Disregard the whole income and capital of Housing Benefit claimants on IS, income-based JSA or income-related ESA

changelog.d/hb-passport-income-related-benefits.fixed.md

@@ -0,0 +1 @@
+- Disregard the whole income and capital of a Housing Benefit claimant in receipt of Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance, as SI 2006/213 Schedule 5 paragraph 4 and Schedule 6 paragraph 5 (Northern Ireland: SR 2006/405 Schedule 6 paragraph 4 and Schedule 7 paragraph 5) require, so they get maximum Housing Benefit. These benefits were counted as income and tapered. The passport has no age condition, so it covers mixed-age couples whose younger member is on one of these benefits (SI 2006/213 regulation 5(1)(b)). Adds `in_receipt_of_income_support_jsa_ib_or_esa_ir`.

docs/book/programs/gov/dwp/housing-benefit.ipynb

@@ -41,6 +41,7 @@
     "1. **Eligible rent** (`benunit_rent`): the contracted rent for the property, capped at the Local Housing Allowance rate where the LHA applies.\n",
     "2. **Applicable amount** (`housing_benefit_applicable_amount`): a personal allowance derived from the benunit's composition (single, couple, lone parent) and age, plus any disability/carer premiums. This is the \"minimum income\" the household needs before HB tapers begin.\n",
     "3. **Means test** (`housing_benefit_entitlement`): the benunit's `housing_benefit_applicable_income` in excess of the applicable amount is tapered against the eligible rent at the published `withdrawal_rate` (currently 0.65). The result is then reduced by `housing_benefit_non_dep_deductions` for any non-dependant adults living in the household.\n",
+    "   If the benunit is in receipt of Income Support, income-based Jobseeker's Allowance or income-related Employment and Support Allowance (`in_receipt_of_income_support_jsa_ib_or_esa_ir`: a positive amount of any of them), the whole of its income and capital is disregarded ([SI 2006/213 Sch. 5 para. 4](https://www.legislation.gov.uk/uksi/2006/213/schedule/5/paragraph/4) and [Sch. 6 para. 5](https://www.legislation.gov.uk/uksi/2006/213/schedule/6/paragraph/5); Northern Ireland: [SR 2006/405 Sch. 6 para. 4](https://www.legislation.gov.uk/nisr/2006/405/schedule/6/paragraph/4) and [Sch. 7 para. 5](https://www.legislation.gov.uk/nisr/2006/405/schedule/7/paragraph/5)). `housing_benefit_applicable_income` and `housing_benefit_assessable_capital` are then zero, so the award is the eligible rent less non-dependant deductions. This applies at any age: a mixed-age couple whose younger member is on one of these benefits is assessed under the working-age regulations ([SI 2006/213 reg. 5(1)(b)](https://www.legislation.gov.uk/uksi/2006/213/regulation/5)). The universal credit limb of those paragraphs is not modelled, because no benunit receives both Housing Benefit and Universal Credit.\n",
     "4. **Benefit cap** (`housing_benefit`): the post-means-test award is finally reduced by `benefit_cap_reduction` if the household's total benefit income exceeds the cap and no cap exemption applies.\n",
     "\n",
     "The take-up gate (`would_claim_housing_benefit`) is applied inside `housing_benefit_pre_benefit_cap`."

policyengine_uk/tests/policy/baseline/finance/benefit/family/housing_benefit/applicable_income/housing_benefit_applicable_income.yaml

@@ -51,14 +51,14 @@
   input:
     # Benefits
     child_benefit: 1_000
-    income_support: 2_250
+    income_support: 0
     jsa_income: 0
     esa_income: 0
     # Income
     employment_income: 0
     self_employment_income: 0
     property_income: 0
-    private_pension_income: 0
+    private_pension_income: 2_250
     # Tax
     income_tax: 0
     national_insurance: 0
@@ -75,14 +75,14 @@
   input:
     # Benefits
     child_benefit: 1_000
-    income_support: 2_250
+    income_support: 0
     jsa_income: 0
     esa_income: 0
     # Income
     employment_income: 0
     self_employment_income: 0
     property_income: 1_000
-    private_pension_income: 0
+    private_pension_income: 2_250
     # Tax
     income_tax: 0
     national_insurance: 0
@@ -99,14 +99,14 @@
   input:
     # Benefits
     child_benefit: 1_000
-    income_support: 2_250
+    income_support: 0
     jsa_income: 0
     esa_income: 0
     # Income
     employment_income: 0
     self_employment_income: 0
     property_income: 1_000
-    private_pension_income: 0
+    private_pension_income: 2_250
     # Tax
     income_tax: 0
     national_insurance: 0

policyengine_uk/tests/policy/baseline/finance/benefit/family/housing_benefit/housing_benefit_income_related_benefit_passport.yaml

