Apply the £10,000 accommodation threshold to legacy tariff income

changelog.d/1758.fixed.md

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+Apply the £10,000 capital tariff threshold to Income Support, income-based JSA and income-related ESA claimants who live permanently in prescribed accommodation. Callers mark them with the new legacy_prescribed_accommodation_capital_exception input, which defaults to false.

policyengine_uk/parameters/gov/dwp/ESA/income/capital/residential_threshold.yaml

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+description: Capital tariff threshold for income-related Employment and Support Allowance claimants who live permanently in prescribed accommodation.
+metadata:
+  label: Income-related ESA prescribed accommodation capital tariff threshold
+  unit: currency-GBP
+  period: year
+values:
+  2008-10-27:
+    value: 10000
+    reference:
+      - title: The Employment and Support Allowance Regulations 2008, regulation 118(2)-(4)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/118
+      - title: The Employment and Support Allowance Regulations (Northern Ireland) 2008, regulation 118(2)-(4)
+        href: https://www.legislation.gov.uk/nisr/2008/280/regulation/118

policyengine_uk/parameters/gov/dwp/JSA/income/capital/residential_threshold.yaml

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+description: Capital tariff threshold for income-based Jobseeker's Allowance claimants who live permanently in prescribed accommodation.
+metadata:
+  label: Income-based JSA prescribed accommodation capital tariff threshold
+  unit: currency-GBP
+  period: year
+values:
+  1996-10-07:
+    value: 10000
+    reference:
+      - title: The Jobseeker's Allowance Regulations 1996, regulation 116(1A)-(1C)
+        href: https://www.legislation.gov.uk/uksi/1996/207/regulation/116
+      - title: The Jobseeker's Allowance (Amendment) Regulations 1996, regulation 12(b)
+        href: https://www.legislation.gov.uk/uksi/1996/1516/regulation/12
+      - title: The Jobseeker's Allowance (Amendment) Regulations (Northern Ireland) 1996, regulation 10
+        href: https://www.legislation.gov.uk/nisr/1996/356/regulation/10/made

policyengine_uk/parameters/gov/dwp/income_support/means_test/capital/residential_threshold.yaml

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+description: Capital tariff threshold for Income Support claimants who live permanently in prescribed accommodation.
+metadata:
+  label: Income Support prescribed accommodation capital tariff threshold
+  unit: currency-GBP
+  period: year
+values:
+  1996-04-08:
+    value: 10000
+    reference:
+      - title: The Income Support (General) Regulations 1987, regulation 53(1A)-(1C)
+        href: https://www.legislation.gov.uk/uksi/1987/1967/regulation/53
+      - title: The Income-related Benefits Schemes (Miscellaneous Amendments) Regulations 1996, regulation 12(1)(b)
+        href: https://www.legislation.gov.uk/uksi/1996/462/regulation/12
+      - title: The Income-Related Benefits (Miscellaneous Amendments) Regulations (Northern Ireland) 1996, regulation 11(1)(b)
+        href: https://www.legislation.gov.uk/nisr/1996/93/regulation/11/made

policyengine_uk/tests/policy/baseline/finance/benefit/family/esa_income/esa_income_residential_capital.yaml

