The Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Miscellaneous Amendments) (Wales) Regulations 2026

Made: 21 January 2026

Coming into force: 23 January 2026

The Welsh Ministers make the following Regulations in exercise of the powers conferred upon them by section 13A(4) and (5) of, and paragraphs 2 to 6 of Schedule 1B to, the Local Government Finance Act 1992[^f00001].

In accordance with the Senedd approval procedure applied by section 13A(8) of that Act, a draft of this Welsh statutory instrument was laid before, and approved by resolution of, Senedd Cymru[^f00002].

Title, coming into force, application and interpretation

1

• (1) The title of these Regulations is the Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Miscellaneous Amendments) (Wales) Regulations 2026.

• (2) These Regulations come into force on 23 January 2026.

• (3) These Regulations apply in relation to a council tax reduction scheme made for a financial year beginning on or after 1 April 2026.

• (4) In these Regulations—

• “billing authority” (“awdurdod bilio”) has the meaning given in section 1(2)(b) of the Local Government Finance Act 1992 (“the 1992 Act”);

• “council tax reduction scheme” (“cynllun gostyngiadau’r dreth gyngor”) means a scheme made by a billing authority in accordance with the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013[^f00003], or the scheme that applies in default by virtue of paragraph 6(1)(e) of Schedule 1B to the 1992 Act.

Amendments to the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013

2

The Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 are amended in accordance with regulations 3 to 12.

3

In regulation 2(1) (interpretation)—

• (a) after the definition of “invalid carriage or other vehicle” insert—

• “LGBT Financial Recognition Scheme payment” (“taliad Cynllun Cydnabyddiaeth Ariannol LHDT”) means a payment under the Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme administered under the authority of the Secretary of State for Defence;

• (b) after the definition of “MFET Limited” insert—

• “miscarriage of justice compensation payment” (“taliad digollediad camweinyddu cyfiawnder”) means— a payment made under section 133(1) of the Criminal Justice Act 1988[^f00004], or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence;

• (c) after the definition of “mover” insert—

• “neonatal care leave” (“absenoldeb gofal newydd-anedig”) means leave under section 80EF of the Employment Rights Act 1996[^f00005];

• (d) in the definition of “qualifying person” for “or a vaccine damage payment” substitute “, a vaccine damage payment, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment,”;

• (e) after the definition of “state pension credit” insert—

• “statutory neonatal care pay” (“tâl gofal newydd-anedig statudol”) means statutory neonatal care pay under section 171ZZ16 of the SSCBA[^f00006];

4

In regulation 3 (meaning of “pensioner” and “person who is not a pensioner”)—

• (a) the existing text becomes paragraph (1);

• (b) after that paragraph insert—

(2) For the purposes of sub-paragraphs (a)(ii)(bb) and (b)(ii)(bb) of paragraph (1) 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[^f00007] applies in respect of the award. (3) In this regulation— - “assessment period” (“cyfnod asesu”) has the same meaning as in the Universal Credit Regulations 2013[^f00008]; - “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.

5

In regulation 10(7) (remunerative work) after “parental bereavement leave” insert “, neonatal care leave”.

6

• (1) In regulation 28(5) (persons treated as not being in Great Britain)—

• (a) for sub-paragraph (j) substitute—

(j) in receipt of income support, an income-related employment and support allowance or universal credit;

• (b) after sub-paragraph (p) omit “or”;

• (c) after sub-paragraph (q) insert—

(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[^f00009], (bb) has a right of abode in the United Kingdom within the meaning of section 2[^f00010] of that Act, or (cc) in accordance with section 3ZA[^f00011] of that Act, does not require leave to enter or remain in the United Kingdom; (s) a person who (but see 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.

• (2) After regulation 28(5) insert—

(5A) Sub-paragraph (s) of 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.

