Let pension-age families make new Housing Benefit claims

changelog.d/hb-pension-age-new-claims.fixed.md

@@ -0,0 +1 @@
+Let families in which every adult is over State Pension age make new Housing Benefit claims, as SI 2014/1230 reg 6A(4) allows. They no longer need a reported claim, and `would_claim_uc` no longer blocks them because Universal Credit is not available to them. Household calculations previously paid pension-age renters no Housing Benefit, and pension-age families in the Enhanced FRS who report Housing Benefit lost it whenever they drew `would_claim_uc`. Working-age and mixed-age families keep the existing continuing-award rule.

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

@@ -19,14 +19,14 @@
    "source": [
     "## Eligibility\n",
     "\n",
-    "`housing_benefit_eligible` requires all of:\n",
+    "`housing_benefit_eligible` requires the benunit to be either in **social housing** or eligible for the **Local Housing Allowance** rate (broadly, private renters), with assessable capital at or below the working-age (or pension-age) capital limit, and to reach Housing Benefit by one of two routes:\n",
     "\n",
-    "- the benunit was **already claiming** Housing Benefit in the previous period (proxied by a positive `housing_benefit_reported`) — this gates out new working-age claimants per the UC migration policy,\n",
-    "- the benunit is either in **social housing** or eligible for the **Local Housing Allowance** rate (broadly, private renters),\n",
-    "- the benunit is **not claiming Universal Credit**, and\n",
-    "- assessable capital is at or below the working-age (or pension-age) capital limit.\n",
+    "- **Pension age**: every adult in the benunit has reached the qualifying age for State Pension Credit (State Pension age). New Housing Benefit claims are open to them ([SI 2014/1230 reg. 6A(4)](https://www.legislation.gov.uk/uksi/2014/1230/regulation/6A)), and Universal Credit is not, so neither a previous claim nor `would_claim_uc` matters.\n",
+    "- **Continuing award**: any other benunit was **already claiming** Housing Benefit (proxied by a positive `housing_benefit_reported`) and is **not claiming Universal Credit**. Working-age and mixed-age families cannot make new claims; they claim the Universal Credit housing element instead. For mixed-age couples the reported award stands in for the saving for couples who were entitled to Housing Benefit or Pension Credit on 14 May 2019 ([SI 2019/37 art. 4](https://www.legislation.gov.uk/uksi/2019/37/article/4)).\n",
     "\n",
-    "The take-up step is handled separately by the input variable `would_claim_housing_benefit`, populated stochastically when the dataset is built so that aggregates match published DWP caseloads."
+    "The pension-age test counts the same benunit members as Universal Credit's working-age test, and the continuing-award route requires not claiming Universal Credit, so no benunit receives both. Working-age awards outside specified or temporary accommodation ended on 1 July 2026 in Great Britain ([SI 2025/1148 art. 7](https://www.legislation.gov.uk/uksi/2025/1148/article/7)); PolicyEngine does not yet model that. Claims for specified or temporary accommodation, which remain open at any age, are not modelled.\n",
+    "\n",
+    "Take-up is handled by `would_claim_housing_benefit`, which is true for benunits that report Housing Benefit and, when no reported benefits are supplied (as in household calculations), for everyone. In the Enhanced FRS take-up therefore follows reported claims."
    ]
   },
   {
@@ -43,7 +43,7 @@
     "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",
     "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` so the post-cap variable matches reported caseload after take-up."
+    "The take-up gate (`would_claim_housing_benefit`) is applied inside `housing_benefit_pre_benefit_cap`."
    ]
   },
   {

policyengine_uk/parameters/gov/dwp/housing_benefit/takeup.yaml

@@ -1,5 +1,7 @@
-description: Share of eligible Housing Benefit recipients that participate. By definition,
-  this is 100%, because only current claimants are eligible (no new claims).
+description: Share of eligible Housing Benefit recipients that participate. Not used by
+  the model, which takes Housing Benefit take-up from reported claims in survey data and
+  assumes full take-up in household calculations. Pension-age families can make new
+  claims; working-age families only continue existing awards.
 metadata:
   economy: false
   label: Housing benefit take-up rate

