House of Commons Public Bill Committee Proceedings

Session 2012 - 13
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Other Bills before Parliament

Report Stage Proceedings: 21 May 2012
13

Local Government Finance Bill, continued

“(7A)
In this paragraph, “increase” means an increase under section 11C(1)(b)

(higher amount for second homes: England).”.’.

Secretary Eric Pickles

Agreed to  49

Page  47,  line  32  [Schedule  4],  after ‘schemes’ insert ‘: England’.

Secretary Eric Pickles

Agreed to  50

Page  47,  line  35  [Schedule  4],  after second ‘scheme’ insert ‘under section 13A(2)’.

John Healey

Not called  1

Page  48,  line  43  [Schedule  4],  at end insert—

‘(8A)
Before making regulations under sub-paragraph (8), the Secretary of State must

consult with local authorities regarding any proposed requirements for schemes.’.

Secretary Eric Pickles

Agreed to  51

Page  49,  line  7  [Schedule  4],  at end insert—

  ‘(10)
Regulations under sub-paragraph (8) may in particular set out provision to be

included in a scheme that is equivalent to—

(a)
provision made by a relevant enactment, or

(b)
provision that is capable of being made under a relevant enactment,


with such modifications as the Secretary of State thinks fit.

    (11)
Subject to compliance with regulations under sub-paragraph (8), a scheme may

make provision that is equivalent to—

(a)
provision made by a relevant enactment, or

(b)
provision that is capable of being made under a relevant enactment,


with such modifications as the authority thinks fit.

    (12)
For the purposes of sub-paragraphs (10) and (11), each of the following

enactments as it had effect on the day on which the Local Government Finance

Act 2012 was passed is a “relevant enactment”—

(a)
sections 131 to 133 of the Social Security Contributions and Benefits

Act 1992 (council tax benefit);

(b)
sections 134 to 137 of that Act (general provisions about income-

related benefits) so far as applying in relation to council tax benefit;

(c)
section 1 of the Social Security Administration Act 1992 (entitlement

to benefit dependent on claim) so far as applying in relation to council

tax benefit;

(d)
section 6 of that Act (regulations about council tax benefit

administration).’.

Report Stage Proceedings: 21 May 2012
14

Local Government Finance Bill, continued

Mr Nick Raynsford

Not selected  8

Page  49,  line  7  [Schedule  4],  at end insert—

‘(e)
require authorities to have regard to the impact of their scheme on—

(i)
the numbers of persons in its area expected to receive a greater

or lesser reduction in council tax than that which they had

been entitled to receive under council tax benefit, and the

amounts by which their entitlement is likely to increase or

reduce,

(ii)
the living standards of such persons,

(iii)
the financial incentive on persons below pensionable age to

seek or maintain employment.’.

Mr Nick Raynsford

Not called  9

Page  49,  line  15  [Schedule  4],  at end insert—

‘(d)
notify all persons within their area receiving council tax benefit on or

immediately following 1 April 2012, of the implications of the draft

scheme, including the estimated impact of that scheme on their living

standards.’.

Secretary Eric Pickles

Agreed to  52

Page  49,  line  16  [Schedule  4],  leave out ‘consultation under sub-paragraph (1)(a)

took place’ and insert ‘any step described in sub-paragraph (1) was taken’.

John Healey

Not called  2

Page  49,  line  22  [Schedule  4],  leave out sub-paragraphs (4) and (5).

Mr Nick Raynsford

John Healey

Not called  10

Page  49,  line  44  [Schedule  4],  leave out ‘2013’ and insert ‘2014’.

Secretary Eric Pickles

Agreed to  53

Page  49,  line  44  [Schedule  4],  at end insert ‘(or such other year as is specified in

section 8(4) of the Local Government Finance Act 2012)’.

Secretary Eric Pickles

Agreed to  54

Page  50,  line  2  [Schedule  4],  at end insert—

  ‘(3A)
The default scheme may in particular make provision that is equivalent to—

(a)
provision made by a relevant enactment, or

(b)
provision that is capable of being made under a relevant enactment,


with such modifications as the Secretary of State thinks fit.

Report Stage Proceedings: 21 May 2012
15

Local Government Finance Bill, continued

    (3B)
For the purposes of sub-paragraph (3A), each of the following enactments as

it had effect on the day on which the Local Government Finance Act 2012 was

passed is a “relevant enactment”—

(a)
sections 131 to 133 of the Social Security Contributions and Benefits

Act 1992 (council tax benefit);

(b)
sections 134 to 137 of that Act (general provisions about income-

related benefits) so far as applying in relation to council tax benefit;

(c)
section 1 of the Social Security Administration Act 1992 (entitlement

to benefit dependent on claim) so far as applying in relation to council

tax benefit;

(d)
section 6 of that Act (regulations about council tax benefit

administration).’.