7

In Schedule 1 (determining eligibility for a reduction: pensioners)—

• (a) in paragraph 3(1)—

• (i) in paragraph (a), for “£18.70” substitute “£20.05”;

• (ii) in paragraph (b), for “£6.25” substitute “£6.70”;

• (b) in paragraph 3(2)—

• (i) in paragraph (a), for “£266.00” substitute “£279.00”;

• (ii) in paragraph (b), for “£266.00”, “£463.00” and “£12.45” substitute “£279.00”, “£485.00” and “£13.35” respectively;

• (iii) in paragraph (c), for “£463.00”, “£577.00” and “£15.65” substitute “£485.00”, “£605.00” and “£16.80” respectively;

• (c) in paragraph 3(9)(c), after “the Victims of Overseas Terrorism Compensation Scheme” insert “, the Windrush Compensation Scheme”;

• (d) in paragraph 3(9)(d), after “Post Office compensation payment” insert “, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment;”;

• (e) after paragraph 3(9)(d) insert—

(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.

• (f) in paragraph 10(1)(j) (meaning of “income”: pensioners) after sub-paragraph (xvib) insert—

(xvic) statutory neonatal care pay;

• (g) in paragraph 12(1) (earnings of employed earners: pensioners), after paragraph (jb) insert—

(jc) statutory neonatal care pay;

• (h) in paragraph 13(2)(d) (calculation of net earnings of employed earners: pensioners), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (i) in paragraph 19 (treatment of child care charges: pensioners)—

• (i) in sub-paragraph (15), in the words before paragraph (a), after “parental bereavement leave” insert “, neonatal care leave”;

• (ii) in sub-paragraph (15)(a), after “parental bereavement leave” insert “, neonatal care leave”;

• (iii) in sub-paragraph (15)(c), before “or qualifying support” insert “, statutory neonatal care pay”;

• (iv) in sub-paragraph (16), in the words before paragraph (a), after “parental bereavement leave” insert “, neonatal care leave”;

• (v) in sub-paragraph (16)(b), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (vi) in sub-paragraph (16)(c), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”.

8

In Schedule 2 (applicable amounts: pensioners)—

• (a) in column (2) of the Table in paragraph 1 (personal allowance)—

• (i) in sub-paragraph (1), for “£244.40” substitute “£256.00”;

• (ii) in sub-paragraph (2), for “£366.00” substitute “£383.35”;

• (iii) in sub-paragraph (3), for “£366.00” and “£121.60” substitute “£383.35” and “£127.35” respectively;

• (b) in column (2) of the Table in paragraph 2(1) (child or young person amounts), for “£84.66”, in both places it occurs, substitute “£87.88”;

• (c) in paragraph 3 (family premium), for “£19.48” substitute “£20.22”;

• (d) in the second column (amount) of the Table in paragraph 12 (amounts of premium specified in Part 3)—

• (i) in sub-paragraph (1), for “£82.90”, in both places it occurs, substitute “£86.05” and for “£165.80” substitute “£172.10”;

• (ii) in sub-paragraph (2), for “£32.75” substitute “£33.99”;

• (iii) in sub-paragraph (3), for “£81.37” substitute “£84.46”;

• (iv) in sub-paragraph (4), for “£46.40” substitute “£48.15”.

9

In Schedule 5 (capital disregards: pensioners), in paragraph 16—

• (a) for sub-paragraph (1A) substitute—

(1A) Any Post Office compensation payment, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment.

• (b) in each of sub-paragraphs (2) to (3), (5) to (6) and (7) for “or a vaccine damage payment” substitute “, a vaccine damage payment, a Windrush Compensation Scheme payment, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment”;

• (c) after sub-paragraph (6A) insert—

(6B) 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 having been infected from contaminated blood products.

10

In Schedule 6 (determining eligibility for a reduction: persons who are not pensioners)—

• (a) in paragraph 5(1)—

• (i) in paragraph (a), for “£18.70” substitute “£20.05”;

• (ii) in paragraph (b), for “£6.25” substitute “£6.70”;

• (b) in paragraph 5(2)—

• (i) in paragraph (a), for “£266.00” substitute “£279.00”;

• (ii) in paragraph (b), for “£266.00”, “£463.00” and “£12.45” substitute “£279.00”, “£485.00” and “£13.35” respectively;

• (iii) in paragraph (c), for “£463.00”, “£577.00” and “£15.65” substitute “£485.00”, “£605.00” and “£16.80” respectively;

• (c) in paragraph 5(9)(b), after “the Victims of Overseas Terrorism Compensation Scheme” insert “, the Windrush Compensation Scheme”;

• (d) in paragraph 5(9)(ba), after “Post Office compensation payment” insert “, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment”;

• (e) after paragraph 5(9)(d) insert—

(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.

