diff --git a/changelog.d/legacy-award-reader-switches-2019.fixed.md b/changelog.d/legacy-award-reader-switches-2019.fixed.md new file mode 100644 index 0000000000..43f8ab30b7 --- /dev/null +++ b/changelog.d/legacy-award-reader-switches-2019.fixed.md @@ -0,0 +1 @@ +- Count only the claimant's and partner's own income-related ESA towards the higher Pension Credit earnings disregard (SPC Regs 2002 Sch VI para 4(1)(a)(vii)): an award another member of the benefit unit claims in their own right no longer raises the disregard to £20 a week. diff --git a/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefit_unit_benefits.yaml b/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefit_unit_benefits.yaml index 8e31a28658..7ac86d00e0 100644 --- a/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefit_unit_benefits.yaml +++ b/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefit_unit_benefits.yaml @@ -1,10 +1,11 @@ description: > Benefit-unit awards whose receipt qualifies the benefit unit for the higher Pension Credit earnings disregard (Sch. VI para. 4(1)(a)(vii), employment - and support allowance, from 27 October 2008). The model holds income-related - employment and support allowance on the benefit unit, as the claimant's - award; contributory employment and support allowance is a person-level - benefit in `disability_benefits`. + and support allowance, from 27 October 2008). The claimant's or partner's + income-related employment and support allowance is held on the benefit unit + (`claimant_or_partner_esa_income`); an award another member of the benefit + unit claims in their own right does not count. Contributory employment and + support allowance is a person-level benefit in `disability_benefits`. metadata: label: Pension Credit higher earnings disregard benefit-unit disability benefits unit: list @@ -16,4 +17,4 @@ metadata: values: 2003-10-06: [] 2008-10-27: - - esa_income + - claimant_or_partner_esa_income diff --git a/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefits.yaml b/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefits.yaml index 6aa826b95b..61458b0266 100644 --- a/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefits.yaml +++ b/policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefits.yaml @@ -1,8 +1,8 @@ description: > Person-level benefits whose receipt by the claimant or partner qualifies the benefit unit for the higher Pension Credit earnings disregard (Sch. VI para. - 4(1)(a)). Income-related employment and support allowance, a benefit-unit - award, is in `disability_benefit_unit_benefits`. + 4(1)(a)). The claimant's or partner's income-related employment and support + allowance, a benefit-unit award, is in `disability_benefit_unit_benefits`. `incapacity_benefit` stands for long-term incapacity benefit (para. 4(1)(a)(i)); the model does not separate the short-term rates. Not modelled: the war pensions mobility supplement (v), which has no variable; pension age diff --git a/policyengine_uk/tests/policy/baseline/finance/benefit/family/legacy_award_readers/pension_credit_earnings_disregard.yaml b/policyengine_uk/tests/policy/baseline/finance/benefit/family/legacy_award_readers/pension_credit_earnings_disregard.yaml new file mode 100644 index 0000000000..bca7da11ad --- /dev/null +++ b/policyengine_uk/tests/policy/baseline/finance/benefit/family/legacy_award_readers/pension_credit_earnings_disregard.yaml @@ -0,0 +1,122 @@ +# State Pension Credit Regs 2002 Sch VI para 4(1)(a)(vii): £20 a week of +# earnings is disregarded if "the claimant or, if he has a partner, his +# partner" is in receipt of employment and support allowance; otherwise £5 a +# week for a single claimant and £10 for a couple (para 5), capped at the +# earnings. "other" is a member who is neither the claimant, the partner nor a +# child or young person they are responsible for, so their income-related ESA +# is their own claim and does not raise the claimant's disregard; nor does +# their contributory ESA, a person-level award read only for the claimant and +# partner. The claimant's £3,000 of earnings is below the income tax personal +# allowance, and a claimant over state pension age pays no National Insurance, +# so the net earnings under reg. 17(9) and (10) are the £3,000 itself. + +- name: Another member's income-related ESA leaves a single pensioner with the £5 earnings disregard + period: 2026 + absolute_error_margin: 0.01 + input: + people: + claimant: + age: 70 + is_claimant_or_partner: true + employment_income: 3_000 + other: + age: 30 + is_claimant_or_partner: false + current_education: NOT_IN_EDUCATION + esa_income_reported: 5_000 + benunits: + benunit: + members: [claimant, other] + households: + household: + members: [claimant, other] + output: + esa_income: 5_000 + claimant_or_partner_esa_income: 0 + ni_class_1_employee: [0, 0] + pension_credit_employment_income_tax: 0 + pension_credit_earnings: 3_000 + # 5 x 52 + pension_credit_earnings_disregard: 260 + +- name: Another member's income-related ESA leaves a couple with the £10 earnings disregard + period: 2026 + absolute_error_margin: 0.01 + input: + people: + claimant: + age: 70 + is_claimant_or_partner: true + employment_income: 3_000 + partner: + age: 68 + is_claimant_or_partner: true + other: + age: 30 + is_claimant_or_partner: false + current_education: NOT_IN_EDUCATION + esa_income_reported: 5_000 + benunits: + benunit: + members: [claimant, partner, other] + households: + household: + members: [claimant, partner, other] + output: + claimant_or_partner_esa_income: 0 + pension_credit_earnings: 3_000 + # 10 x 52 + pension_credit_earnings_disregard: 520 + +- name: The partner's income-related ESA gives the couple the £20 earnings disregard + # A mixed-age couple: the partner is under state pension age. + period: 2026 + absolute_error_margin: 0.01 + input: + people: + claimant: + age: 70 + is_claimant_or_partner: true + employment_income: 3_000 + partner: + age: 60 + is_claimant_or_partner: true + esa_income_reported: 5_000 + benunits: + benunit: + members: [claimant, partner] + households: + household: + members: [claimant, partner] + output: + claimant_or_partner_esa_income: 5_000 + pension_credit_earnings: 3_000 + # 20 x 52 + pension_credit_earnings_disregard: 1_040 + +- name: Another member's contributory ESA leaves a single pensioner with the £5 earnings disregard + period: 2026 + absolute_error_margin: 0.01 + input: + people: + claimant: + age: 70 + is_claimant_or_partner: true + employment_income: 3_000 + other: + age: 30 + is_claimant_or_partner: false + current_education: NOT_IN_EDUCATION + esa_contrib_reported: 5_000 + benunits: + benunit: + members: [claimant, other] + households: + household: + members: [claimant, other] + output: + esa_contrib: [0, 5_000] + claimant_or_partner_esa_income: 0 + pension_credit_earnings: 3_000 + # 5 x 52 + pension_credit_earnings_disregard: 260 diff --git a/policyengine_uk/tests/test_legacy_award_readers_properties.py b/policyengine_uk/tests/test_legacy_award_readers_properties.py index 7850e3a79a..455f4cfe35 100644 --- a/policyengine_uk/tests/test_legacy_award_readers_properties.py +++ b/policyengine_uk/tests/test_legacy_award_readers_properties.py @@ -27,6 +27,8 @@ SI 2019/37 arts 2(3) and 4, through SI 2006/214 reg 5. - The extended childcare parent and partner conditions: SI 2022/1134 regs 11A(1)(e), 14(4)(b) and 15(4). +- The higher Pension Credit earnings disregard for a claimant or partner on + employment and support allowance: SPC Regs 2002 Sch VI para 4(1)(a)(vii). A member of the benefit unit who is neither the claimant, the partner nor a child or young person they are responsible for (for example a non-dependent @@ -121,6 +123,7 @@ "income_support_eligible", "housing_benefit_pension_age_regulations_apply", "has_mixed_age_couple_pension_credit_saving", + "pension_credit_earnings_disregard", ] MEMBER_READERS = [ "is_scp_eligible", diff --git a/policyengine_uk/tests/test_pension_credit_earnings_disregard_properties.py b/policyengine_uk/tests/test_pension_credit_earnings_disregard_properties.py index cad0a87ef3..8b8696e236 100644 --- a/policyengine_uk/tests/test_pension_credit_earnings_disregard_properties.py +++ b/policyengine_uk/tests/test_pension_credit_earnings_disregard_properties.py @@ -318,9 +318,9 @@ def lists(date): return set(p.disability_benefits), set(p.disability_benefit_unit_benefits) person, unit = lists("2008-10-26") - assert "esa_contrib" not in person and "esa_income" not in unit + assert "esa_contrib" not in person and "claimant_or_partner_esa_income" not in unit person, unit = lists("2008-10-27") - assert "esa_contrib" in person and "esa_income" in unit + assert "esa_contrib" in person and "claimant_or_partner_esa_income" in unit person, _ = lists("2013-04-07") assert "pip" not in person and "armed_forces_independence_payment" not in person person, _ = lists("2013-04-08")