Welsh Ministers have made the Local Government Finance (Wales) Act 2024 (Commencement No. 1) Order 2026, bringing the remaining provisions of section 18 on council tax discounts into force on 1 April 2026. This implements the Act’s discount framework in Wales on the same date the Government has trailed for revised discount regulations. (legislation.gov.uk)
Section 18 restructures the discount regime in Wales by moving from fixed percentage reductions in the Local Government Finance Act 1992 to a regulation‑based system set by the Welsh Ministers. It enables discounts where there is a single resident or where residents are disregarded, allows regulations to specify other eligibility criteria, and permits lesser or nil discounts for prescribed dwelling classes. Consequentially, the former no‑resident discount in section 12 of the 1992 Act is repealed and the interaction with council tax premiums for long‑term empty and periodically occupied dwellings (sections 12A and 12B) is updated. (legislation.gov.uk)
Parts of section 18 have already been in force since Royal Assent. Specifically, section 18(2)(c) and (5) commenced on 17 September 2024 for regulation‑making purposes under section 23(6), with the remainder now appointed for 1 April 2026. (law.gov.wales)
The Welsh Government has consulted on consolidating all discount, disregard and exemption rules into a single instrument-the Council Tax (Discount, Disregards and Exemptions) Regulations 2026-intended to take effect from 1 April 2026. The consultation signals a simplification of scattered provisions into one set of regulations using the new powers in section 18. (gov.wales)
For billing authorities, the change points to operational work during Q1 2026: aligning local determinations with the regulation‑based framework, updating billing software to reflect the revised calculation order where premiums apply, and preparing resident communications for the 2026–27 bills. Under the amended approach, any premium applied to long‑term empty or periodically occupied dwellings is added before subtracting any applicable discount. (legislation.gov.uk)
For households and landlords, current arrangements remain in place until 31 March 2026. From 1 April 2026, eligibility and levels for single‑person and empty‑property relief will be determined by Welsh Ministers’ regulations, with scope for billing authorities to apply lesser or no discounts to classes prescribed in those regulations. (legislation.gov.uk)
The Order was signed by Mark Drakeford MS in his capacity as Cabinet Secretary for Finance and Welsh Language, whose portfolio includes taxation policy and council tax reform. The measure forms part of the wider programme to modernise local government finance in Wales as set out by the Welsh Government. (gov.wales)