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+# Income-related ESA tariff income from capital: ESA Regs 2008 reg 118 (NI: SR
+# 2008/280 reg 118). DWP and the Department for Communities count capital
+# above the lower threshold as £1 a week for each complete £250 (reg
+# 118(1)-(2)) and £1 for any part of £250 left over (reg 118(5)), over 52
+# weeks. They use a lower threshold of £6,000 (reg 118(1)), or £10,000 where
+# the claimant lives permanently in prescribed accommodation (reg 118(2)-(4)),
+# and stop counting capital at £16,000. The model pays no income-related ESA
+# above the £16,000 capital limit (reg 110). At £16,001 the model continues
+# the arithmetic, which the regulation does not prescribe, and the award case
+# checks for a nil award at the configured limit.
+
+- name: Income-related ESA ordinary capital threshold and partial steps
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    esa_income_assessable_capital: [6000, 6001, 10000, 10001, 10251, 16000, 16001]
+    legacy_prescribed_accommodation_capital_exception: [false, false, false, false, false, false, false]
+  output:
+    # Excess over £6,000: 0, 1, 4,000, 4,001, 4,251, 10,000, 10,001.
+    # Steps of £250 or part: 0, 1, 16, 17, 18, 40, 41; each £1 x 52.
+    esa_income_tariff_income: [0, 52, 832, 884, 936, 2080, 2132]
+
+- name: Income-related ESA prescribed accommodation capital threshold and partial steps
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    esa_income_assessable_capital: [6000, 6001, 10000, 10001, 10251, 16000, 16001]
+    legacy_prescribed_accommodation_capital_exception: [true, true, true, true, true, true, true]
+  output:
+    # Excess over £10,000: 0, 0, 0, 1, 251, 6,000, 6,001.
+    # Steps of £250 or part: 0, 0, 0, 1, 2, 24, 25; each £1 x 52.
+    esa_income_tariff_income: [0, 0, 0, 52, 104, 1248, 1300]
+
+- name: Omitted prescribed accommodation status retains the ordinary ESA threshold
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    esa_income_assessable_capital: 10001
+  output:
+    legacy_prescribed_accommodation_capital_exception: false
+    esa_income_tariff_income: 884
+
+- name: Housing Benefit's residential exception does not set the ESA threshold
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    esa_income_assessable_capital: 10001
+    housing_benefit_assessable_capital: 10001
+    housing_benefit_residential_capital_exception: true
+    housing_benefit_pension_age_regulations_apply: false
+  output:
+    legacy_prescribed_accommodation_capital_exception: false
+    # HB Regs 2006 reg 52(3): £10,001 exceeds £10,000 by £1, one step.
+    housing_benefit_tariff_income: 52
+    # ESA Regs 2008 reg 118(1): £4,001 over £6,000, 17 steps.
+    esa_income_tariff_income: 884
+
+- name: The ESA prescribed accommodation exception does not set Housing Benefit's threshold
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    esa_income_assessable_capital: 10001
+    legacy_prescribed_accommodation_capital_exception: true
+    housing_benefit_assessable_capital: 10001
+    housing_benefit_pension_age_regulations_apply: false
+  output:
+    housing_benefit_residential_capital_exception: false
+    # HB Regs 2006 reg 52(1): £4,001 over £6,000, 17 steps.
+    housing_benefit_tariff_income: 884
+    # ESA Regs 2008 reg 118(2): £1 over £10,000, one step.
+    esa_income_tariff_income: 52
+
+- name: Income-related ESA in prescribed accommodation is paid at the upper capital limit
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant:
+        age: 40
+        esa_income_reported: 3_000
+    benunits:
+      benunit:
+        members: claimant
+        would_claim_uc: false
+        esa_income_assessable_capital: 16_000
+        legacy_prescribed_accommodation_capital_exception: true
+    households:
+      household:
+        members: claimant
+  output:
+    esa_income_eligible: true
+    # Reg 118(2): £6,000 over £10,000 is 24 steps, £24 x 52 = £1,248.
+    esa_income_tariff_income: 1_248
+    # £3,000 reported award less £1,248 tariff income.
+    esa_income: 1_752
+
+- name: Income-related ESA outside prescribed accommodation is paid at the upper capital limit
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant:
+        age: 40
+        esa_income_reported: 3_000
+    benunits:
+      benunit:
+        members: claimant
+        would_claim_uc: false
+        esa_income_assessable_capital: 16_000
+        legacy_prescribed_accommodation_capital_exception: false
+    households:
+      household:
+        members: claimant
+  output:
+    esa_income_eligible: true
+    # Reg 118(1): £10,000 over £6,000 is 40 steps, £40 x 52 = £2,080.
+    esa_income_tariff_income: 2_080
+    # £3,000 reported award less £2,080 tariff income.
+    esa_income: 920
+
+- name: Income-related ESA is not paid above the capital limit with or without the exception
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant_1:
+        age: 40
+        esa_income_reported: 3_000
+      claimant_2:
+        age: 40
+        esa_income_reported: 3_000
+    benunits:
+      benunit_1:
+        members: claimant_1
+        would_claim_uc: false
+        esa_income_assessable_capital: 16_001
+        legacy_prescribed_accommodation_capital_exception: true
+      benunit_2:
+        members: claimant_2
+        would_claim_uc: false
+        esa_income_assessable_capital: 16_001
+        legacy_prescribed_accommodation_capital_exception: false
+    households:
+      household_1:
+        members: claimant_1
+      household_2:
+        members: claimant_2
+  output:
+    # Reg 110: no award where capital exceeds £16,000.
+    esa_income_eligible: [false, false]
+    esa_income: [0, 0]
+
+- name: Income-related ESA keeps a fractional ordinary threshold when the exception input is omitted
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    gov.dwp.ESA.income.capital.tariff_income.threshold: 6_000.02
+    esa_income_assessable_capital: [6_000.02, 6_000.03, 6_250.02]
+  output:
+    # Reg 118(1) with the threshold reformed to £6,000.02: excess 0, 0.01
+    # and 250; steps of £250 or part 0, 1 and 1; each £1 x 52.
+    esa_income_tariff_income: [0, 52, 52]
+
+- name: Income-related ESA keeps a fractional ordinary threshold when the exception input is false
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    gov.dwp.ESA.income.capital.tariff_income.threshold: 6_000.02
+    esa_income_assessable_capital: [6_000.02, 6_000.03, 6_250.02]
+    legacy_prescribed_accommodation_capital_exception: [false, false, false]
+  output:
+    # Reg 118(1): excess over £6,000.02 of 0, 0.01 and 250; 0, 1 and 1 steps.
+    esa_income_tariff_income: [0, 52, 52]
+
+- name: Income-related ESA applies a fractional prescribed accommodation threshold
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    gov.dwp.ESA.income.capital.residential_threshold: 10_000.07
+    esa_income_assessable_capital: [10_000.07, 10_000.08, 10_250.07]
+    legacy_prescribed_accommodation_capital_exception: [true, true, true]
+  output:
+    # Reg 118(2)-(4) with the threshold reformed to £10,000.07: excess 0,
+    # 0.01 and 250; 0, 1 and 1 steps; each £1 x 52.
+    esa_income_tariff_income: [0, 52, 52]