Apply the income-related ESA and income-based JSA remunerative work conditions

changelog.d/esa-jsa-remunerative-work.fixed.md

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+- End a reported income-related ESA award when the claimant is engaged in remunerative work or the partner is (Welfare Reform Act 2007 Sch 1 para 6(1)(e), (f)). For the claimant that is any paid work other than exempt work (ESA Regs 2008 reg 41(1)): work with earnings of no more than £20 a week, or of under 16 hours a week with earnings within 16 times the National Minimum Wage rounded up to the next 50p (£195.50 in 2025-26, £203.50 in 2026-27; reg 45(2), (4), (9A)). Earnings (new `esa_exempt_work_earnings`) are pay less PAYE and primary Class 1 on the pay alone and half the pension contributions (reg 96(3)), with statutory sick, maternity and paternity pay, which are not earnings (reg 95(2)(b)), adding neither to the pay nor to the tax and Class 1 taken off it, plus a self-employed profit less reg 99's notional basic-rate tax above the personal and blind person's allowances, main-rate Class 4 on the profit itself (reg 99(4)'s chargeable income, before capital allowances, the trading allowance and loss relief; reg 98(5)), Class 2 until 5 April 2024 (reg 99(3)(a); new `gov.dwp.ESA.income.self_employment_class_2.{deducted, above_lower_profits_threshold}`) and half the personal pension contributions (reg 98(3)), with no loss set against pay (reg 98(11)). The claimant's test is the new `esa_income_claimant_remunerative_work`. For the partner it is 24 hours a week or more (reg 42(1)), except for a carer (reg 43(2)(c)); hours come from the new `esa_income_remunerative_work_hours`.
+- End a reported income-based JSA award when the claimant works 16 hours a week or more (Jobseekers Act 1995 s.1(2)(e); JSA Regs 1996 reg 51(1)(a)) or the partner works 24 or more (s.3(1)(e); reg 51(1)(b)). A member of a joint-claim couple whose partner works 16 to under 24 hours can claim alone (reg 3E(2)(g)), so 24 hours is the limit for the other member of any couple. The JSA regulations have no exception for carers doing unrelated paid work. Hours come from the new `jsa_remunerative_work_hours`.
+- The claimant is a member who reports the award; when the claimant or partner reports one, only they are tested, so a non-dependant's award never changes theirs. The Income Support gate reads the screened awards. A member outside the couple, such as a non-dependent adult, claims in their own right, so `is_on_income_related_esa` and `is_on_income_based_jsa` test their own claim on their own work (the ESA claimant's exempt work limits, or JSA's 16 hours) as well as their report, tariff income and the capital limit: a working one's own report no longer exempts them from a council tax reduction non-dependant deduction, and a non-working one stays on their award when the claimant's own claim fails. New parameters `gov.dwp.ESA.exempt_work.{lower_earnings_limit, hours_limit, higher_earnings_limit}`, `gov.dwp.ESA.income.remunerative_work.partner_hours` and `gov.dwp.JSA.remunerative_work.{claimant_hours, partner_hours}`; the descriptions of `gov.dwp.JSA.hours.single` and `couple` now say what reg 51 sets.

