policyengine-uk 2.40.1__py3-none-any.whl → 2.65.6__py3-none-any.whl

policyengine_uk/variables/gov/dft/rail_subsidy_spending.py

@@ -3,8 +3,23 @@ from policyengine_uk.model_api import *
 
 class rail_subsidy_spending(Variable):
     label = "rail subsidy spending"
-    documentation = "Total spending on rail subsidies for this household."
+    documentation = (
+        "Total spending on rail subsidies for this household. "
+        "Computed as rail_usage × fare_index, allowing reforms to "
+        "modify fare prices independently of usage quantity."
+    )
     entity = Household
     definition_period = YEAR
     value_type = float
     unit = GBP
+
+    def formula(household, period, parameters):
+        # Get rail usage (quantity at base year prices)
+        # This should be provided by policyengine-uk-data
+        rail_usage = household("rail_usage", period)
+
+        # Get the fare index for the current period
+        fare_index = parameters(period).gov.dft.rail.fare_index
+
+        # Spending = quantity × price
+        return rail_usage * fare_index

policyengine_uk/variables/gov/dft/rail_usage.py

@@ -0,0 +1,16 @@
+from policyengine_uk.model_api import *
+
+
+class rail_usage(Variable):
+    label = "rail usage"
+    documentation = (
+        "Rail usage quantity in base year (2020) price terms. "
+        "Should be provided by policyengine-uk-data, derived from "
+        "rail_subsidy_spending / fare_index at survey year. "
+        "Uprated by rail ridership growth trends (~1.9% annually)."
+    )
+    entity = Household
+    definition_period = YEAR
+    value_type = float
+    unit = GBP
+    uprating = "gov.dft.rail.ridership_index"

policyengine_uk/variables/gov/dwp/BRMA_LHA_rate.py

@@ -51,13 +51,18 @@ class BRMA_LHA_rate(Variable):
             ["brma", "lha_category"]
         ).weekly_rent.quantile(percentile)
 
+        # Convert MultiIndex Series to DataFrame for merge
+        lha_rates_df = lha_rates.reset_index()
+        lha_rates_df.columns = ["brma", "lha_category", "weekly_rent"]
+
         lha_lookup_table = pd.DataFrame(
             {
                 "brma": brma,
                 "lha_category": category,
             }
         )
-        lha_lookup_table["weekly_rent"] = lha_lookup_table.apply(
-            lambda x: lha_rates.loc[x.brma, x.lha_category], axis=1
+        # Use merge instead of row-by-row apply for vectorised lookup
+        lha_lookup_table = lha_lookup_table.merge(
+            lha_rates_df, on=["brma", "lha_category"], how="left"
         )
         return lha_lookup_table.weekly_rent.values * 52

policyengine_uk/variables/gov/dwp/LHA_category.py

@@ -36,11 +36,13 @@ class LHA_category(Variable):
             household.max(person("age", period))
         )
         has_children = benunit.any(person("is_child", period))
-        # Households with only one adult, if under 35, can only claim shared if without children:
+        # Households with only one adult, if under age threshold, can only
+        # claim shared if without children:
         # https://www.legislation.gov.uk/uksi/2013/376/schedule/4/paragraph/28
+        p = parameters(period).gov.dwp.LHA
         can_only_claim_shared = (
             (num_adults_in_hh == 1)
-            & (eldest_adult_age_in_hh < 35)
+            & (eldest_adult_age_in_hh < p.shared_accommodation_age_threshold)
             & ~has_children
         )
         return select(

policyengine_uk/variables/gov/dwp/additional_state_pension.py

@@ -12,8 +12,10 @@ class additional_state_pension(Variable):
         simulation = person.simulation
         if simulation.dataset is None:
             return 0
-
-        data_year = simulation.dataset.time_period
+        try:
+            data_year = min(simulation.dataset.years)
+        except:
+            data_year = period.start.year
         reported = person("state_pension_reported", data_year) / WEEKS_IN_YEAR
         type = person("state_pension_type", data_year)
         maximum_basic_sp = parameters(

policyengine_uk/variables/gov/dwp/basic_state_pension.py

@@ -10,20 +10,38 @@ class basic_state_pension(Variable):
 
     def formula(person, period, parameters):
         simulation = person.simulation
-        if simulation.dataset is None:
-            return 0
+        has_dataset = simulation.dataset is not None
+
+        # Determine the data year: from dataset if available, otherwise current
+        if has_dataset:
+            try:
+                data_year = min(simulation.dataset.years)
+            except:
+                data_year = period.start.year
+        else:
+            data_year = period.start.year
 
