PolicyEngine-UK 2.131.1__tar.gz → 2.131.2__tar.gz

{policyengine_uk-2.131.1 → policyengine_uk-2.131.2}/CHANGELOG.md

@@ -1,3 +1,10 @@
+## [2.131.2] - 2026-10-14
+
+### Fixed
+
+- - Fixed HBAI household income after housing costs to deduct ground rent and housing service charges, so equivalised AHC income and poverty measures include these costs.
+
+
 ## [2.131.1] - 2026-10-14
 
 ### Fixed

{policyengine_uk-2.131.1 → policyengine_uk-2.131.2}/PKG-INFO

@@ -1,6 +1,6 @@
 Metadata-Version: 2.5
 Name: policyengine-uk
-Version: 2.131.1
+Version: 2.131.2
 Summary: PolicyEngine tax and benefit system for the UK.
 Project-URL: Homepage, https://github.com/PolicyEngine/policyengine-uk
 Project-URL: Repository, https://github.com/PolicyEngine/policyengine-uk

policyengine_uk-2.131.2/policyengine_uk/tests/policy/baseline/household/income/hbai_housing_costs.yaml

@@ -0,0 +1,71 @@
+# HBAI FYE 2025's housing-cost definition includes ground rent and service
+# charges: https://www.gov.uk/government/statistics/households-below-average-income-for-financial-years-ending-1995-to-2025/households-below-average-income-background-information-and-methodology-report-fye-2025#glossary
+# Input BHC income directly so these housing-cost cases remain independent
+# of how income before housing costs is calculated or floored.
+
+- name: Renters deduct service charges in addition to rent and water
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    age: 40
+    tenure_type: RENT_PRIVATELY
+    hbai_household_net_income: 30_000
+    rent: 12_000
+    water_and_sewerage_charges: 400
+    mortgage_interest_repayment: 0
+    structural_insurance_payments: 0
+    housing_service_charges: 1_200
+    household_equivalisation_ahc: 0.58
+  output:
+    # 30,000 - 12,000 - 400 - 1,200.
+    hbai_household_net_income_ahc: 16_400
+    # 16,400 / 0.58.
+    equiv_hbai_household_net_income_ahc: 28_275.862069
+
+- name: Owner-occupiers deduct ground rent with mortgage interest and insurance
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    age: 40
+    tenure_type: OWNED_WITH_MORTGAGE
+    hbai_household_net_income: 30_000
+    rent: 0
+    water_and_sewerage_charges: 400
+    mortgage_interest_repayment: 3_000
+    structural_insurance_payments: 200
+    housing_service_charges: 600
+  output:
+    # 30,000 - 400 - 3,000 - 200 - 600.
+    hbai_household_net_income_ahc: 25_800
+
+- name: Without ground rent or service charges the other deductions are unchanged
+  period: 2024
+  absolute_error_margin: 0.01
+  input:
+    age: 40
+    tenure_type: RENT_PRIVATELY
+    hbai_household_net_income: 30_000
+    rent: 12_000
+    water_and_sewerage_charges: 400
+    mortgage_interest_repayment: 0
+    structural_insurance_payments: 0
+    housing_service_charges: 0
+  output:
+    # 30,000 - 12,000 - 400.
+    hbai_household_net_income_ahc: 17_600
+
+- name: Housing costs above BHC income leave negative AHC income
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    age: 40
+    tenure_type: RENT_PRIVATELY
+    hbai_household_net_income: 5_000
+    rent: 6_000
+    water_and_sewerage_charges: 400
+    mortgage_interest_repayment: 0
+    structural_insurance_payments: 0
+    housing_service_charges: 1_200
+  output:
+    # 5,000 - 6,000 - 400 - 1,200, without an AHC zero floor.
+    hbai_household_net_income_ahc: -2_600

policyengine_uk-2.131.2/policyengine_uk/tests/test_hbai_housing_costs_properties.py