policyengine_uk/parameters/gov/dwp/ESA/exempt_work/higher_earnings_limit.yaml

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+description: Work done for less than the exempt work hours limit, for which a claimant's earnings in any week do not exceed this amount, is exempt work (permitted work) for Employment and Support Allowance. From 11 April 2011 the limit is 16 times the National Minimum Wage, rounded up to the next 50p, and changes when that wage does.
+values:
+  2008-10-27:
+    value: 92
+    reference:
+      - title: Employment and Support Allowance Regulations 2008 reg. 45(4) (as made)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45/2008-10-27
+  2009-10-01:
+    value: 93
+    reference:
+      - title: Social Security (Miscellaneous Amendments) (No. 3) Regulations 2009 (SI 2009/2343) reg. 5(2)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45/2009-10-01
+  # From 11 April 2011 (SI 2011/674 reg. 16(5)): 16 x the National Minimum
+  # Wage, rounded up to the next 50p (reg. 45(9A)). The rate is that in
+  # reg. 11 of the National Minimum Wage Regulations 1999 (ESA Regs reg. 2(1)),
+  # now the National Living Wage; DMG 41190 and Appendix 5 list it.
+  2011-04-11:
+    value: 95 # 16 x £5.93 = £94.88
+    reference:
+      - title: Social Security (Miscellaneous Amendments) Regulations 2011 (SI 2011/674) reg. 16(5)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45/2011-04-11
+      - title: Decision Makers' Guide ch. 41, para. 41190 and Appendix 5
+        href: https://assets.publishing.service.gov.uk/media/689db34d1fedc616bb13399c/dmg-ch-41.pdf
+  2011-10-01:
+    value: 97.5 # 16 x £6.08 = £97.28
+  2012-10-01:
+    value: 99.5 # 16 x £6.19 = £99.04
+  2013-10-01:
+    value: 101 # 16 x £6.31 = £100.96
+  2014-10-01:
+    value: 104 # 16 x £6.50
+  2015-10-01:
+    value: 107.5 # 16 x £6.70 = £107.20
+  2016-04-01:
+    value: 115.5 # 16 x £7.20 = £115.20
+  2017-04-01:
+    value: 120 # 16 x £7.50
+  2018-04-01:
+    value: 125.5 # 16 x £7.83 = £125.28
+  2019-04-01:
+    value: 131.5 # 16 x £8.21 = £131.36
+  2020-04-01:
+    value: 140 # 16 x £8.72 = £139.52
+  2021-04-01:
+    value: 143 # 16 x £8.91 = £142.56
+  2022-04-01:
+    value: 152 # 16 x £9.50
+  2023-04-01:
+    value: 167 # 16 x £10.42 = £166.72
+  2024-04-01:
+    value: 183.5 # 16 x £11.44 = £183.04
+    reference:
+      - title: DWP benefit and pension rates 2025 to 2026 (permitted work higher, 2024/25)
+        href: https://www.gov.uk/government/publications/benefit-and-pension-rates-2025-to-2026/benefit-and-pension-rates-2025-to-2026
+  2025-04-01:
+    value: 195.5 # 16 x £12.21 = £195.36
+    reference:
+      - title: DWP benefit and pension rates 2025 to 2026 (permitted work higher)
+        href: https://www.gov.uk/government/publications/benefit-and-pension-rates-2025-to-2026/benefit-and-pension-rates-2025-to-2026
+  2026-04-01:
+    value: 203.5 # 16 x £12.71 = £203.36
+    reference:
+      - title: DWP benefit and pension rates 2026 to 2027 (permitted work higher)
+        href: https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027
+metadata:
+  unit: currency-GBP
+  period: week
+  label: ESA exempt work higher earnings limit
+  # The National Living Wage is set with reference to earnings, so later
+  # years follow average earnings until the rate is announced, rounded up to
+  # the next 50p as reg. 45(9A) rounds 16 x NMW.
+  uprating:
+    parameter: gov.economic_assumptions.indices.obr.average_earnings
+    rounding:
+      type: upwards
+      interval: 0.5
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 45(4) and (9A)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45

policyengine_uk/parameters/gov/dwp/ESA/exempt_work/hours_limit.yaml

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+description: Work done for less than this many hours a week, with earnings within the higher earnings limit, is exempt work (permitted work) for Employment and Support Allowance.
+values:
+  2008-10-27:
+    value: 16
+    reference:
+      - title: Employment and Support Allowance Regulations 2008 reg. 45(4) (as made)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45/2008-10-27
+metadata:
+  unit: hour
+  period: week
+  label: ESA exempt work hours limit
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 45(4)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45

policyengine_uk/parameters/gov/dwp/ESA/exempt_work/lower_earnings_limit.yaml

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+description: Work for which a claimant's earnings in any week do not exceed this amount is exempt work, so it does not end an Employment and Support Allowance award or count as remunerative work for income-related ESA, whatever the hours.
+values:
+  2008-10-27:
+    value: 20
+    reference:
+      - title: Employment and Support Allowance Regulations 2008 reg. 45(2) (as made)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45/2008-10-27
+metadata:
+  unit: currency-GBP
+  period: week
+  label: ESA exempt work lower earnings limit
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 45(2)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/45
+    - title: Employment and Support Allowance Regulations 2008 regs. 40(2)(f) and 41(1)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/41
+    - title: DWP benefit and pension rates 2026 to 2027 (permitted work lower)
+      href: https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027

policyengine_uk/parameters/gov/dwp/ESA/income/remunerative_work/partner_hours.yaml

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+description: Income-related Employment and Support Allowance treats a claimant's partner as engaged in remunerative work at this many weekly hours of paid work or more.
+values:
+  2008-10-27:
+    value: 24
+    reference:
+      - title: Employment and Support Allowance Regulations 2008 reg. 42(1) (as made)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/42/2008-10-27
+metadata:
+  unit: hour
+  period: week
+  label: Income-related ESA partner remunerative work hours
+  reference:
+    - title: Welfare Reform Act 2007 Sch. 1 para. 6(1)(f)
+      href: https://www.legislation.gov.uk/ukpga/2007/5/schedule/1/paragraph/6
+    - title: Employment and Support Allowance Regulations 2008 reg. 42(1)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/42

policyengine_uk/parameters/gov/dwp/ESA/income/self_employment_class_2/above_lower_profits_threshold.yaml

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+description: Whether the notional Class 2 deduction from a self-employed claimant's profit for income-related ESA applies only above the lower profits threshold, rather than from the small profits threshold.
+values:
+  2008-10-27:
+    value: false
+    reference:
+      - title: Employment and Support Allowance Regulations 2008 reg. 99(3)(a) ("less than ... (small profits threshold)")
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/99/2015-04-06
+  2022-04-06:
+    value: true
+    reference:
+      - title: Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (SI 2022/1329) reg. 5, with effect from 6 April 2022 ("equal to or less than ... (lower profits threshold)")
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/99/2023-04-06
+metadata:
+  unit: bool
+  label: ESA self-employed Class 2 deduction above the lower profits threshold
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 99(3)(a)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/99
+    - title: Social Security Contributions and Benefits Act 1992 s. 11(4)
+      href: https://www.legislation.gov.uk/ukpga/1992/4/section/11

policyengine_uk/parameters/gov/dwp/ESA/income/self_employment_class_2/deducted.yaml