-        data_year = simulation.dataset.time_period
         reported = person("state_pension_reported", data_year) / WEEKS_IN_YEAR
-        type = person("state_pension_type", period)
+        pension_type = person("state_pension_type", period)
         maximum_basic_sp = parameters(
             data_year
         ).gov.dwp.state_pension.basic_state_pension.amount
+
+        # For BASIC pension type, cap at the maximum; otherwise return 0
         amount_in_data_year = where(
-            type == type.possible_values.BASIC,
+            pension_type == pension_type.possible_values.BASIC,
             min_(reported, maximum_basic_sp),
             0,
         )
-        triple_lock = parameters.gov.economic_assumptions.indices.triple_lock
-        uprating_since_data_year = triple_lock(period) / triple_lock(data_year)
-        return amount_in_data_year * uprating_since_data_year * WEEKS_IN_YEAR
+
+        # Apply triple lock uprating only when using dataset
+        # (i.e., when data year differs from simulation period)
+        if has_dataset:
+            triple_lock = (
+                parameters.gov.economic_assumptions.indices.triple_lock
+            )
+            uprating = triple_lock(period) / triple_lock(data_year)
+        else:
+            uprating = 1
+
+        return amount_in_data_year * uprating * WEEKS_IN_YEAR

policyengine_uk/variables/gov/dwp/is_CTC_eligible.py

@@ -11,7 +11,7 @@ class is_CTC_eligible(Variable):
     def formula(benunit, period, parameters):
         already_claiming = (
             add(benunit, period, ["child_tax_credit_reported"]) > 0
-        )
+        ) & (~add(benunit, period, ["would_claim_uc"]) > 0)
         return (
             benunit.any(benunit.members("is_child_for_CTC", period))
             & already_claiming

policyengine_uk/variables/gov/dwp/is_benefit_cap_exempt.py

@@ -4,20 +4,16 @@ from policyengine_uk.model_api import *
 class is_benefit_cap_exempt(Variable):
     value_type = bool
     entity = BenUnit
-    label = "Whether exempt from the benefits cap"
+    label = (
+        "Whether exempt from the benefits cap because of health or disability"
+    )
     definition_period = YEAR
+    reference = "https://www.gov.uk/benefit-cap/when-youre-not-affected"
 
     def formula(benunit, period, parameters):
-        QUAL_PERSONAL_BENEFITS = [
-            "carers_allowance",
-            "dla",
-            "esa_contrib",
-        ]
-        QUAL_BENUNIT_BENEFITS = ["working_tax_credit", "esa_income"]
-        qualifying_benunit_benefits = add(
-            benunit, period, QUAL_BENUNIT_BENEFITS
+        exempt_health = benunit(
+            "is_benefit_cap_exempt_health_disability", period
         )
-        qualifying_personal_benefits = add(
-            benunit, period, QUAL_PERSONAL_BENEFITS
-        )
-        return (qualifying_personal_benefits + qualifying_benunit_benefits) > 0
+        exempt_other = benunit("is_benefit_cap_exempt_other", period)
+        exempt_earnings = benunit("is_benefit_cap_exempt_earnings", period)
+        return exempt_health | exempt_earnings | exempt_other

