Add the Warm Home Discount in England and Wales

changelog.d/warm-home-discount.added.md

@@ -0,0 +1 @@
+- Added the Warm Home Discount in England and Wales (`warm_home_discount`) from winter 2025-26 to the end of the scheme period on 31 March 2031, with parameters for the rebate amount and the qualifying means-tested benefits, and its rebate counted as miscellaneous income in HBAI household net income.

policyengine_uk/parameters/gov/ofgem/warm_home_discount/amount.yaml

@@ -0,0 +1,18 @@
+description: Rebate that a scheme electricity supplier gives each eligible customer in England and Wales under the Warm Home Discount, once per scheme year.
+values:
+  2022-04-01:
+    value: 150
+    metadata:
+      reference:
+        - title: The Warm Home Discount (England and Wales) Regulations 2022, reg. 3 ("prescribed rebate")
+          href: https://www.legislation.gov.uk/uksi/2022/772/regulation/3/made
+  2026-04-01:
+    value: 150
+    metadata:
+      reference:
+        - title: The Warm Home Discount (England and Wales) Regulations 2026, reg. 3 ("prescribed rebate")
+          href: https://www.legislation.gov.uk/uksi/2026/389/regulation/3/made
+metadata:
+  unit: currency-GBP
+  period: year
+  label: Warm Home Discount amount

policyengine_uk/parameters/gov/ofgem/warm_home_discount/index.yaml

@@ -0,0 +1,3 @@
+description: The Warm Home Discount in England and Wales, a rebate that electricity suppliers in the scheme pay to eligible customers each winter. Suppliers fund it, and Ofgem administers it. Scotland runs a separate scheme with its own criteria, which the model doesn't calculate, and the scheme doesn't operate in Northern Ireland.
+metadata:
+  label: Warm Home Discount

policyengine_uk/parameters/gov/ofgem/warm_home_discount/qualifying_benefits.yaml

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+description: Means-tested benefits whose receipt by a member of the household qualifies it for the Warm Home Discount in England and Wales. The Secretary of State sets them in the eligibility statement for each scheme year. In 2025-26, Core Group 1 covered Pension Credit Guarantee Credit and Core Group 2 the other benefits listed, including Pension Credit Savings Credit, so any Pension Credit qualifies. From 2026-27 a single core group covers both elements of Pension Credit. Before 2025-26, the low-income group also had to pass a high-cost-to-heat test on property data, which the model doesn't encode, so the list is empty and the model doesn't calculate the rebate for those years. The Warm Home Discount (England and Wales) Regulations 2026 set the scheme period to end on 31 March 2031, after scheme year 20 (2030-31), and an extension needs further regulations, so the list is empty from 2031-32.
+values:
+  2011-04-01: []
+  2025-04-01:
+    value:
+      - pension_credit
+      - universal_credit
+      - housing_benefit
+      - esa_income
+      - jsa_income
+      - income_support
+    metadata:
+      reference:
+        - title: "Warm Home Discount: eligibility statement, England and Wales, 2025 to 2026"
+          href: https://www.gov.uk/government/publications/warm-home-discount-eligibility-statement-england-and-wales-2025-to-2026-scheme-year/warm-home-discount-eligibility-statement-england-and-wales-2025-to-2026
+  2026-04-01:
+    value:
+      - pension_credit
+      - universal_credit
+      - housing_benefit
+      - esa_income
+    metadata:
+      reference:
+        - title: "Warm Home Discount: eligibility statement, England and Wales, 2026 to 2027"
+          href: https://www.gov.uk/government/publications/warm-home-discount-eligibility-statement-england-and-wales-2026-to-2027-scheme-year/warm-home-discount-eligibility-statement-england-and-wales-2026-to-2027
+  2031-04-01:
+    value: []
+    metadata:
+      reference:
+        - title: The Warm Home Discount (England and Wales) Regulations 2026, reg. 4(2)(b) (scheme period ends 31 March 2031)
+          href: https://www.legislation.gov.uk/uksi/2026/389/regulation/4/made
+        - title: The Warm Home Discount (England and Wales) Regulations 2026, reg. 3 ("scheme year" 16 to 20)
+          href: https://www.legislation.gov.uk/uksi/2026/389/regulation/3/made
+metadata:
+  unit: list
+  period: year
+  label: Warm Home Discount qualifying benefits
+  reference:
+    - title: The Warm Home Discount (England and Wales) Regulations 2026, reg. 10 (eligibility statement)
+      href: https://www.legislation.gov.uk/uksi/2026/389/regulation/10/made

policyengine_uk/programs.yaml

@@ -553,6 +553,18 @@ programs:
     verified_end_year: 2024
     notes: Temporary program, ended 31 March 2024
 
+  - id: warm_home_discount
+    name: Warm Home Discount
+    full_name: Warm Home Discount (England and Wales)
+    category: Benefits
+    agency: Ofgem
+    status: partial
+    coverage: England and Wales
+    variable: warm_home_discount
+    parameter_prefix: gov.ofgem.warm_home_discount
+    verified_start_year: 2025
+    notes: Supplier-funded bill rebate, outside household_net_income and gov_spending. Benefit-receipt rule from winter 2025-26; Scottish scheme not modelled
+
   # --- Scotland programs ---
   - id: scottish_income_tax
     name: Scottish income tax

policyengine_uk/tests/policy/baseline/finance/benefit/family/universal_credit/income/uc_statutory_pay.yaml

@@ -250,5 +250,8 @@
     # 400 of pay raises its income by 180.
     household_benefits: 5_278.80
     household_net_income: 5_278.80
-    hbai_household_net_income: 5_278.80
+    # HBAI also counts the £150 Warm Home Discount the Universal Credit
+    # award brings in England, as miscellaneous income.
+    warm_home_discount: 150
+    hbai_household_net_income: 5_428.80
     gov_spending: 5_278.80