The remaining provisions of the Council Tax Reduction and Council Tax (Discounts) (Miscellaneous Amendment) (No. 2) (Scotland) Regulations 2022 came into force on 3 November 20221. The Regulations were made by the Scottish Ministers on 8 September 2022 and laid before the Scottish Parliament on 9 September 20221. Regulations 3(1), 5(1) and 7 had already come into force on 12 October 20221.
The Regulations amend three sets of rules: the Council Tax Reduction (Scotland) Regulations 2021, the Council Tax Reduction (State Pension Credit) (Scotland) Regulations 2012 and the Council Tax (Discounts) (Scotland) Regulations 19921. Among the changes, regulation 3(3) provides that the payments comprising the £650 low income cost of living payment announced by the Chancellor of the Exchequer on 24 May 2022, where made to a person in receipt of working tax credit, are not to be counted as capital in establishing entitlement to council tax reduction1. An equivalent disregard is inserted into the pension age regulations1.
The Regulations also change how certain people who resided in Ukraine are treated. Regulation 3(1) amends the definition of "non-dependant" in the working age regulations so that it does not cover any person who normally resides with a council tax reduction applicant and who resided in Ukraine immediately before 1 January 2022, left Ukraine in connection with the Russian invasion which took place on 24 February 2022 and, under section 3ZA of the Immigration Act 1971, does not require leave to enter or remain in the United Kingdom1. The explanatory note states this captures Irish citizens1. Regulation 5(2) makes an equivalent amendment to the pension age regulations, and regulation 7 makes a corresponding change to the council tax discount rules for persons formerly residing in Ukraine1.
Regulation 8 revokes regulations 1 and 8 to 12 of the Council Tax Reduction (Scotland) Amendment (Coronavirus) Regulations 2021 and regulations 1 and 6 of the Council Tax Reduction (Scotland) Amendment (No. 3) (Coronavirus) Regulations 20211. Regulation 5(1) omits the definition of "one-off payment of £500 to NHS and social care workers" from the pension age regulations1.
"these Regulations come into force on 3 November 2022"
Why it matters for households
For people in Scotland receiving council tax reduction, the treatment of the £650 cost of living payment as capital applies where the payment is made to a person in receipt of working tax credit1. Capital rules can affect how much reduction a household is entitled to, so the disregard means those payments are not counted in that calculation from 3 November 20221.
The change to the definition of "non-dependant" affects how a household's reduction is worked out where someone who resided in Ukraine immediately before 1 January 2022 lives with a council tax reduction applicant1. Non-dependant rules can reduce the amount of reduction awarded, and the amendment removes such people from that definition in the working age and pension age regulations1. The equivalent change to the discount regulations affects council tax discounts for persons formerly residing in Ukraine1.
The revocations remove coronavirus-era amendments from the statute book1. The Regulations do not set out new payment amounts for households; the figures they refer to are the £650 cost of living payment and the £500 NHS and social care worker payment1.
What happens next
The Regulations state that the remaining provisions came into force on 3 November 2022, with regulations 3(1), 5(1) and 7 having come into force on 12 October 20221. No further commencement dates are set out in the Regulations1.
Turn2usFree benefits calculator and grants search from a charity
Citizens AdviceFree advice on money, consumer and legal problems in England and Wales
GOV.UKOfficial information on tax, benefits and government services
MoneyHelperFree, impartial money and pensions guidance, set up by government