• (f) in paragraph 14(1)—

• (i) in paragraph (j), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (ii) in paragraph (k), after “parental bereavement leave” insert “, neonatal care leave”;

• (g) in paragraph 15(3)(d), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (h) in paragraph 21—

• (i) in sub-paragraph (15), in the words before paragraph (a), after “parental bereavement leave” insert “, neonatal care leave”;

• (ii) in sub-paragraph (15)(a), after “parental bereavement leave” insert “, neonatal care leave”;

• (iii) in sub-paragraph 15(c), before “or qualifying support” insert “, statutory neonatal care pay”;

• (iv) in sub-paragraph (16), in the words before paragraph (a), after “parental bereavement leave” insert “, neonatal care leave”;

• (v) in sub-paragraph 16(b), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (vi) in sub-paragraph 16(c), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”.

11

In Schedule 7 (applicable amounts: persons who are not pensioners)—

• (a) in column (2) of the Table in paragraph 1 (personal allowances)—

• (i) in sub-paragraph (1), for “£98.10”, in both places it occurs, substitute “£101.85” and for “£77.65” substitute “£80.60”;

• (ii) in sub-paragraph (2), for “£98.10” substitute “£101.85”;

• (iii) in sub-paragraph (3), for “£154.00” substitute “£159.85”;

• (b) in column (2) of the Table in paragraph 3(1), for “£84.66”, in both places it occurs, substitute “£87.88”;

• (c) in paragraph 4(1)(b) (family premium), for “£19.48” substitute “£20.22”;

• (d) in the second column (amount) of the Table in paragraph 17 (amounts of premiums specified in Part 3)—

• (i) in sub-paragraph (1), for “£43.20” and “£61.65” substitute “£44.85” and “£64.00” respectively;

• (ii) in sub-paragraph (2), for “£82.90”, in both places it occurs, substitute “£86.05” and for “£165.80” substitute “£172.10”;

• (iii) in sub-paragraph (3), for “£81.37” substitute “£84.46”;

• (iv) in sub-paragraph (4), for “£46.40” substitute “£48.15”;

• (v) in sub-paragraph (5), for “£32.75”, “£21.20” and “£30.25” substitute “£33.99”, “£22.00” and “£31.40” respectively;

• (e) in paragraph 23, for “£36.55” substitute “£37.95”;

• (f) in paragraph 24, for “£48.50” substitute “£50.35”.

12

In Schedule 10 (capital disregards: persons who are not pensioners), in paragraph 29—

• (a) for sub-paragraph (1A) substitute—

(1A) Any Post Office compensation payment, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment.

• (b) in each of sub-paragraphs (2) to (5) and (6) for “or a vaccine damage payment” substitute “, a vaccine damage payment, a Windrush Compensation Scheme payment, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment”;

• (c) after sub-paragraph (5A) insert—

(5B) 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 having been infected from contaminated blood products.

Amendments to the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013

13

The scheme set out in the Schedule to the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013[^f00012] is amended in accordance with regulations 14 to 28.

14

In paragraph 2(1) (interpretation)—

• (a) after the definition of “invalid carriage or other vehicle” insert—

• “LGBT Financial Recognition Scheme payment” (“taliad Cynllun Cydnabyddiaeth Ariannol LHDT”) means a payment under the Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme administered under the authority of the Secretary of State for Defence;

• (b) after the definition of “MFET Limited” insert—

• “miscarriage of justice compensation payment” (“taliad digollediad camweinyddu cyfiawnder”) means— a payment made under section 133(1) of the Criminal Justice Act 1988, or any other payment made by the Secretary of State, the Scottish Ministers or, in Northern Ireland, the Department of Justice, for the purpose of compensating a person— for a miscarriage of justice in criminal proceedings, or for being wrongfully charged with a criminal offence;