Mr Nick Raynsford

Not called  11

Page  50,  line  2  [Schedule  4],  at end insert—

‘(3A)
The default scheme must be designed in such a way as to ensure, insofar as can

reasonably be assessed, that no person below pensionable age, in or seeking

employment, shall receive a lesser entitlement to a council tax reduction than that

to which they would have been entitled under council tax benefit.’.

Mr Nick Raynsford

Not called  12

Page  50,  line  2  [Schedule  4],  at end insert—

‘(3B)
If the default scheme has the effect of reducing or removing a reduction to which

any class of persons was entitled under council tax benefit, it must include such

transitional provision relating to that reduction or removal as the Secretary of

State, after consultation with representatives of local government, thinks fit.’.

Mr Nick Raynsford

John Healey

Not called  13

Page  50,  line  5  [Schedule  4],  leave out ‘2013’ and insert ‘2014’.

John Healey

Not called  3

Page  50,  line  14  [Schedule  4],  leave out sub-paragraphs (2) and (3).

Mr Nick Raynsford

Not selected  14

Page  50,  line  39  [Schedule  4],  at end insert—

‘(2A)
In circumstances where a deficit arises in the billing authority’s collection fund

the authority shall be able to make an application to the Secretary of State for a

payment to cover that deficit.’.

Secretary Eric Pickles

Agreed to  55

Page  51,  line  30  [Schedule  4],  after ‘benefit’ insert ‘, or who makes or has made a

claim for that benefit,’.

Report Stage Proceedings: 21 May 2012
16

Local Government Finance Bill, continued

Secretary Eric Pickles

Agreed to  56

Page  51,  line  31  [Schedule  4],  at end insert—

‘Schedule 1B

Section 13A

Council tax reduction schemes: Wales

Interpretation

1
In this Schedule—

(a)
“the regulations” means regulations under section

13A(2B);

(b)
“scheme” means council tax reduction scheme under the

regulations;

(c)
“specified” means specified in the regulations;

(d)
“specified authority” means a person or body required by

the regulations to make a scheme (and, in relation to a

particular scheme, means the authority which made the

scheme or is under a duty to make it).

Application of schemes

2    (1)
The regulations may—

(a)
prescribe, for each scheme that is to be made, the dwellings

to which that scheme is to apply;

(b)
require each scheme to state the dwellings to which it is to

apply.

      (2)
The regulations may prescribe—

(a)
the date by which each scheme is to be made, and

(b)
the first financial year to which it must relate.

Persons entitled to reductions

3    (1)
The regulations may prescribe—

(a)
classes of person who are to be entitled to a reduction under

schemes;

(b)
classes of person who must not be entitled to a reduction

under schemes.

      (2)
The regulations may—

(a)
allow specified authorities to determine (subject to

regulations under sub-paragraph (1)) classes of person who

are to be entitled to a reduction under schemes, or

(b)
provide that specified authorities may not determine such

classes.

      (3)
The regulations may require each scheme to state the classes of

person (prescribed under sub-paragraph (1)(a) or determined under

sub-paragraph (2)(a)) who are to be entitled to a reduction under the

scheme.

      (4)
Any class of person prescribed under sub-paragraph (1)(a) may be

determined by reference to, in particular, the matters listed in sub-

paragraph (7).

Report Stage Proceedings: 21 May 2012
17

Local Government Finance Bill, continued

      (5)
The regulations may require any class of person determined under

sub-paragraph (2)(a) to be determined by reference to specified

matters (which may include those listed in sub-paragraph (7)).

      (6)
If the regulations do not require a class a person to be determined as

mentioned in sub-paragraph (5), the specified authority may

determine that class by reference to, in particular, the matters listed

in sub-paragraph (7).

      (7)
Those matters are—

(a)
whether the Welsh Ministers consider, or the specified

authority considers, any person to be in financial need;

(b)
the income of any person liable to pay council tax in respect

of any dwelling to which a scheme is to apply;

(c)
the capital of any such person;

(d)
whether any such person is in receipt of any specified

benefit;

(e)
the income and capital of any other person who is a resident

of the dwelling, or whether any such person is in receipt of

any specified benefit;

(f)
the number of dependants of any person within paragraph

(b) or (e);

(g)
whether the person has made an application for the

reduction.

Reductions

4    (1)
The regulations may prescribe reductions, including minimum and

maximum reductions, to which persons in each class (whether

prescribed under paragraph 3(1)(a) or determined under paragraph

3(2)(a)) are to be entitled under schemes.

      (2)
The regulations may—

(a)
allow specified authorities to determine (subject to

regulations under sub-paragraph (1)) reductions to which

persons in each class set out in the scheme are to be

entitled, or

(b)
provide that specified authorities may not determine such

reductions.