@@ -0,0 +1,228 @@
+# SI 2006/213 Sch 5 para 4 and Sch 6 para 5 (NI: SR 2006/405 Sch 6 para 4 and
+# Sch 7 para 5): where a claimant is on income support, an income-based
+# jobseeker's allowance or an income-related employment and support allowance,
+# the whole of the claimant's income and capital is disregarded, so Housing
+# Benefit is the maximum: the eligible rent, less any non-dependant deductions
+# (reg 70). Expected values are hand-computed from the regulations: council
+# tenancies (no LHA cap), no non-dependants. Working-age awards use 2025-26
+# (or housing_benefit_entitlement for 2026-27), before working-age awards were
+# abolished from 1 July 2026 (SI 2025/1148 art. 7).
+
+- name: Lone parent on Income Support has income and capital disregarded and gets maximum Housing Benefit
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        employment_income: 3_000
+        housing_benefit_reported: 1
+      child:
+        age: 3
+    benunits:
+      benunit:
+        members: [parent, child]
+        would_claim_uc: false
+        income_support: 5_000
+    households:
+      household:
+        members: [parent, child]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 6_240
+        savings: 12_000
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+    # Sch 6 para 5: the £12,000 is disregarded, so there is no tariff income
+    # (it would otherwise be £1 a week for each £250 over £6,000: £24 x 52).
+    housing_benefit_assessable_capital: 0
+    housing_benefit_tariff_income: 0
+    # Sch 5 para 4: earnings, Income Support and Child Benefit all disregarded.
+    housing_benefit_applicable_income: 0
+    housing_benefit_eligible: true
+    housing_benefit_entitlement: 6_240
+    housing_benefit: 6_240
+
+- name: Single claimant on income-based JSA has income and capital disregarded
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant:
+        age: 40
+        employment_income: 1_000
+        housing_benefit_reported: 1
+    benunits:
+      benunit:
+        members: [claimant]
+        would_claim_uc: false
+        jsa_income: 3_500
+    households:
+      household:
+        members: [claimant]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 5_200
+        savings: 12_000
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+    housing_benefit_assessable_capital: 0
+    housing_benefit_tariff_income: 0
+    housing_benefit_applicable_income: 0
+    housing_benefit_entitlement: 5_200
+    housing_benefit: 5_200
+
+- name: Contribution-based JSA is not a passport, so income and capital are taken into account
+  # The same claimant as above, with contribution-based JSA in place of
+  # income-based JSA. The disregard and applicable amount are set so the
+  # taper can be computed by hand: applicable income = 3,500 + 1,000 +
+  # tariff income 1,248 (ceil((12,000 - 6,000) / 250) = 24, x £1 x 52) - 260
+  # = 5,488; entitlement = 5,200 - 0.65 x (5,488 - 4,000) = 4,232.80.
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant:
+        age: 40
+        employment_income: 1_000
+        jsa_contrib: 3_500
+        housing_benefit_reported: 1
+    benunits:
+      benunit:
+        members: [claimant]
+        would_claim_uc: false
+        jsa_income: 0
+        housing_benefit_applicable_income_disregard: 260
+        housing_benefit_applicable_amount: 4_000
+    households:
+      household:
+        members: [claimant]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 5_200
+        savings: 12_000
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: false
+    housing_benefit_assessable_capital: 12_000
+    housing_benefit_tariff_income: 1_248
+    housing_benefit_applicable_income: 5_488
+    housing_benefit_entitlement: 4_232.80
+
+- name: Income-based JSA claimant above the Housing Benefit capital limit stays eligible because the whole capital is disregarded
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant:
+        age: 40
+        housing_benefit_reported: 1
+    benunits:
+      benunit:
+        members: [claimant]
+        would_claim_uc: false
+        jsa_income: 3_500
+    households:
+      household:
+        members: [claimant]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 5_200
+        savings: 20_000
+  output:
+    housing_benefit_assessable_capital: 0
+    housing_benefit_eligible: true
+    housing_benefit_entitlement: 5_200
+
+- name: Couple where the partner is on income-based JSA is passported, earnings included
+  # Sch 5 para 5 (a joint-claim couple) and the benefit-unit reading of
+  # para 4: the model holds the award for the benefit unit. The claimant's
+  # £12,000 of earnings would otherwise take the couple's income above their
+  # applicable amount.
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    people:
+      claimant:
+        age: 32
+        employment_income: 12_000
+        housing_benefit_reported: 1
+      partner:
+        age: 30
+    benunits:
+      benunit:
+        members: [claimant, partner]
+        would_claim_uc: false
+        jsa_income: 4_000
+    households:
+      household:
+        members: [claimant, partner]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 6_240
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+    housing_benefit_applicable_income: 0
+    housing_benefit_entitlement: 6_240
+
+- name: Mixed-age couple whose younger member is on income-related ESA is passported
+  # SI 2006/213 reg 5(1)(b) applies the working-age regulations to a claimant
+  # over State Pension Credit age whose partner is on income-related ESA (and
+  # SI 2006/214 reg 5(2) disapplies the pension-age ones), so Sch 5 para 4 and
+  # Sch 6 para 5 disregard the State Pension and the savings. Guarantee Credit
+  # is set to nil to show the result does not come from the Pension Credit
+  # passport. Members over State Pension age keep the award all year. The
+  # private pension would otherwise take the couple's income above their
+  # applicable amount.
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older:
+        age: 70
+        state_pension_reported: 12_000
+        private_pension_income: 15_000
+        housing_benefit_reported: 1
+      younger:
+        age: 60
+    benunits:
+      benunit:
+        members: [older, younger]
+        would_claim_uc: false
+        guarantee_credit: 0
+        esa_income: 6_000
+    households:
+      household:
+        members: [older, younger]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 6_240
+        savings: 10_000
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+    housing_benefit_assessable_capital: 0
+    housing_benefit_applicable_income: 0
+    housing_benefit_entitlement: 6_240
+    housing_benefit: 6_240
+
+- name: Mixed-age couple with contributory ESA only is not passported
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older:
+        age: 70
+        state_pension_reported: 12_000
+        private_pension_income: 15_000
+        housing_benefit_reported: 1
+      younger:
+        age: 60
+        esa_contrib: 6_000
+    benunits:
+      benunit:
+        members: [older, younger]
+        would_claim_uc: false
+        guarantee_credit: 0
+        esa_income: 0
+    households:
+      household:
+        members: [older, younger]
+        tenure_type: RENT_FROM_COUNCIL
+        rent: 6_240
+        savings: 10_000
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: false
+    housing_benefit_assessable_capital: 10_000