@@ -0,0 +1,156 @@
+"""HBAI AHC deducts every housing cost once, including service charges.
+
+BHC is supplied directly to isolate the housing-cost contract from the
+calculation and zero floor of income before housing costs. Each vector
+population contains a household with zero BHC and positive service charges.
+"""
+
+import numpy as np
+import pytest
+from hypothesis import HealthCheck, given, settings
+from hypothesis import strategies as st
+
+from policyengine_uk import Simulation
+
+pytestmark = pytest.mark.usefixtures("cloned_uk_tax_benefit_system")
+
+PROPERTY_SETTINGS = settings(
+    max_examples=16,
+    deadline=None,
+    derandomize=True,
+    suppress_health_check=[HealthCheck.too_slow],
+)
+
+# Keep this independent of the production variable's subtracts list: importing
+# that list would allow a missing deduction to disappear from the oracle too.
+HOUSING_COSTS = (
+    "rent",
+    "water_and_sewerage_charges",
+    "mortgage_interest_repayment",
+    "structural_insurance_payments",
+    "housing_service_charges",
+)
+
+
+def money(maximum):
+    return st.integers(0, maximum * 100).map(lambda pennies: pennies / 100)
+
+
+households = st.fixed_dictionaries(
+    {
+        "hbai_household_net_income": money(120_000),
+        "rent": money(30_000),
+        "water_and_sewerage_charges": money(2_000),
+        "mortgage_interest_repayment": money(20_000),
+        "structural_insurance_payments": money(3_000),
+        "housing_service_charges": money(10_000),
+        "household_equivalisation_ahc": st.sampled_from([0.58, 1.0, 1.2, 1.42]),
+    }
+)
+ZERO_BHC_HOUSEHOLD = {
+    "hbai_household_net_income": 0,
+    "rent": 6_000,
+    "water_and_sewerage_charges": 400,
+    "mortgage_interest_repayment": 0,
+    "structural_insurance_payments": 0,
+    "housing_service_charges": 1_200,
+    "household_equivalisation_ahc": 0.58,
+}
+populations = st.lists(households, min_size=4, max_size=4).map(
+    lambda generated: [ZERO_BHC_HOUSEHOLD, *generated]
+)
+
+
+@pytest.fixture(scope="module")
+def simulation(cloned_uk_tax_benefit_system):
+    """Reuse one fixed vector population across examples in each worker."""
+    people, benunits, homes = {}, {}, {}
+    for index in range(5):
+        person = f"person_{index}"
+        people[person] = {"age": {year: 40 for year in (2024, 2025, 2026)}}
+        benunits[f"benunit_{index}"] = {"members": [person]}
+        # reset_calculations preserves variables registered as inputs when
+        # the situation is built, including BHC, rent and equivalisation.
+        homes[f"household_{index}"] = {
+            "members": [person],
+            **{
+                name: {
+                    year: 1 if name == "household_equivalisation_ahc" else 0
+                    for year in (2024, 2025, 2026)
+                }
+                for name in (
+                    "hbai_household_net_income",
+                    *HOUSING_COSTS,
+                    "household_equivalisation_ahc",
+                )
+            },
+        }
+    return Simulation(
+        situation={"people": people, "benunits": benunits, "households": homes}
+    )
+
+
+def supplied_amounts(population, name, extra=0):
+    # Variable inputs are stored as float32. Sum them independently in float64
+    # so the oracle allows only the model's float32 arithmetic rounding.
+    return np.asarray(
+        [household[name] + extra for household in population], dtype=np.float32
+    ).astype(np.float64)
+
+
+def set_inputs(simulation, population, year, extra_service_charges=0):
+    for name in (
+        "hbai_household_net_income",
+        *HOUSING_COSTS,
+        "household_equivalisation_ahc",
+    ):
+        extra = extra_service_charges if name == "housing_service_charges" else 0
+        simulation.set_input(name, year, supplied_amounts(population, name, extra))
+    simulation.reset_calculations()
+
+
+@pytest.mark.parametrize("year", [2024, 2025, 2026])
+@PROPERTY_SETTINGS
+@given(population=populations)
+def test_ahc_never_exceeds_bhc_less_housing_costs(simulation, population, year):
+    set_inputs(simulation, population, year)
+    bhc = supplied_amounts(population, "hbai_household_net_income")
+    housing_costs = sum(supplied_amounts(population, name) for name in HOUSING_COSTS)
+    expected = bhc - housing_costs
+    actual = np.asarray(simulation.calculate("hbai_household_net_income_ahc", year))
+    tolerance = np.maximum(
+        0.01, 4 * np.finfo(np.float32).eps * (np.abs(bhc) + housing_costs)
+    )
+
+    assert np.all(actual <= expected + tolerance)
+    assert np.all(np.abs(actual - expected) <= tolerance)
+    assert actual[0] == -7_600
+
+    equivalisation = supplied_amounts(population, "household_equivalisation_ahc")
+    equivalised = np.asarray(
+        simulation.calculate("equiv_hbai_household_net_income_ahc", year)
+    )
+    np.testing.assert_allclose(
+        equivalised, expected / equivalisation, rtol=1e-6, atol=0.03
+    )
+
+
+@pytest.mark.parametrize("year", [2024, 2025, 2026])
+@PROPERTY_SETTINGS
+@given(population=populations, extra=money(10_000))
+def test_extra_service_charges_reduce_ahc_by_the_same_amount(
+    simulation, population, extra, year
+):
+    set_inputs(simulation, population, year)
+    before_ahc = np.asarray(
+        simulation.calculate("hbai_household_net_income_ahc", year)
+    ).copy()
+    set_inputs(simulation, population, year, extra)
+    after_ahc = np.asarray(simulation.calculate("hbai_household_net_income_ahc", year))
+    extra_input = supplied_amounts(population, "housing_service_charges", extra)
+    extra_input -= supplied_amounts(population, "housing_service_charges")
+
+    assert np.all(after_ahc <= before_ahc)
+    np.testing.assert_allclose(
+        before_ahc - after_ahc, extra_input, rtol=1e-6, atol=0.03
+    )

