Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, I am publishing the summary of responses to the recent consultation and confirming proposed changes to council tax discounts, disregards, and exemptions in Wales following a comprehensive review. The Local Government Finance (Wales) Act 2024 enables improvements to and simplification of the legal framework to aid clarity and accessibility. A review has been undertaken of 53 categories to ensure they remain relevant, operational and fit for purpose.
The consultation ran for 12 weeks from 23 May to 15 August 2025 and received 66 responses from a range of stakeholders, including representative bodies, local authorities, advice organisations and other members of the public.
Overall, respondents were supportive of many of the proposals, particularly those aimed at simplifying outdated provisions and promoting greater fairness. A wide range of thoughtful and constructive comments were received, and I am grateful to all stakeholders for their engagement. These contributions will inform our next steps helping to shape improvements that modernise the system of council tax discounts, disregards and exemptions, which in turn, supports a range of policy goals and our commitment to a fairer council tax.
The summary of consultation responses is available here Proposed changes to Council Tax discounts, disregarded persons and exemptions | GOV.WALES which sets out the next steps for each proposal in more detail and confirms how improvements will be taken forward to deliver the intended policy aims.
The Welsh Government has already confirmed that no changes will be made to the 25% one adult discount, and this will be restated in regulations. The regulations will uprate financial thresholds in the apprentice disregard and remove redundant categories for carers. Exemptions A and C will in future apply to newly purchased properties, removing disincentives to renovate or purchase long term empty properties. To ensure the council tax rules for empty properties align with the Welsh Government’s broader policies on long-term empty homes, we intend to introduce a time-limit of one year on the council tax exemption H, for the small number of properties held empty for future use by ministers of religion. We will also amend exemption F on properties awaiting probate, to apply for up to 2 years from the date of the deceased's death or until probate is granted, whichever comes first, and 12-months after the grant of probate. Following feedback, exemption U and the corresponding disregarded person category will be known in future as the Significant Cognitive Impairment category, with an improved definition reducing stigma.
I am pleased to confirm the proposed new exemption will be created for emergency temporary refuge accommodation. This acknowledges the unique circumstances and operational challenges of providing places of safety for survivors of violence against women, domestic abuse and sexual violence.
As part of this review, the Welsh Government has considered the provisions under exemption E, which currently apply when a hospital is deemed a person’s sole or main residence. Due to the mixed views received in response to this proposal, we do not intend to make any changes to this exemption at this time.
I will bring forward the necessary regulations in due course, with the aim of implementing changes from 1 April 2026. These improvements contribute to the delivery of our Programme for Government commitment to a fairer council tax.