• (c) after the definition of “mover” insert—

• “neonatal care leave” (“absenoldeb gofal newydd-anedig”) means leave under section 80EF of the Employment Rights Act 1996;

• (d) in the definition of “qualifying person” for “or a vaccine damage payment” substitute “, a vaccine damage payment, an LGBT Financial Recognition Scheme payment or a miscarriage of justice compensation payment,”;

• (e) after the definition of “state pension credit” insert—

• “statutory neonatal care pay” (“tâl gofal newydd-anedig statudol”) means statutory neonatal care pay under section 171ZZ16 of the SSCBA;

15

In paragraph 3 (application of scheme: pensioners and persons who are not pensioners). after sub-paragraph (2) insert—

(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.

16

In paragraph 10(7) (remunerative work), after “parental bereavement leave” insert “, neonatal care leave”.

17

• (1) In paragraph 19(5) (persons treated as not being in Great Britain)—

• (a) for paragraph (j) substitute—

(j) in receipt of income support, an income-related employment and support allowance or universal credit;

• (b) after paragraph (p) omit “or”;

• (c) after paragraph (q) insert—

(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.

• (2) After paragraph 19(5) insert—

(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.

18

In paragraph 28 (non-dependant deductions: pensioners and persons who are not pensioners)—

• (a) in sub-paragraph (1)—

• (i) in paragraph (a), for “£18.70” substitute “£20.05”;

• (ii) in paragraph (b), for “£6.25” substitute “£6.70”;

• (b) in sub-paragraph (2)—

• (i) in paragraph (a), for “£266.00” substitute “£279.00”;

• (ii) in paragraph (b), for “£266.00”, “£463.00” and “£12.45” substitute “£279.00”, “£485.00” and “£13.35” respectively;

• (iii) in paragraph (c), for “£463.00”, “£577.00” and “£15.65” substitute “£485.00”, “£605.00” and “£16.80” respectively;

• (c) in sub-paragraph (9)(b) after “the Victims of Overseas Terrorism Compensation Scheme” insert “, the Windrush Compensation scheme”;

• (d) in sub-paragraph (9)(ba) after “Post Office compensation payment” insert “, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment”;

• (e) after sub-paragraph (9)(d) insert—

(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.

19

In paragraph 36(1)(j) (meaning of “income”: pensioners), after sub-paragraph (xvib) insert—

(xvic) statutory neonatal care pay;

20

In paragraph 38(1) (earnings of employed earners: pensioners), after paragraph (jb) insert—

(jc) statutory neonatal care pay;

21

In paragraph 39(2)(d) (calculation of net earnings of employed earners: pensioners), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”.

22

In paragraph 48(1) (earnings of employed earners: persons who are not pensioners)—

• (a) in paragraph (j), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (b) in paragraph (k), after “parental bereavement leave” insert “, neonatal care leave”.

23

In paragraph 49(3)(d), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”.

24

In paragraph 55 (treatment of child care charges)—

• (a) in sub-paragraph (15), in the words before paragraph (a), after “parental bereavement leave” insert “, neonatal care leave”;

• (b) in sub-paragraph (15)(a), after “parental bereavement leave” insert “, neonatal care leave”;

• (c) in sub-paragraph (15)(c), before “or qualifying support” insert “, statutory neonatal care pay”;

• (d) in sub-paragraph (16), in the words before paragraph (a), after “parental bereavement leave” insert “, neonatal care leave”;

• (e) in sub-paragraph (16)(b), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”;

• (f) in sub-paragraph (16)(c), after “statutory parental bereavement pay” insert “, statutory neonatal care pay”.

