(11) Income specified in Schedule 5 is to be disregarded in the calculation of the applicant’s income.

(12) Schedule 8 (capital disregards: pensioners) has effect so that—

(a) the capital specified in Part 1 is disregarded for the purpose of determining an applicant’s income; and

(b) the capital specified in Part 2 is disregarded for the purpose of determining an applicant’s income under paragraph 68 (calculation of tariff income from capital: pensioners).

(13) In the case of any income taken into account for the purpose of calculating a person’s income any amount payable by way of tax is disregarded.

Earnings of employed earners: pensioners

38

(1) Subject to sub-paragraph (2), “earnings” (“enillion”), in the case of employment as an employed earner who is a pensioner, means any remuneration or profit derived from that employment and includes—

(a) any bonus or commission;

(b) any payment in lieu of remuneration except any periodic sum paid to an applicant on account of the termination of that applicant’s employment by reason of redundancy;

(d) any holiday pay;

(e) any payment by way of a retainer;

(f) any payment made by the applicant’s employer in respect of expenses not wholly, exclusively and necessarily incurred in the performance of the duties of the employment, including any payment made by the applicant’s employer in respect of—

(i) travelling expenses incurred by the applicant between the applicant’s home and place of employment;

(ii) expenses incurred by the applicant under arrangements made for the care of a member of the applicant’s family owing to the applicant’s absence from home;

(g) the amount of any payment by way of a non-cash voucher which has been taken into account in the computation of a person’s earnings in accordance with Part 5 of Schedule 3 to the Social Security (Contributions) Regulations 2001[^f00134];

(h) statutory sick pay and statutory maternity pay payable by the employer under the SSCBA;

(i) statutory paternity pay payable under Part 12ZA of the SSCBA;

(j) statutory adoption pay payable under Part 12ZB of the SSCBA;

(ja) statutory shared parental pay payable under Part 12ZC of the SSCBA;

(jb) statutory parental bereavement pay under Part 12ZD of SSCBA;

(jc) statutory neonatal care pay;

(k) any sums payable under a contract of service—

(i) for incapacity for work due to sickness or injury; or

(ii) by reason of pregnancy or confinement.

(2) Earnings does not include—

(a) subject to sub-paragraph (3), any payment in kind;

(b) any payment in respect of expenses wholly, exclusively and necessarily incurred in the performance of the duties of the employment;

(d) any lump sum payment made under the Iron and Steel Re-adaptation Benefits Scheme;

(e) any payment of compensation made pursuant to an award by an employment tribunal established under the Employment Tribunals Act 1996[^f00135] in respect of unfair dismissal or unlawful discrimination;

(f) any payment in respect of expenses arising out of the applicant’s participation in a service user group.

(3) Sub-paragraph (2)(a) does not apply in respect of any non-cash voucher referred to in sub-paragraph (1)(g).

Calculation of net earnings of employed earners: pensioners

39

(1) For the purposes of paragraph 54 (calculation of income on a weekly basis), the earnings of an applicant derived or likely to be derived from employment as an employed earner to be taken into account must, subject to paragraph 37(4) (calculation of weekly income: pensioners) and Schedule 4, be that applicant’s net earnings.

(2) For the purposes of sub-paragraph (1) net earnings must, except where sub-paragraph (5) applies, be calculated by taking into account the gross earnings of the applicant from that employment over the assessment period, less—

(a) any amount deducted from those earnings by way of—

(i) income tax;

(ii) primary Class 1 contributions under the SSCBA;

(b) one-half of any sum paid by the applicant by way of a contribution towards an occupational pension scheme;

(c) one-half of the amount calculated in accordance with sub-paragraph (4) in respect of any qualifying contribution payable by the applicant; and

(d) where those earnings include a payment which is payable under any enactment having effect in Northern Ireland and which corresponds to statutory sick pay, statutory maternity pay, ordinary or additional statutory paternity pay, , statutory shared parental pay , statutory parental bereavement pay , statutory neonatal care pay or statutory adoption pay, any amount deducted from those earnings by way of any contributions which correspond to primary Class 1 contributions under the SSCBA.