      (3)
The regulations may require each scheme to set out the reductions

(whether prescribed under sub-paragraph (1) or determined under

sub-paragraph (2)(a)) to which persons in each class set out in the

scheme are to be entitled.

      (4)
Different reductions may be set out for different classes.

      (5)
A reduction under a scheme may be—

(a)
a discount calculated as a percentage of the amount which

would be payable apart from the scheme,

(b)
a discount of an amount set out in the scheme or to be

calculated in accordance with the scheme,

(c)
expressed as an amount of council tax to be paid (lower

than the amount which would be payable apart from the

scheme) which is set out in the scheme or is to be calculated

in accordance with it, or

Report Stage Proceedings: 21 May 2012
18

Local Government Finance Bill, continued

(d)
the whole amount of council tax (so that the amount

payable is nil).

Other matters

5    (1)
The regulations may require each scheme to state—

(a)
the procedure by which a person may apply for a reduction

under the scheme;

(b)
the procedure by which a person can make an appeal under

section 16 against any decision which affects the person’s

entitlement to a reduction under the scheme or the amount

of any reduction to which the person is entitled;

(c)
the procedure by which a person can apply to the relevant

billing authority for a reduction under section 13A(1)(b).

      (2)
In sub-paragraph (1)(c), the relevant billing authority for any

dwelling to which the scheme applies is the billing authority in

whose area the dwelling is situated.

      (3)
The regulations may prescribe requirements which must be met by

the procedure mentioned in sub-paragraph (1)(a) or (b).

6    (1)
The regulations may—

(a)
require other matters to be included in schemes;

(b)
allow schemes to make provision that is equivalent to

provision made by a relevant enactment, or provision that

is capable of being made under a relevant enactment, with

such modifications as specified authorities think fit;

(c)
prescribe the procedure which a specified authority must

follow when making a scheme (including requirements

regarding consultation and other steps to be taken before

and after making the scheme);

(d)
require or allow functions conferred by the regulations to

be exercised by specified authorities jointly with other

authorities;

(e)
prescribe a default scheme which is to take effect, if a

specified authority fails to make a scheme in accordance

with the regulations, in respect of dwellings to which that

scheme would have applied;

(f)
impose requirements on specified authorities relating to the

review, revision or replacement of schemes;

(g)
enable specified authorities to make reasonable charges for

the supply of copies of documents relating to schemes;

(h)
require specified authorities to provide to the Welsh

Ministers information about schemes.

      (2)
In particular, the regulations may under sub-paragraph (1)(a) set out

provision to be included in schemes, and a default scheme

prescribed under sub-paragraph (1)(d) may make provision, that is

equivalent to—

(a)
provision made by a relevant enactment, or

(b)
provision that is capable of being made under a relevant

enactment,


with such modifications as the Welsh Ministers think fit.

Report Stage Proceedings: 21 May 2012
19

Local Government Finance Bill, continued

      (3)
For the purposes of sub-paragraphs (1)(b) and (2), each of the

following enactments as it had effect on the day on which the Local

Government Finance Act 2012 was passed is a “relevant

enactment”—

(a)
sections 131 to 133 of the Social Security Contributions

and Benefits Act 1992 (council tax benefit);

(b)
sections 134 to 137 of that Act (general provisions about

income-related benefits) so far as applying in relation to

council tax benefit;

(c)
section 1 of the Social Security Administration Act 1992

(entitlement to benefit dependent on claim) so far as

applying in relation to council tax benefit;

(d)
section 6 of that Act (regulations about council tax benefit

administration).

Transitional provision

7    (1)
The regulations may make such transitional provision regarding the

commencement of schemes as the Welsh Ministers think fit.

      (2)
Such provision may include, in particular, provision for and in

connection with treating a person who is or was in receipt of council

tax benefit, or who makes or has made a claim for that benefit, as

having made an application for a reduction under a scheme.

Guidance

8
In exercising any function relating to schemes, a specified authority

must have regard to any guidance issued by the Welsh Ministers.”’.

Secretary Eric Pickles

Agreed to  57

Page  52,  line  7  [Schedule  4],  after ‘scheme’ insert ‘under section 13A(2)’.

Secretary Eric Pickles

Agreed to  58

Page  52,  line  11  [Schedule  4],  leave out ‘a billing authority’.

Secretary Eric Pickles

Agreed to  59

Page  52,  line  12  [Schedule  4],  at beginning insert ‘a billing authority in England or

a specified authority (within the meaning of Schedule 1B) in Wales’.

Secretary Eric Pickles

Agreed to  60

Page  52,  line  13  [Schedule  4],  at beginning insert ‘a billing authority’.



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