25

In Schedule 2 (applicable amounts: pensioners)—

• (a) in column (2) of the Table in paragraph 1 (personal allowance)—

• (i) in sub-paragraph (1)—

• (aa) in the English language text, for “£244.40” substitute “£256.00”;

• (bb) in the Welsh language text, for “£244.00” substitute “£256.00”;

• (ii) in sub-paragraph (2), for “£366.00” substitute “£383.35”;

• (iii) in sub-paragraph (3), for “£366.00” and “£121.60” substitute “£383.35” and “£127.35” respectively;

• (b) in column (2) of the Table in paragraph 2(1) (child or young person amounts), for “£84.66”, in both places it occurs, substitute “£87.88”;

• (c) in paragraph 3 (family premium), for “£19.48” substitute “£20.22”;

• (d) in the second column (amount) of the Table in paragraph 12 (amounts of premium specified in Part 3)—

• (i) in sub-paragraph (1), for “£82.90” in both places it occurs, substitute “£86.05” and for “£165.80” substitute “£172.10”;

• (ii) in sub-paragraph (2), for “£32.75” substitute “£33.99”;

• (iii) in sub-paragraph (3), for “£81.37” substitute “£84.46”;

• (iv) in sub-paragraph (4), for “£46.40” substitute “£48.15”.

26

In Schedule 3 (applicable amounts: persons who are not pensioners)—

• (a) in column (2) (amount) of the Table in paragraph 1 (personal allowances)—

• (i) in sub-paragraph (1), for “£98.10”, in both places it occurs, substitute “£101.85” and for “£77.65” substitute “£80.60”;

• (ii) in sub-paragraph (2), for “£98.10” substitute “£101.85”;

• (iii) in sub-paragraph (3), for “£154.00” substitute “£159.85”;

• (b) in column (2) (amount) of the Table in paragraph 3(1), for “£84.66”, in both places it occurs, substitute “£87.88”;

• (c) in paragraph 4(1)(b) (family premium), for “£19.48” substitute “£20.22”;

• (d) in the second column (amount) of the Table in paragraph 17 (amounts of premiums specified in Part 3)—

• (i) in sub-paragraph (1), for “£43.20” and “£61.65” substitute “£44.85” and “£64.00” respectively;

• (ii) in sub-paragraph (2), for “£82.90”, in both places it occurs, substitute “£86.05” and for “£165.80” substitute “£172.10”;

• (iii) in sub-paragraph (3), for “£81.37” substitute “£84.46”;

• (iv) in sub-paragraph (4), for “£46.40” substitute “£48.15”;

• (v) in sub-paragraph (5), for “£32.75”, “£21.20” and “£30.25” substitute “£33.99”, “£22.00” and “£31.40” respectively;

• (e) in paragraph 23, for “£36.55” substitute “£37.95”;

• (f) in paragraph 24, for “£48.50” substitute “£50.35”.

27

In Schedule 8 (capital disregards: pensioners), in paragraph 16—

• (a) for sub-paragraph (1A) substitute—

(1A) Any Post Office compensation payment, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment.

• (b) in each of sub-paragraphs (2) to (3), (5) to (6) and (7) for “or a vaccine damage payment” substitute “, a vaccine damage payment, Windrush Compensation Scheme payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment”;

• (c) after sub-paragraph (6A) insert—

(6B) 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 having been infected from contaminated blood products.

28

In Schedule 9 (capital disregards: persons who are not pensioners), in paragraph 29—

• (a) for sub-paragraph (1A) substitute—

(1A) Any Post Office compensation payment, vaccine damage payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment.

• (b) in each of sub-paragraphs (2) to (3) and (5) to (6) and (7) for “or a vaccine damage payment” substitute “, a vaccine damage payment, Windrush Compensation Scheme payment, LGBT Financial Recognition Scheme payment or miscarriage of justice compensation payment”;

• (c) after sub-paragraph (6A) insert—

(6B) 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 that person as a result of that person having been infected from contaminated blood products.

• (d) in sub-paragraph (7), in the English language text, at the start, for “n” substitute “In”.

Signed

Mark Drakeford — Cabinet Secretary for Finance and Welsh Language, one of the Welsh Ministers — 21 January 2026

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations amend the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 (“the Prescribed Requirements Regulations”) and the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013 (“the Default Scheme Regulations”) made under section 13A(4) and (5) of, and Schedule 1B to, the Local Government Finance Act 1992 (“the 1992 Act”).

