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From 2030-31 every UC LCWRA claimant gets the new-claimant amount; the protected amount stops with the 2026-29 modifier #2282

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Description

@MaxGhenis

What's wrong

From 2030-31 every Universal Credit LCWRA claimant gets the new-claimant amount (elements.disabled.amount), including pre-2026, severe conditions criteria and terminally ill claimants, who are paid the protected amount in law.

universal_credit_july_2025_reform (scenarios/uc_reform.py) sets the health element only for 2026 to 2029 (for year in range(2026, 2030)). After that, uc_LCWRA_element's formula pays elements.disabled.amount to everyone.

Reproducer (main 9475c95a)

A single claimant aged 30 with uc_limited_capability_for_WRA: true, in a situation (no claim-status input, so the protected amount applies):

Tax year Monthly LCWRA element
2029-30 £457.15 (protected amount, s. 4 floor)
2030-31 £235.86 (new-claimant amount, CPI-uprated on main)

With #2284 (UC Act 2025 s. 3 freeze) the 2030-31 figure becomes £221.60, still the new-claimant amount.

#2248 noted this ("After 2029-30, the modifier stops and every claimant falls to elements.disabled.amount") and left it out of scope.

The law

  • The UC Regs 2013 reg. 36 row for pre-2026, severe conditions criteria and terminally ill claimants has no end date. UC Act 2025 s. 2(1)(b) only relabels it.
  • s. 3(1) disapplies SSAA 1992 s. 150(1) and (2) for the LCWRA element (both rows, reg. 27) only in the tax years ending 5 April 2026 to 5 April 2029. The review in 2029-30 governs the April 2030 rates again (s. 150(10)).
  • s. 4 requires increases to the protected amount only for 2026-27 to 2029-30.

Expected

  • From 2030-31 a protected claimant keeps the protected amount, uprated from its 2029-30 level under s. 150. That uprating is discretionary for UC amounts (s. 150(2)(b)); the model's convention is the benefit uprating index.
  • A new claimant keeps elements.disabled.amount.
  • The new-claimant share of claimants also needs a value for 2030 on (post_2025_claimant_share stops at 2029).

gov.dwp.universal_credit.elements.disabled.uprating (added by that fix) is the benefit index held through the s. 3 years. Uprating the 2029-30 protected amount by it from 2030-31 gives the s. 150 path.

Impact

This affects every 2030-31+ projection: UC spending, poverty and household incomes for LCWRA claimants.

From the main run behind #2284's impact table (enhanced_frs_2024_25.h5@1.58.0, main 9475c95a, a full microsimulation): uc_LCWRA_element, summed over every benefit unit with LCWRA, is £32.3bn in 2029-30 and £20.1bn in 2030-31, and universal_credit falls from £87.6bn to £84.5bn. That run does not isolate this bug, since other things change between the two years too; the size of the fix needs its own run.

Activity

  1. MaxGhenis commented on Oct 15, 2026

    @MaxGhenis
    CollaboratorAuthor

    Spec for the fix (UK hub, 2026-10-15). The UC Act 2025 sections, read today at https://www.legislation.gov.uk/ukpga/2025/22, keep both reg. 36 rows past 2029-30:

    • s. 2 inserts the £217.26 row and relabels the protected row, with no end date;
    • s. 3 disapplies SSAA 1992 s. 150 for the LCWRA and LCW elements only in the tax years ending 5 April 2026 to 5 April 2029;
    • s. 4's protected-amount floor covers 2026-27 to 2029-30 only.

    The model's 2030 drop is therefore a bug against the law. A fix that corrects the model to the law merges on the usual gates, with its real-data impact stated in the PR.

    MOCK reproduction on 2.130.1 (one LCWRA claimant aged 35 with no income, monthly element):

    2029 2030 2031 2032
    Existing (protected) £457.15 £235.86 £240.58 £245.39
    New claimant £217.26 £235.86 £240.58 £245.39

    What the PR should do

    • Horizon. Run the overwrite to policyengine_uk.data.economic_assumptions.PROJECTION_END_YEAR (2032 today). Give the years one named source, a constant or a parameter, that other code can read. The Scenario.from_reform(dict).simulation_modifier silently drops statutory changes on a built simulation #2426 guard reads it for its warning.
    • Uprating from 2030-31. Uprate both the protected amount and the new-claimant amount from their 2029-30 levels by Freeze the UC LCWRA element for 2026-27 to 2029-30 (UC Act 2025 s. 3) #2284's benefit index. That is the model's convention for s. 150. Leave 2026–29 exactly as Freeze the UC LCWRA element for 2026-27 to 2029-30 (UC Act 2025 s. 3) #2284 sets them.
    • The new-claimant share from 2030 is an open methodology choice: the source (WPI Economics for Trussell Trust, 2025) stops at 22% in 2029. It is queued for a ruling.
      • Build with 22% held flat as the stated default.
      • Put the shares in a parameter whose comment names the source and the assumption, so the ruling becomes a one-line change.
      • In the PR, show the 2030-31 results at 22% flat and on one rising path: the 2026–29 least-squares linear trend, 3.6 percentage points a year, which gives 24.5% in 2030, 28.1% in 2031 and 31.7% in 2032.
    • Tests:
      • no fall from 2029 to 2030 for an existing or a new claimant;
      • a 2030 reform to either rebalancing amount moves UC;
      • a Hypothesis property: with CPI at zero or above, the protected amount never falls and is never below the new-claimant amount.
    • Impact. Real-data totals by year for 2029–2032, main against the branch, on the certified 1.58.1 data: universal_credit, uc_LCWRA_element, and the counts of protected and new claimants.
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