Apply the Pension Credit earnings disregards (SPC Regs 2002 Sch VI)

changelog.d/pc-earnings-disregard.fixed.md

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+Apply the Pension Credit earnings disregards of SPC Regs 2002 Schedule VI: 20 pounds a week for lone parents, carers and claimants or partners on a listed disability benefit or certified blind, otherwise 5 pounds (single) or 10 pounds (couple), capped at earnings.

policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/amount.yaml

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+description: Weekly earnings disregarded from Pension Credit income for a lone parent, a carer, or a claimant or partner on a listed disability benefit or certified blind. It is the most that can be disregarded however many conditions are met.
+values:
+  2003-10-06: 20
+metadata:
+  unit: currency-GBP
+  period: week
+  label: Pension Credit higher earnings disregard
+  reference:
+    - title: The State Pension Credit Regulations 2002 Sch. VI paras. 1, 3, 4 and 4A
+      href: https://www.legislation.gov.uk/uksi/2002/1792/schedule/VI

policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefit_unit_benefits.yaml

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+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`.
+metadata:
+  label: Pension Credit higher earnings disregard benefit-unit disability benefits
+  unit: list
+  reference:
+    - title: The State Pension Credit Regulations 2002 Sch. VI para. 4(1)(a)(vii)
+      href: https://www.legislation.gov.uk/uksi/2002/1792/schedule/VI/paragraph/4
+    - title: The Employment and Support Allowance (Consequential Provisions) (No. 2) Regulations 2008 reg. 4(10)(a)(ii)
+      href: https://www.legislation.gov.uk/uksi/2008/1554/regulation/4
+values:
+  2003-10-06: []
+  2008-10-27:
+    - esa_income

policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/higher/disability_benefits.yaml

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+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`.
+  `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
+  disability payment (iiia, from 21 October 2024), Scottish adult disability
+  living allowance (iva, from 21 March 2025) and adult disability payment
+  (viiia, from 21 March 2022), which have no separate variables; and the
+  working tax credit disability elements (vi), left out because in the model
+  they follow from DLA or PIP, which are listed, and working tax credit ended
+  in April 2025.
+metadata:
+  label: Pension Credit higher earnings disregard disability benefits
+  unit: list
+  reference:
+    - title: The State Pension Credit Regulations 2002 Sch. VI para. 4(1)(a)
+      href: https://www.legislation.gov.uk/uksi/2002/1792/schedule/VI/paragraph/4
+    - title: The Employment and Support Allowance (Consequential Provisions) (No. 2) Regulations 2008 reg. 4(10)(a)(ii) (ESA, from 27 October 2008)
+      href: https://www.legislation.gov.uk/uksi/2008/1554/regulation/4
+    - title: The Personal Independence Payment (Supplementary Provisions and Consequential Amendments) Regulations 2013 Sch. para. 27(8)(b) (PIP, from 8 April 2013)
+      href: https://www.legislation.gov.uk/uksi/2013/388/schedule/paragraph/27
+    - title: "The Armed Forces and Reserve Forces Compensation Scheme (Consequential Provisions: Subordinate Legislation) Order 2013 Sch. para. 23(8)(b) (AFIP, from 8 April 2013)"
+      href: https://www.legislation.gov.uk/uksi/2013/591/schedule/paragraph/23
+values:
+  2003-10-06:
+    - incapacity_benefit
+    - sda
+    - attendance_allowance
+    - dla
+  2008-10-27:
+    - incapacity_benefit
+    - sda
+    - attendance_allowance
+    - dla
+    - esa_contrib
+  2013-04-08:
+    - incapacity_benefit
+    - sda
+    - attendance_allowance
+    - dla
+    - esa_contrib
+    - pip
+    - armed_forces_independence_payment

policyengine_uk/parameters/gov/dwp/pension_credit/earnings_disregard/standard.yaml

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+description: Weekly earnings disregarded from Pension Credit income where neither the claimant nor a partner qualifies for the higher disregard.
+SINGLE:
+  values:
+    2003-10-06: 5
+  metadata:
+    label: Pension Credit standard earnings disregard (single)
+COUPLE:
+  values:
+    2003-10-06: 10
+  metadata:
+    label: Pension Credit standard earnings disregard (couple)
+metadata:
+  unit: currency-GBP
+  period: week
+  propagate_metadata_to_children: true
+  reference:
+    - title: The State Pension Credit Regulations 2002 Sch. VI para. 5
+      href: https://www.legislation.gov.uk/uksi/2002/1792/schedule/VI/paragraph/5
+    - title: The State Pension Credit Regulations 2002 reg. 17(9)
+      href: https://www.legislation.gov.uk/uksi/2002/1792/regulation/17

policyengine_uk/tests/policy/baseline/gov/dwp/pension_credit/claimant_partner_income_and_carers.yaml

@@ -160,9 +160,13 @@
     is_claimant_or_partner: [true, true]
     # SPCA 2002 s.5: gross = 5,000 + 1,000 + 100 + 2,000 + 500 + 200
     # + 104 = 8,904; deductions = 100 + 50 + 25 + 50% * 300 = 325.
-    pension_credit_income: 8_579
+    # Sch VI para 3 (both carers): 20 pounds a week, capped at net earnings
+    # (claimant 1,000 - 100 tax - 100 half contributions = 800; partner
+    # 500 - 25 NI - 50 tax - 50 = 375; 1,175), so 1,040 is disregarded:
+    # 8,904 - 325 - 1,040.
+    pension_credit_income: 7_539
     # Reg.9: remove the claimant's 100 JSA and partner's 200 ESA.
-    savings_credit_income: 8_279
+    savings_credit_income: 7_239
     # Sch.I para.4 and the 2026 carer addition: 2 * 48.15 * 52 = 5,007.60.
     carer_minimum_guarantee_addition: 5_007.60