Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language
Today, I have laid the draft Council Tax Reduction Schemes (Prescribed Requirements and Default Scheme) (Miscellaneous Amendments) (Wales) Regulations 2026 before the Senedd.
Subject to the approval of the Senedd, these Regulations will uprate the financial figures in the Council Tax Reduction Schemes and Prescribed Requirements (Wales) Regulations 2013 and the Council Tax Reduction Schemes (Default Scheme) (Wales) Regulations 2013. This ensures the scheme remains in place for the 2026–27 financial year and is uprated to reflect changes in the cost of living, maintaining support for over 256,000 low-income households across Wales.
The Regulations also incorporate recent welfare system changes, including provisions for new neonatal care and pay arrangements, and extend the rule allowing a Universal Credit claim to satisfy the Habitual Residence Test for housing benefit purposes to the Council Tax Reduction Scheme.
Further amendments will ensure displaced persons from Israel, the West Bank, the Gaza Strip, or East Jerusalem are eligible to apply for a council tax reduction.
In addition, the Regulations guarantee that no applicant living in Wales is disadvantaged because they have received a payment under the LGBT Veterans Redress Scheme or the Miscarriage of Justice Compensation Scheme.
I look forward to the debate on the Regulations early next year.