policyengine_uk/variables/gov/dwp/is_benefit_cap_exempt_earnings.py

@@ -0,0 +1,66 @@
+from policyengine_uk.model_api import *
+
+
+class is_benefit_cap_exempt_earnings(Variable):
+    value_type = bool
+    entity = BenUnit
+    label = "Whether exempt from the benefits cap for non-health/disability reasons"
+    definition_period = YEAR
+    reference = "https://www.gov.uk/benefit-cap/when-youre-not-affected"
+
+    def formula(benunit, period, parameters):
+        # Check if anyone in benefit unit is over state pension age
+        person = benunit.members
+        over_pension_age = person("is_SP_age", period)
+        has_pensioner = benunit.any(over_pension_age)
+
+        # UC-specific exemptions
+        # Limited capability for work and work-related activity
+        has_lcwra = benunit.any(
+            person("uc_limited_capability_for_WRA", period)
+        )
+
+        # Carer element in UC indicates caring for someone with disability
+        gets_uc_carer_element = benunit("uc_carer_element", period) > 0
+
+        # Earnings exemption for UC (£846/month = £10,152/year)
+        # Note: Only check earned income, not UC amount itself to avoid circular dependency
+        uc_earned = benunit.sum(
+            benunit.members("employment_income", period)
+            + benunit.members("self_employment_income", period)
+            - benunit.members("income_tax", period)
+            - benunit.members("national_insurance", period)
+        )
+        earnings_threshold = 10_152
+        meets_earnings_test = uc_earned >= earnings_threshold
+
+        # Disability and carer benefits that exempt from cap
+        QUAL_PERSONAL_BENEFITS = [
+            "attendance_allowance",
+            "carers_allowance",
+            "dla",  # Disability Living Allowance (includes components)
+            "pip_dl",  # PIP daily living component
+            "pip_m",  # PIP mobility component
+            "iidb",  # Industrial injuries disability benefit
+        ]
+
+        # ESA and Working Tax Credit
+        QUAL_BENUNIT_BENEFITS = [
+            "esa_income",  # Income-based ESA
+            "working_tax_credit",  # If getting WTC, likely working enough
+        ]
+
+        qualifying_personal_benefits = add(
+            benunit, period, QUAL_PERSONAL_BENEFITS
+        )
+        qualifying_benunit_benefits = add(
+            benunit, period, QUAL_BENUNIT_BENEFITS
+        )
+
+        # Check for Armed Forces Compensation Scheme payments
+        afcs = benunit("afcs", period) > 0
+
+        # ESA contribution-based with support component
+        esa_support_component = benunit("esa_contrib", period) > 0
+
+        return meets_earnings_test

policyengine_uk/variables/gov/dwp/is_benefit_cap_exempt_health_disability.py

@@ -0,0 +1,75 @@
+from policyengine_uk.model_api import *
+
+
+class is_benefit_cap_exempt_health_disability(Variable):
+    value_type = bool
+    entity = BenUnit
+    label = (
+        "Whether exempt from the benefits cap because of health or disability"
+    )
+    definition_period = YEAR
+    reference = "https://www.gov.uk/benefit-cap/when-youre-not-affected"
+
+    def formula(benunit, period, parameters):
+        # Check if anyone in benefit unit is over state pension age
+        person = benunit.members
+        over_pension_age = person("is_SP_age", period)
+        has_pensioner = benunit.any(over_pension_age)
+
+        # UC-specific exemptions
+        # Limited capability for work and work-related activity
+        has_lcwra = benunit.any(
+            person("uc_limited_capability_for_WRA", period)
+        )
+
+        # Carer element in UC indicates caring for someone with disability
+        gets_uc_carer_element = benunit("uc_carer_element", period) > 0
+
+        # Earnings exemption for UC (£846/month = £10,152/year)
+        # Note: Only check earned income, not UC amount itself to avoid circular dependency
+        uc_earned = benunit.sum(
+            benunit.members("employment_income", period)
+            + benunit.members("self_employment_income", period)
+            - benunit.members("income_tax", period)
+            - benunit.members("national_insurance", period)
+        )
+        earnings_threshold = 10_152
+        meets_earnings_test = uc_earned >= earnings_threshold
+
+        # Disability and carer benefits that exempt from cap
+        QUAL_PERSONAL_BENEFITS = [
+            "attendance_allowance",
+            "carers_allowance",
+            "dla",  # Disability Living Allowance (includes components)
+            "pip_dl",  # PIP daily living component
+            "pip_m",  # PIP mobility component
+            "iidb",  # Industrial injuries disability benefit
+        ]
+
+        # ESA and Working Tax Credit
+        QUAL_BENUNIT_BENEFITS = [
+            "esa_income",  # Income-based ESA
+            "working_tax_credit",  # If getting WTC, likely working enough
+        ]
+
+        qualifying_personal_benefits = add(
+            benunit, period, QUAL_PERSONAL_BENEFITS
+        )
+        qualifying_benunit_benefits = add(
+            benunit, period, QUAL_BENUNIT_BENEFITS
+        )
+
+        # Check for Armed Forces Compensation Scheme payments
+        afcs = benunit("afcs", period) > 0
+
+        # ESA contribution-based with support component
+        esa_support_component = benunit("esa_contrib", period) > 0
+
+        return (
+            has_lcwra
+            | gets_uc_carer_element
+            | (qualifying_personal_benefits > 0)
+            | (qualifying_benunit_benefits > 0)
+            | afcs
+            | esa_support_component
+        )