(3) In this paragraph “qualifying contribution” (“cyfraniad cymwys”)means any sum which is payable periodically as a contribution towards a personal pension scheme.

(4) The amount in respect of any qualifying contribution is to be calculated by multiplying the daily amount of the qualifying contribution by the number equal to the number of days in the assessment period; and for the purposes of this paragraph the daily amount of the qualifying contribution is to be determined—

(a) where the qualifying contribution is payable monthly, by multiplying the amount of the qualifying contribution by 12 and dividing the product by 365;

(b) in any other case, by dividing the amount of the qualifying contribution by the number equal to the number of days in the period to which the qualifying contribution relates.

(5) Where the earnings of an applicant are determined under paragraph 37(2)(b) (calculation of weekly income: pensioners) that applicant’s net earnings are to be calculated by taking into account those earnings over the assessment period, less—

(a) an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the basic rate of tax applicable to the assessment period less only the personal reliefs to which the applicant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 ... as is appropriate to the applicant’s circumstances but, if the assessment period is less than a year, the earnings to which the basic rate of tax is to be applied and the amount of the personal reliefs deductible under this sub-paragraph is to be calculated on a pro rata basis;

(b) an amount equivalent to the amount of the primary Class 1 contributions that would be payable by the applicant under the SSCBA in respect of those earnings if such contributions were payable; and

(c) one-half of any sum which would be payable by the applicant by way of a contribution towards an occupational or personal pension scheme, if the earnings so estimated were actual earnings.

Calculation of earnings of self-employed earners: pensioners

40

(1) Where the earnings of an applicant who is a pensioner consist of earnings from employment as a self-employed earner, the weekly amount of that applicant’s earnings is to be determined by reference to the applicant’s average weekly earnings from that employment—

(a) over a period of one year; or

(b) where the applicant has recently become engaged in that employment or there has been a change which is likely to affect the normal pattern of business, over such other period (“computation period”) as may, in the particular case, enable the weekly amount of the applicant’s earnings to be determined more accurately.

(2) For the purposes of determining the weekly amount of earnings of an applicant to whom sub-paragraph (1)(b) applies, the applicant’s earnings over the computation period are to be divided by the number equal to the number of days in that period and the product multiplied by 7.

(3) The period over which the weekly amount of an applicant’s earnings is calculated in accordance with this paragraph is to be the applicant’s assessment period.

Earnings of self-employed earners: pensioners

41

(1) Subject to sub-paragraph (2), “earnings” (“enillion”), in the case of employment as a self-employed earner who is a pensioner, means the gross income of the employment.

(2) “Earnings” in the case of employment as a self-employed earner does not include—

(a) where an applicant occupies a dwelling as the applicant’s home and the applicant provides in that dwelling board and lodging accommodation for which payment is made, those payments;

(b) any payment made by a local authority to an applicant—

(i) with whom a person is accommodated by virtue of arrangements made under section 22C or 23(2)(a) of the Children Act 1989[^f00137] (provision of accommodation and maintenance for a child whom they are looking after) or, as the case may be, section 26(1) of the Children (Scotland) Act 1995[^f00138] , or section 81 of the Social Services and Well-being (Wales) Act 2014; or

(ii) with whom a local authority fosters a child under the Looked After Children (Scotland) Regulations 2009[^f00139] or who is a kinship carer under those Regulations;

(c) any payment made by a voluntary organisation in accordance with section 59(1)(a) of the Children Act 1989 (provision of accommodation by voluntary organisations);

(d) any payment made to the applicant or the applicant’s partner for a person (“the person concerned”) who is not normally a member of the applicant’s household but is temporarily in the applicant’s care, by—

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