The Prescribed Requirements Regulations require each billing authority in Wales to make a scheme specifying the reductions that are to apply to amounts of council tax payable by persons, or classes of persons, whom the authority considers are in financial need. The Prescribed Requirements Regulations also set out the matters that must be included in such a scheme.

The Default Scheme Regulations set out a scheme that will take effect, in respect of dwellings situated in the area of a billing authority, if that authority fails to make its own scheme.

Regulation 3 inserts new definitions into the Prescribed Requirements Regulations as a consequence of other amendments made by these Regulations. Regulation 14 makes the same amendments to the Default Scheme Regulations.

Regulations 7(c) to (e), 9, 10(c) to (e), and 12 amend provisions of the Prescribed Requirements Regulations regarding which payments are to be disregarded for the purposes of calculating entitlement to a reduction in relation to new and existing disregards. The new disregards cover payments pursuant to the Ministry of Defence Lesbian, Gay, Bisexual and Transgender Financial Recognition Scheme and payments made under miscarriage of justice schemes that have effect under section 133 of the Criminal Justice Act 1988 (c. 33). At the time of making these Regulations there are three such miscarriage of justice schemes (the Miscarriages of Justice Application Service in England and Wales and equivalent schemes in Scotland and Northern Ireland). The new disregards also cover extra-statutory payments made for similar purposes. Further amendments are made to existing provisions to ensure that particular forms of payments are disregarded in relation to non-dependant deductions and an applicant’s capital for the purposes of calculating entitlement to a reduction. The same amendments are made to the Default Scheme Regulations by regulations 18(c) to (e), 27 and 28(a) to (c).

Regulation 4 amends the definitions in the Prescribed Requirements Regulations of “pensioner” and a “person who is not a pensioner” to disregard any award of Universal Credit to which regulation 60A of the Universal Credit (Transitional Provisions) Regulations 2014 applies. The same amendment is made to the Default Scheme by regulation 15.

Regulation 6(1)(a) amends regulation 28 of the Prescribed Requirements Regulations to ensure that, where an individual is already receiving universal credit, there is no need to consider whether or not they are habitually resident in the United Kingdom, the Channel Islands, the Isle of Man or the Republic of Ireland, when deciding whether they are a person from abroad for the purposes of a council tax reduction. Any determination as to whether they are habitually resident (or subject to one of the other exceptions from the need to consider whether they are habitually resident) will already have been made when the claim for universal credit was allowed. The same amendment is made to the Default Scheme Regulations by regulation 17(1)(a).

Regulation 6(1)(b) and (c) and (2) also amends regulation 28 of the Prescribed Requirements Regulations to insert three new categories into the list of persons who are not to be treated as not being resident in Great Britain and who are therefore to be included in a council tax reduction scheme.

The first new category provides that a person who was residing in Israel, the West Bank, the Gaza Strip or East Jerusalem immediately before 23 June 2025, and who left those places as a consequence of the escalation in violence between Israel and Iran which commenced in June 2025, is not to be treated as not being in Great Britain. The second new category of exempt person is those who have leave to enter or remain in the United Kingdom granted in accordance with immigration rules made under section 3 of the Immigration Act1971 (c.77), a right of abode in the United Kingdom within the meaning given in section 2 of that Act, or do not require leave to enter or remain in the United Kingdom in accordance with section 3ZA of that Act, and where the person was residing in a country or territory when His Majesty’s Government provided public information to advise British nationals to leave a country or territory or has arranged the evacuation of British nationals from that country or territory. The third new category of exempt person is persons who are granted leave under immigration provisions which have been sanctioned by His Majesty’s Government as safe and legal humanitarian immigration routes. The same amendments are made to paragraph 19(5) of the Default Scheme Regulations by regulation 17(1)(b) and (c) and (2).

The amendments made to the Prescribed Requirements Regulations by regulations 7(a) and (b), 8, 10(a) and (b) and 11 uprate certain figures used to calculate whether a person is entitled to a reduction, and if so, the amount of that reduction. The uprated figures apply to non-dependant deductions (adjustments made to the maximum amount of a reduction that a person can receive taking into account adults living in the dwelling who are not the applicant’s dependants) and the applicable amount (the amount against which an applicant’s income is compared to determine the reduction, if any, which the applicant may be entitled to receive). A number of other figures are also uprated to reflect changes to various other entitlements. The same amendments are made to the Default Scheme Regulations by regulations 18(a) and (b), 25 and 26.