policyengine_uk/variables/gov/dwp/is_benefit_cap_exempt_other.py

@@ -0,0 +1,66 @@
+from policyengine_uk.model_api import *
+
+
+class is_benefit_cap_exempt_other(Variable):
+    value_type = bool
+    entity = BenUnit
+    label = "Whether exempt from the benefits cap for non-health/disability reasons"
+    definition_period = YEAR
+    reference = "https://www.gov.uk/benefit-cap/when-youre-not-affected"
+
+    def formula(benunit, period, parameters):
+        # Check if anyone in benefit unit is over state pension age
+        person = benunit.members
+        over_pension_age = person("is_SP_age", period)
+        has_pensioner = benunit.any(over_pension_age)
+
+        # UC-specific exemptions
+        # Limited capability for work and work-related activity
+        has_lcwra = benunit.any(
+            person("uc_limited_capability_for_WRA", period)
+        )
+
+        # Carer element in UC indicates caring for someone with disability
+        gets_uc_carer_element = benunit("uc_carer_element", period) > 0
+
+        # Earnings exemption for UC (£846/month = £10,152/year)
+        # Note: Only check earned income, not UC amount itself to avoid circular dependency
+        uc_earned = benunit.sum(
+            benunit.members("employment_income", period)
+            + benunit.members("self_employment_income", period)
+            - benunit.members("income_tax", period)
+            - benunit.members("national_insurance", period)
+        )
+        earnings_threshold = 10_152
+        meets_earnings_test = uc_earned >= earnings_threshold
+
+        # Disability and carer benefits that exempt from cap
+        QUAL_PERSONAL_BENEFITS = [
+            "attendance_allowance",
+            "carers_allowance",
+            "dla",  # Disability Living Allowance (includes components)
+            "pip_dl",  # PIP daily living component
+            "pip_m",  # PIP mobility component
+            "iidb",  # Industrial injuries disability benefit
+        ]
+
+        # ESA and Working Tax Credit
+        QUAL_BENUNIT_BENEFITS = [
+            "esa_income",  # Income-based ESA
+            "working_tax_credit",  # If getting WTC, likely working enough
+        ]
+
+        qualifying_personal_benefits = add(
+            benunit, period, QUAL_PERSONAL_BENEFITS
+        )
+        qualifying_benunit_benefits = add(
+            benunit, period, QUAL_BENUNIT_BENEFITS
+        )
+
+        # Check for Armed Forces Compensation Scheme payments
+        afcs = benunit("afcs", period) > 0
+
+        # ESA contribution-based with support component
+        esa_support_component = benunit("esa_contrib", period) > 0
+
+        return has_pensioner | afcs | esa_support_component

policyengine_uk/variables/gov/dwp/winter_fuel_allowance.py

@@ -45,11 +45,12 @@ class winter_fuel_allowance(Variable):
         )
 
         meets_mtb_requirement = (
-            on_mtb | ~wfp.eligibility.require_benefits | meets_income_passport
+            on_mtb
+            | (not wfp.eligibility.require_benefits)
+            | meets_income_passport
         )
-        meets_spa_requirement = (
-            household.any(is_SP_age)
-            | ~wfp.eligibility.state_pension_age_requirement
+        meets_spa_requirement = household.any(is_SP_age) | (
+            not wfp.eligibility.state_pension_age_requirement
         )
         meets_higher_age_requirement = household.any(
             age >= wfp.eligibility.higher_age_requirement

policyengine_uk/variables/gov/gov_tax.py

@@ -26,12 +26,10 @@ class gov_tax(Variable):
         "national_insurance",
         "LVT",
         "carbon_tax",
-        "vat_change",
         "capital_gains_tax",
         "private_school_vat",
         "corporate_incident_tax_revenue_change",
         "consumer_incident_tax_revenue_change",
-        "high_income_incident_tax_change",
         "ni_employer",
         "student_loan_repayments",
         "vat",

policyengine_uk/variables/gov/hmrc/household_tax.py

@@ -29,7 +29,6 @@ class household_tax(Variable):
         "private_school_vat",
         "corporate_incident_tax_revenue_change",
         "consumer_incident_tax_revenue_change",
-        "high_income_incident_tax_change",
         "employer_ni_response_capital_incidence",
         "employer_ni_response_consumer_incidence",
         "student_loan_repayments",