policyengine_uk/tests/policy/baseline/gov/dwp/in_receipt_of_income_support_jsa_ib_or_esa_ir.yaml

@@ -0,0 +1,92 @@
+# Receipt of Income Support, income-based JSA or income-related ESA: a
+# positive amount of any of them, held for the benefit unit.
+
+- name: No income-related benefit
+  period: 2025
+  input:
+    income_support: 0
+    jsa_income: 0
+    esa_income: 0
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: false
+
+- name: Income Support alone
+  period: 2025
+  input:
+    income_support: 0.01
+    jsa_income: 0
+    esa_income: 0
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+
+- name: Income-based JSA alone
+  period: 2025
+  input:
+    income_support: 0
+    jsa_income: 1_000
+    esa_income: 0
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+
+- name: Income-related ESA alone
+  period: 2025
+  input:
+    income_support: 0
+    jsa_income: 0
+    esa_income: 1_000
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true
+
+- name: Contributory JSA and ESA are not receipt
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 40
+        jsa_contrib: 2_000
+        esa_contrib: 2_000
+    benunits:
+      benunit:
+        members: [claimant]
+        income_support: 0
+        jsa_income: 0
+        esa_income: 0
+  output:
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: false
+
+- name: A reported income-based JSA award screened out by the capital test is not receipt
+  # jsa_income is nil above the £16,000 capital limit, so nothing is paid.
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 40
+        jsa_income_reported: 3_000
+    benunits:
+      benunit:
+        members: [claimant]
+    households:
+      household:
+        members: [claimant]
+        savings: 20_000
+  output:
+    jsa_income: 0
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: false
+
+- name: A reported income-based JSA award within the capital limit is receipt
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 40
+        jsa_income_reported: 3_000
+    benunits:
+      benunit:
+        members: [claimant]
+    households:
+      household:
+        members: [claimant]
+        savings: 1_000
+  output:
+    jsa_income: 3_000
+    in_receipt_of_income_support_jsa_ib_or_esa_ir: true