Read only the claimant's and partner's ESA in the Pension Credit earnings disregard

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.

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

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

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

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",

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")