{policyengine_uk-2.131.1 → policyengine_uk-2.131.2}/policyengine_uk/variables/household/income/hbai_household_net_income_ahc.py

@@ -7,8 +7,15 @@ class hbai_household_net_income_ahc(Variable):
     value_type = float
     entity = Household
     label = "Household net income, after housing costs"
+    documentation = (
+        "HBAI household net income less rent, water and sewerage charges, "
+        "mortgage interest, structural insurance, ground rent and property "
+        "service charges. Housing costs can exceed income, leaving negative "
+        "income after housing costs."
+    )
     definition_period = YEAR
     unit = GBP
+    reference = "https://www.gov.uk/government/statistics/households-below-average-income-for-financial-years-ending-1995-to-2025/households-below-average-income-background-information-and-methodology-report-fye-2025#housing-costs"
 
     adds = ["hbai_household_net_income"]
     subtracts = [
@@ -16,6 +23,7 @@ class hbai_household_net_income_ahc(Variable):
         "water_and_sewerage_charges",
         "mortgage_interest_repayment",
         "structural_insurance_payments",
+        "housing_service_charges",
     ]
 
 

policyengine_uk-2.131.2/policyengine_uk/variables/input/consumption/property/housing_service_charges.py

@@ -0,0 +1,16 @@
+from policyengine_uk.model_api import *
+
+
+class housing_service_charges(Variable):
+    value_type = float
+    entity = Household
+    label = "housing service charges"
+    documentation = (
+        "Annual ground rent and property service charges, including regular "
+        "maintenance, site rent, factoring and other regular property charges. "
+        "Supply amounts additional to rent, water and sewerage charges, "
+        "mortgage interest and structural insurance, counting each cost once."
+    )
+    definition_period = YEAR
+    unit = GBP
+    uprating = "gov.economic_assumptions.indices.obr.lagged_average_earnings"

{policyengine_uk-2.131.1 → policyengine_uk-2.131.2}/pyproject.toml

@@ -1,6 +1,6 @@
 [project] 
 name = "policyengine-uk"
-version = "2.131.1"
+version = "2.131.2"
 description = "PolicyEngine tax and benefit system for the UK."
 readme = "README.md"
 authors = [

policyengine_uk-2.131.1/policyengine_uk/variables/input/consumption/property/housing_service_charges.py

@@ -1,11 +0,0 @@
-from policyengine_uk.model_api import *
-
-
-class housing_service_charges(Variable):
-    value_type = float
-    entity = Household
-    label = "housing service charges"
-    documentation = "Total amount spent on housing service charges"
-    definition_period = YEAR
-    unit = GBP
-    uprating = "gov.economic_assumptions.indices.obr.lagged_average_earnings"