policyengine_uk/variables/gov/hmrc/income_tax/allowances/gift_aid.py

@@ -7,3 +7,26 @@ class gift_aid(Variable):
     label = "Expenditure under Gift Aid"
     definition_period = YEAR
     unit = GBP
+    reference = dict(
+        title="Income Tax Act 2007, Part 8 Chapter 2 (Gift Aid)",
+        href="https://www.legislation.gov.uk/ukpga/2007/3/part/8/chapter/2",
+    )
+
+
+class gift_aid_grossed_up(Variable):
+    value_type = float
+    entity = Person
+    label = "Gift Aid grossed up by basic rate"
+    definition_period = YEAR
+    unit = GBP
+    reference = dict(
+        title="Income Tax Act 2007, s. 58 (2)",
+        href="https://www.legislation.gov.uk/ukpga/2007/3/section/58",
+    )
+
+    def formula(person, period, parameters):
+        gift_aid = person("gift_aid", period)
+        basic_rate = parameters(period).gov.hmrc.income_tax.rates.uk.rates[0]
+        # Grossed up amount = gift_aid / (1 - basic_rate)
+        # With basic_rate = 0.2: gift_aid / 0.8 = gift_aid * 1.25
+        return gift_aid / (1 - basic_rate)

policyengine_uk/variables/gov/hmrc/income_tax/allowances/personal_allowance.py

@@ -7,13 +7,20 @@ class personal_allowance(Variable):
     label = "Personal Allowance for the year"
     unit = GBP
     definition_period = YEAR
-    reference = "Income Tax Act 2007 s. 35"
+    reference = dict(
+        title="Income Tax Act 2007 s. 35, s. 58",
+        href="https://www.legislation.gov.uk/ukpga/2007/3/section/35",
+    )
 
     def formula(person, period, parameters):
         params = parameters(period)
         PA = params.gov.hmrc.income_tax.allowances.personal_allowance
         personal_allowance = PA.amount
         ANI = person("adjusted_net_income", period)
-        excess = max_(0, ANI - PA.maximum_ANI)
+        # Per ITA 2007 s.58, deduct grossed-up Gift Aid from ANI
+        # when calculating Personal Allowance taper
+        gift_aid_grossed_up = person("gift_aid_grossed_up", period)
+        ANI_for_taper = ANI - gift_aid_grossed_up
+        excess = max_(0, ANI_for_taper - PA.maximum_ANI)
         reduction = excess * PA.reduction_rate
         return max_(0, personal_allowance - reduction)

policyengine_uk/variables/gov/hmrc/income_tax/income_tax_pre_charges.py

@@ -16,4 +16,5 @@ class income_tax_pre_charges(Variable):
         "earned_income_tax",
         "savings_income_tax",
         "dividend_income_tax",
+        "property_income_tax",
     ]