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

@@ -0,0 +1,274 @@
+# Who may claim Housing Benefit: SI 2014/1230 reg 6A (NI: SR 2016/226 reg 4A).
+# Pension-age units (claimant and any partner at State Pension Credit
+# qualifying age) may make new claims (reg 6A(4)); others keep only a
+# continuing award (reported HB and not claiming UC) in this model.
+
+- name: Single pensioner council tenant makes a new Housing Benefit claim
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 10_000
+    benunits:
+      benunit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+  output:
+    guarantee_credit: 2_376
+    housing_benefit_applicable_income: 0
+    housing_benefit_eligible: true
+    housing_benefit: 6_240
+    universal_credit: 0
+
+- name: Pensioner couple renting privately is capped at the Local Housing Allowance
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older:
+        age: 70
+        state_pension_reported: 2_500
+      younger:
+        age: 68
+        state_pension_reported: 2_500
+    benunits:
+      benunit:
+        members: [older, younger]
+        BRMA_LHA_rate: 8_000
+    households:
+      household:
+        members: [older, younger]
+        rent: 9_000
+        tenure_type: RENT_PRIVATELY
+  output:
+    housing_benefit_eligible: true
+    housing_benefit_applicable_income: 0
+    housing_benefit: 8_000
+    universal_credit: 0
+
+- name: New pension-age claim is tapered at 65% above the applicable amount
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 80
+    benunits:
+      benunit:
+        members: [person]
+        BRMA_LHA_rate: 12_000
+        housing_benefit_applicable_income: 20_000
+    households:
+      household:
+        members: [person]
+        rent: 9_000
+        tenure_type: RENT_PRIVATELY
+  output:
+    housing_benefit_eligible: true
+    housing_benefit_applicable_amount: 13_312
+    housing_benefit: 4_652.80
+
+- name: Pensioner with capital over 16,000 and no Guarantee Credit is not eligible
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 15_000
+    benunits:
+      benunit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+        savings: 20_000
+  output:
+    guarantee_credit: 0
+    housing_benefit_assessable_capital: 20_000
+    housing_benefit_eligible: false
+    housing_benefit: 0
+
+- name: Pensioner on Guarantee Credit has capital disregarded
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 10_000
+    benunits:
+      benunit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+        savings: 20_000
+  output:
+    guarantee_credit: 1_336
+    housing_benefit_assessable_capital: 0
+    housing_benefit_eligible: true
+    housing_benefit: 6_240
+
+- name: Would-claim-UC flag does not block a pension-age claim
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 10_000
+    benunits:
+      benunit:
+        members: [person]
+        would_claim_uc: true
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+  output:
+    housing_benefit_eligible: true
+    housing_benefit: 6_240
+    universal_credit: 0
+
+- name: Survey-style pensioner reporting HB with would_claim_uc true is paid
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 10_000
+        housing_benefit_reported: 1
+    benunits:
+      benunit:
+        members: [person]
+        would_claim_uc: true
+        claims_all_entitled_benefits: false
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+  output:
+    would_claim_housing_benefit: true
+    housing_benefit_eligible: true
+    housing_benefit: 6_240
+
+- name: Mixed-age couple without a continuing award cannot claim HB
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older:
+        age: 70
+        state_pension_reported: 10_000
+      younger:
+        age: 60
+    benunits:
+      benunit:
+        members: [older, younger]
+    households:
+      household:
+        members: [older, younger]
+        rent: 6_240
+        tenure_type: RENT_PRIVATELY
+  output:
+    housing_benefit_eligible: false
+    housing_benefit: 0
+    is_uc_eligible: true
+
+- name: Mixed-age couple with a continuing award keeps HB and gets no UC
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older:
+        age: 70
+        state_pension_reported: 10_000
+        housing_benefit_reported: 1
+      younger:
+        age: 60
+    benunits:
+      benunit:
+        members: [older, younger]
+        would_claim_uc: false
+    households:
+      household:
+        members: [older, younger]
+        rent: 6_240
+        tenure_type: RENT_PRIVATELY
+  output:
+    housing_benefit_eligible: true
+    universal_credit: 0
+
+- name: Working-age council tenant cannot make a new HB claim
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 40
+    benunits:
+      benunit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+  output:
+    housing_benefit_eligible: false
+    housing_benefit: 0
+
+- name: Pension-age owner-occupier gets no HB
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 10_000
+    benunits:
+      benunit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: OWNED_OUTRIGHT
+  output:
+    housing_benefit_eligible: false
+    housing_benefit: 0
+
+- name: Northern Ireland pensioner council tenant makes a new claim
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      person:
+        age: 70
+        state_pension_reported: 10_000
+    benunits:
+      benunit:
+        members: [person]
+    households:
+      household:
+        members: [person]
+        rent: 6_240
+        tenure_type: RENT_FROM_COUNCIL
+        region: NORTHERN_IRELAND
+  output:
+    housing_benefit_eligible: true
+    housing_benefit: 6_240

policyengine_uk/tests/policy/baseline/finance/benefit/family/uc_legacy_mutual_exclusion.yaml

@@ -1,8 +1,12 @@
 # Regression tests for issue #201: UC and legacy benefit `claims_*` consistency.
 #
-# `housing_benefit_eligible` explicitly includes `& ~claiming_uc` so a benunit
-# claiming Universal Credit cannot also be eligible for Housing Benefit. These
-# tests pin that contract so a future refactor can't quietly break it.
+# A working-age benunit keeps Housing Benefit only while it continues an
+# existing award and does not claim Universal Credit, so a benunit claiming
+# Universal Credit cannot also be eligible for Housing Benefit. Wholly
+# pension-age benunits can make new Housing Benefit claims whatever
+# `would_claim_uc` says, because Universal Credit is not available to them
+# (see housing_benefit_pension_age_claims.yaml). These tests pin the
+# working-age contract so a future refactor can't quietly break it.
 
 - name: HB eligibility excludes benunits claiming Universal Credit
   period: 2025