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+description: Whether the notional deductions from a self-employed claimant's profit for income-related ESA include Class 2 National Insurance contributions.
+values:
+  2008-10-27:
+    value: true
+    reference:
+      - title: Employment and Support Allowance Regulations 2008 reg. 99(3)(a) (as made)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/99/2008-10-27
+  2024-04-06:
+    value: false
+    reference:
+      - title: Social Security (Class 2 National Insurance Contributions) (Consequential Amendments and Savings) Regulations 2024 (SI 2024/377) reg. 8(15), omitting reg. 99(3)(a)
+        href: https://www.legislation.gov.uk/uksi/2008/794/regulation/99/2024-04-06
+metadata:
+  unit: bool
+  label: ESA self-employed earnings deduct Class 2
+  reference:
+    - title: Employment and Support Allowance Regulations 2008 reg. 99(3)
+      href: https://www.legislation.gov.uk/uksi/2008/794/regulation/99

policyengine_uk/parameters/gov/dwp/JSA/hours/couple.yaml

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-description: Hours requirement for joint claimants of Jobseeker's Allowance.
+description: Income-based Jobseeker's Allowance treats a claimant's partner as engaged in remunerative work at this many weekly hours of paid work or more. Kept for existing users; the model reads gov.dwp.JSA.remunerative_work.partner_hours.
 values:
   2015-04-01:
     value: 24
     reference:
-      - title: The Jobseeker's Allowance Regulations 1996
-        href: https://www.legislation.gov.uk/uksi/1996/207/made
+      - title: The Jobseeker's Allowance Regulations 1996, regulation 51(1)(b)
+        href: https://www.legislation.gov.uk/uksi/1996/207/regulation/51
 metadata:
   unit: hour
   period: week

policyengine_uk/parameters/gov/dwp/JSA/hours/single.yaml

@@ -1,10 +1,10 @@
-description: Hours requirement for single claimants of Jobseeker's Allowance.
+description: Jobseeker's Allowance treats a claimant as engaged in remunerative work at this many weekly hours of paid work or more. Kept for existing users; the model reads gov.dwp.JSA.remunerative_work.claimant_hours.
 values:
   2015-04-01:
     value: 16
     reference:
-      - title: The Jobseeker's Allowance Regulations 1996, regulation 13
-        href: https://www.legislation.gov.uk/uksi/1996/207/regulation/13
+      - title: The Jobseeker's Allowance Regulations 1996, regulation 51(1)(a)
+        href: https://www.legislation.gov.uk/uksi/1996/207/regulation/51
 metadata:
   unit: hour
   period: week

policyengine_uk/parameters/gov/dwp/JSA/remunerative_work/claimant_hours.yaml

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+description: Jobseeker's Allowance treats a claimant as engaged in remunerative work at this many weekly hours of paid work or more.
+values:
+  1996-10-07:
+    value: 16
+    reference:
+      - title: Jobseeker's Allowance Regulations 1996 reg. 51(1)(a) (as made)
+        href: https://www.legislation.gov.uk/uksi/1996/207/regulation/51/1996-10-07
+metadata:
+  unit: hour
+  period: week
+  label: JSA claimant remunerative work hours
+  reference:
+    - title: Jobseekers Act 1995 s. 1(2)(e)
+      href: https://www.legislation.gov.uk/ukpga/1995/18/section/1
+    - title: Jobseeker's Allowance Regulations 1996 reg. 51(1)(a)
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/51

policyengine_uk/parameters/gov/dwp/JSA/remunerative_work/partner_hours.yaml

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+description: Income-based Jobseeker's Allowance treats a claimant's partner as engaged in remunerative work at this many weekly hours of paid work or more. A member of a joint-claim couple whose partner works fewer hours than this, but 16 or more, may claim alone, so this limit decides whether a couple can have an award.
+values:
+  1996-10-07:
+    value: 24
+    reference:
+      - title: Jobseeker's Allowance Regulations 1996 reg. 51(1)(b) (as made)
+        href: https://www.legislation.gov.uk/uksi/1996/207/regulation/51/1996-10-07
+metadata:
+  unit: hour
+  period: week
+  label: Income-based JSA partner remunerative work hours
+  reference:
+    - title: Jobseekers Act 1995 s. 3(1)(e)
+      href: https://www.legislation.gov.uk/ukpga/1995/18/section/3
+    - title: Jobseeker's Allowance Regulations 1996 reg. 51(1)(b)
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/51
+    - title: Jobseeker's Allowance Regulations 1996 reg. 3E(1) and (2)(g)
+      href: https://www.legislation.gov.uk/uksi/1996/207/regulation/3E