policyengine_uk/variables/gov/hmrc/income_tax/liability/property_income_tax.py

@@ -0,0 +1,75 @@
+from policyengine_uk.model_api import *
+
+
+class property_income_tax(Variable):
+    value_type = float
+    entity = Person
+    label = "Income tax on property income"
+    definition_period = YEAR
+    reference = [
+        dict(
+            title="Income Tax (Trading and Other Income) Act 2005, s. 268",
+            href="https://www.legislation.gov.uk/ukpga/2005/5/section/268",
+        ),
+        dict(
+            title="OBR Economic and Fiscal Outlook November 2025",
+            href="https://obr.uk/efo/economic-and-fiscal-outlook-november-2025/",
+        ),
+    ]
+    unit = GBP
+
+    def formula(person, period, parameters):
+        """
+        Calculate income tax on property income.
+
+        For Scottish taxpayers, property income is taxed using the normal
+        Scottish income tax rates (the new property-specific rates do not
+        apply to Scotland).
+
+        For rUK taxpayers, property income is taxed using property-specific
+        rates. From April 2027, these are 2pp higher than standard UK rates
+        (22%, 42%, 47% vs 20%, 40%, 45%).
+
+        Property income is stacked on top of other earned income for
+        determining which tax band it falls into.
+        """
+        rates = parameters(period).gov.hmrc.income_tax.rates
+        taxable_property = person("taxable_property_income", period)
+        earned_taxable = person("earned_taxable_income", period)
+        other_earned_taxable = max_(0, earned_taxable - taxable_property)
+        is_scottish = person("pays_scottish_income_tax", period)
+
+        # Scottish taxpayers: use Scottish rates via calc method
+        # Tax on (other earned + property) minus tax on (other earned)
+        scottish_tax = rates.scotland.rates.calc(
+            other_earned_taxable + taxable_property
+        ) - rates.scotland.rates.calc(other_earned_taxable)
+
+        # rUK taxpayers: use property-specific rates
+        property_rates = rates.property
+        thresholds = rates.uk.thresholds
+        basic_upper = thresholds[1]  # Higher rate threshold
+        higher_upper = thresholds[2]  # Additional rate threshold
+
+        # Property income in basic rate band
+        basic_rate_space = max_(0, basic_upper - other_earned_taxable)
+        property_in_basic = min_(taxable_property, basic_rate_space)
+
+        # Property income in higher rate band
+        higher_start = max_(other_earned_taxable, basic_upper)
+        higher_rate_space = max_(0, higher_upper - higher_start)
+        remaining_after_basic = max_(0, taxable_property - property_in_basic)
+        property_in_higher = min_(remaining_after_basic, higher_rate_space)
+
+        # Property income in additional rate band
+        property_in_additional = max_(
+            0, taxable_property - property_in_basic - property_in_higher
+        )
+
+        ruk_tax = (
+            property_rates.basic * property_in_basic
+            + property_rates.higher * property_in_higher
+            + property_rates.additional * property_in_additional
+        )
+
+        return where(is_scottish, scottish_tax, ruk_tax)

policyengine_uk/variables/gov/hmrc/income_tax/liability/savings_income_tax.py

@@ -13,12 +13,12 @@ class savings_income_tax(Variable):
     unit = GBP
 
     def formula(person, period, parameters):
-        rates = parameters(period).gov.hmrc.income_tax.rates.uk.rates
+        savings_rates = parameters(period).gov.hmrc.income_tax.rates.savings
         basic_rate_amount = person("basic_rate_savings_income", period)
         higher_rate_amount = person("higher_rate_savings_income", period)
         add_rate_amount = person("add_rate_savings_income", period)
         return (
-            rates[0] * basic_rate_amount
-            + rates[1] * higher_rate_amount
-            + rates[2] * add_rate_amount
+            savings_rates.basic * basic_rate_amount
+            + savings_rates.higher * higher_rate_amount
+            + savings_rates.additional * add_rate_amount
         )

policyengine_uk/variables/gov/hmrc/national_insurance/salary_sacrifice_broad_base_haircut.py

@@ -0,0 +1,43 @@
+from policyengine_uk.model_api import *
+
+
+class salary_sacrifice_broad_base_haircut(Variable):
+    label = "Salary sacrifice broad-base employment income haircut"
+    documentation = (
+        "Reduction in employment income for ALL workers due to employers spreading "
+        "the increased NI costs from the salary sacrifice cap across all employees. "
+        "This is a negative value that reduces employment_income. "
+        "\n\n"
+        "When the salary sacrifice cap is active, employers face increased NI costs "
+        "on excess contributions. They spread these costs across ALL employees (not "
+        "just salary sacrificers), as they cannot target only affected workers without "
+        "those workers negotiating to recoup the loss. "
+        "\n\n"
+        "See https://policyengine.org/uk/research/uk-salary-sacrifice-cap for methodology."
+    )
+    entity = Person
+    definition_period = YEAR
+    value_type = float
+    unit = GBP
+    reference = "https://policyengine.org/uk/research/uk-salary-sacrifice-cap"
+
+    def formula(person, period, parameters):
+        cap = parameters(
+            period
+        ).gov.hmrc.national_insurance.salary_sacrifice_pension_cap
+
+        # If cap is infinite, no haircut applies
+        if np.isinf(cap):
+            return 0
+
+        # Get the broad-base haircut rate (applies to ALL workers)
+        haircut_rate = parameters(
+            period
+        ).gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate
+
+        # Apply haircut to employment income before any salary sacrifice adjustments
+        # Use employment_income_before_lsr to avoid circular dependency
+        employment_income = person("employment_income_before_lsr", period)
+
+        # Return negative value (this reduces employment income for everyone)
+        return -employment_income * haircut_rate