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Move working-age legacy-benefit reporters onto UC at Move to UC claim rates (stranded after HB, tax credit, IS and JSA closure) #492

Description

@MaxGhenis

Problem

would_claim_uc is drawn once per benefit unit in create_frs (policyengine_uk_data/datasets/frs.py, the take-up block around lines 1487 and 1540-1544). The draw uses assign_takeup_with_reported_anchors: benefit units with a UC reporter are forced True, and everyone else is filled so that 55% of all benefit units are True (parameters/take_up/universal_credit.yaml, which cites no source). The UC anchor holds when the draw is made, but the stage-2 QRF later rewrites universal_credit_reported on SPI-synthetic rows and never re-anchors it (#491). Legacy-benefit reporters get no special treatment: HB, tax credits, income-related ESA, IS and income-based JSA.

Every working-age legacy benefit has now closed in PolicyEngine UK:

Income-related ESA ended on the same dates, by SI 2025/1148 art 3A (inserted by SI 2026/409) and SR 2025/176 art 3A. PE-UK does not model that yet.

A legacy reporter whose draw came out False therefore loses the legacy benefit and gets no UC. On the Enhanced FRS 2024-25 (uk-data 1.56.16, sha256 e433e532…), in FY 2026-27, 175.2k working-age benefit units report a legacy means-tested benefit and have would_claim_uc False. 47.9k of them also report UC, on SPI-synthetic rows where the anchor broke. Of the 175.2k:

  • 81.3k report HB, and 28.0k of them were still paid HB through the continuing-award route (£0.184bn);
  • 62.7k report tax credits.

Real runs (clean main at 1c5b4d04, current weights) give the effect of switching would_claim_uc to True for these groups:

  • all 175.2k: UC +£0.683bn, HB −£0.184bn;
  • the HB reporters alone: UC +£0.470bn, HB −£0.184bn.

The real world looks very different from the draw. DWP's Move to UC statistics to the end of March 2026 (published 12 May 2026) report 1,822,374 households sent a migration notice, of whom 87% claimed UC. 814,703 households were awarded transitional protection, 53% of those eligible. The claim rate varies widely by legacy cohort (Stat-Xplore, dataset "Households invited to Move to Universal Credit", tables MtUC Households 3 and 6, retrieved 2026-09-30):

Legacy cohort (GB) Notices Claimed UC Claim rate Transitional protection, share of claimants
HB only 41,300 30,900 74.8% 22.3%
HB and income-related ESA (incl. with CTC) 532,271 522,112 98.1% 63.4%
HB and any other legacy benefit 750,093 730,696 97.4% 58.5%
Income-related ESA only 335,190 321,075 95.8% 31.6%
IS only 19,067 17,719 92.9% 29.1%
JSA only 6,199 5,867 94.6% 24.1%
Tax credits only (CTC, WTC, both) 650,635 454,700 69.9% 58.1%
All 1,822,966 1,580,761 86.7% 51.6%

Rows overlap: the third row includes the second. "ESA" is Stat-Xplore's label. Migration notices go only to claimants of an "existing benefit", which covers income-related ESA but not contributory ESA. The protection share is of all claimants.

Northern Ireland's Department for Communities table 28 (UC statistics, May 2026) shows the same pattern: ESA & HB 98%, HB only 76%, all cohorts 88%.

In the dataset, 82% of working-age HB reporters who do not also report UC have would_claim_uc True (weighted). The share is 79% for the largest group, HB plus income-related ESA (182k units, 633 records), whose observed claim rate is 98%. Among all working-age HB reporters the share is 72%, pulled down by SPI-synthetic rows with the broken anchor. On FRS-original rows the draw treats HB reporters like any other non-reporter (unweighted, about 48%); the weighted shares come from calibration.

Proposal

Order. Land PE-UK's income-related ESA abolition, and make ESA(IR) exclusive with UC, first. Today PE-UK pays 137k units both ESA(IR) (£1.6bn) and UC. Moving more ESA(IR) reporters onto UC before that fix would widen the double payment.

Option (a), data only.

  • Add parameters/take_up/uc_managed_migration.yaml, with claim rates by legacy cohort from the table above and its source.
  • In the take-up block, anchor working-age legacy reporters who do not report UC to would_claim_uc True with their cohort's probability.
  • Draw from a separate seeded generator, so that the seed=100 sequence for every other flag is unchanged.
  • Property tests: every UC reporter is True, the cohort shares land within sampling error of the rates, and flags outside the legacy cohorts are identical to before.

Option (b), data plus model. This is the alternative if 2024-25 and 2025-26 legacy receipt must stay intact until each benefit closes.

  • Add a PE-UK input would_claim_uc_at_legacy_closure, drawn here at the cohort rates.
  • Add a PE-UK claims_universal_credit variable for the five would_claim_uc consumers: would_claim_uc | (legacy award closed in the period & the new input).
  • Guard it with require_variable and raise the PE-UK floor.

Either option moves the calibrated weights (calibration runs at FY 2025-26 against OBR HB and UC targets), so the effect has to be measured from a CI build, not scaled from the counterfactual above. It also bears on #452 (UC caseload about 40% below administrative counts).

Transitional protection is not modelled in PE-UK, so option (a) or (b) would pay migrants plain UC. See the linked PE-UK issue.

Activity

  1. MaxGhenis commented on Oct 3, 2026

    @MaxGhenis
    ContributorAuthor

    PR: #534 (draft). It is the data half of option (b); the model half is PolicyEngine/policyengine-uk#2119 (issue PolicyEngine/policyengine-uk#2118).

    Why (b): policyengine-uk copies would_claim_uc into every year. The Housing Benefit continuing award and Child Tax Credit both require it to be false, while Income Support, income-based JSA, income-related ESA and Working Tax Credit do not read it. So option (a) would move 2024-25 Housing Benefit and Child Tax Credit receipt onto Universal Credit, and pay the other legacy benefits on top. (b) leaves would_claim_uc alone. It adds would_claim_uc_at_legacy_closure, which the model reads only once DWP has moved the family off its legacy benefits.

    Claim rates come from Stat-Xplore table MtUC Households 3: all 19 legacy combinations DWP reports, retrieved 2026-10-03. Its totals match the issue (1,822,966 notices, 1,580,761 claimed).

    Income-related ESA's end date is still not modelled (PolicyEngine/policyengine-uk#1914 has no PR). #2119 ends income-related ESA for every family it moves, so #534 cannot widen the ESA and Universal Credit overlap.

    #534 is in the d833 uk-data batch and is not merged on its own. It needs #2119 released first.

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