Current status: Answered by Michael Matheson on 21 September 2022
To ask the Scottish Government what its position is on reports that charities that normally qualify for water charge rebates, but were involved in dispersing grants in relation to the COVID-19 pandemic, have had their turnover artificially inflated to above £300,000, meaning they no longer qualify, and whether it will undertake to provide an exemption in such cases.
The water and sewerage charges exemption scheme is open to charities which have an income of less than £300,000. Eligibility is assessed based on gross income information as obtained from the Office of the Scottish Charity Regulator (OSCR) and there are no disregards in respect of capital grants or restricted income. This position was agreed in light of a public consultation and reflects the fact that in many cases restricted income/capital grants are not clearly set out in annual accounts.
In recognition that restricted income such as grants or asset disposals would elevate, temporarily, a charity’s income, the income threshold for eligibility was increased from £65,000 to £200,000 for full exemption and £300,000 for partial exemption. Setting a higher income threshold ensures that the administrative costs of the scheme are kept to a minimum as there is no need for individual assessments to be made in relation to the nature of the restricted income. Furthermore, as charities are required to submit annual applications, this means that if an organisation does not qualify in one financial year, it will not be prevented from applying in future years should it meet the criteria of the scheme.