Regulations 5, 7(f) to (i), and 10(f) to (h) make various amendments to the Prescribed Requirements Regulations in consequence of the Neonatal Care (Leave and Pay) Act 2023 (c. 20), which makes provision for entitlements, leave and pay for employees with responsibility for children receiving neonatal care. The same amendments are made to the Default Scheme Regulations by regulations 16 and 19 to 24.

Regulation 28(d) corrects a minor typographical error in the English language text of the Default Scheme Regulations.

The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, a regulatory impact assessment has been prepared as to the likely costs and benefits of complying with these Regulations. A copy can be obtained from the Local Government Finance Reform Division, Welsh Government, Cathays Park, Cardiff, CF10 3NQ and is published on www.gov.wales.

Footnotes

[^f00001]: 1992 c. 14. Section 13A was substituted by section 10(1) of the Local Government Finance Act 2012 (c. 17). Schedule 1B was inserted by section 10(2) of, and paragraph 1 of Schedule 4 to, that Act. See section 116(1) of the Local Government Finance Act 1992 for the definition of “prescribed”. Section 13A of, and Schedule 1B to, the Local Government Finance Act 1992 are amended by section 19 of the Local Government Finance (Wales) Act 2024 (asc 6) which is not yet in force.

[^f00002]: The reference in section 13A(8) to the National Assembly for Wales now has effect as a reference to Senedd Cymru by virtue of section 150A(2) of the Government of Wales Act 2006 (c. 32), as amended by paragraph 2(7)(c) of Schedule 1 to the Senedd and Elections (Wales) Act 2020 (anaw 1).

[^f00003]: S.I. 2013/3029 (W. 301), amended by S.I. 2014/66 (W. 6), 2014/513, 2014/825 (W. 83), 2014/852, 2015/44 (W. 3), 2015/971, 2016/50 (W. 21), 2017/46 (W. 20), 2018/14 (W. 7), 2019/11 (W. 5), 2020/16 (W. 2), 2021/34 (W. 9), 2022/51 (W. 19), 2022/634, 2022/1329, 2023/47 (W. 6), 2023/1071, 2024/56 (W. 16) and 2025/59 (W. 17).

[^f00004]: 1988 c. 33.

[^f00005]: 1996 c. 18. Section 80EF was inserted by paragraph 2 of the Schedule to the Neonatal Care (Leave and Pay) Act 2023 (c. 20).

[^f00006]: Section 171ZZ16 was inserted by paragraph 5 of the Schedule to the Neonatal Care (Leave and Pay) Act 2023.

[^f00007]: S.I. 2014/1230, amended by S.I. 2024/611; there are other amending instruments but none is relevant to these Regulations.

[^f00008]: S.I. 2013/376. As to assessment periods see regulation 21 of those Regulations. Relevant amending instruments are S.I. 2014/2887 and 2018/65.

[^f00009]: 1971 c. 77.

[^f00010]: Section 2 was substituted by section 39(2) of the British Nationality Act 1981 (c. 61) and amended by S.I. 2019/745.

[^f00011]: Section 3ZA was inserted by section 2(2) of the Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 (c. 20).

[^f00012]: S.I. 2013/3035 (W. 303), amended by S.I. 2014/66 (W. 6), S.I. 2014/513, S.I. 2014/825 (W. 83), S.I. 2014/852, S.I. 2015/44 (W. 3), S.I. 2015/971, S.I. 2016/50 (W. 21), S.I. 2017/46 (W. 20), S.I. 2018/14 (W. 7), S.I. 2019/11 (W. 5), S.I. 2020/16 (W. 2), S.I. 2021/34 (W. 9), S.I. 2022/51 (W. 19), S.I. 2022/634, S.I. 2022/1329, S.I. 2023/47 (W. 6), S.I. 2023/1071, S.I. 2024/56 (W. 16) and S.I. 2025/59 (W. 17).