Limit free TV licences to recipients and partners

changelog.d/2150.fixed.md

@@ -0,0 +1 @@
+- Correct the free TV licence discount so the over-75 person and Pension Credit recipient must belong to the same benefit unit.

policyengine_uk/tests/policy/baseline/gov/dcms/bbc/tv_licence_discount.yaml

@@ -79,3 +79,98 @@
     is_blind: false
   output:
     tv_licence_discount: 0
+
+- name: Separate benefit units do not combine age and Pension Credit.
+  period: 2023
+  input:
+    people:
+      older_person:
+        age: 75
+      pension_credit_recipient:
+        age: 70
+    benunits:
+      older_person_benunit:
+        members: [older_person]
+        pension_credit: 0
+      recipient_benunit:
+        members: [pension_credit_recipient]
+        pension_credit: 1
+    households:
+      household:
+        members: [older_person, pension_credit_recipient]
+  output:
+    tv_licence_discount: 0
+
+- name: Partners combine age and Pension Credit within one benefit unit.
+  period: 2023
+  input:
+    people:
+      older_partner:
+        age: 75
+      pension_credit_recipient:
+        age: 70
+    benunits:
+      couple:
+        members: [older_partner, pension_credit_recipient]
+        pension_credit: 1
+    households:
+      household:
+        members: [older_partner, pension_credit_recipient]
+  output:
+    tv_licence_discount: 1
+
+- name: Separate benefit units retain only the unrestricted 2020 free licence share.
+  period: 2020
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older_person:
+        age: 75
+        is_blind: false
+      pension_credit_recipient:
+        age: 70
+    benunits:
+      older_benunit:
+        members: [older_person]
+        pension_credit: 0
+      recipient_benunit:
+        members: [pension_credit_recipient]
+        pension_credit: 1
+    households:
+      household:
+        members: [older_person, pension_credit_recipient]
+        tv_licence_required: true
+        would_evade_tv_licence_fee: false
+  output:
+    tv_licence_free_licence_share: 0.3205479452
+    tv_licence_discount: 0.3205479452
+    free_tv_licence_value: 50.49
+    tv_licence: 107.01
+
+- name: Separate benefit units do not extend the 2020 free share for a blind older person.
+  period: 2020
+  absolute_error_margin: 0.01
+  input:
+    people:
+      older_person:
+        age: 75
+        is_blind: true
+      pension_credit_recipient:
+        age: 70
+    benunits:
+      older_benunit:
+        members: [older_person]
+        pension_credit: 0
+      recipient_benunit:
+        members: [pension_credit_recipient]
+        pension_credit: 1
+    households:
+      household:
+        members: [older_person, pension_credit_recipient]
+        tv_licence_required: true
+        would_evade_tv_licence_fee: false
+  output:
+    tv_licence_free_licence_share: 0.3205479452
+    tv_licence_discount: 0.6602739726
+    free_tv_licence_value: 50.49
+    tv_licence: 53.51

policyengine_uk/variables/gov/dcms/bbc/tv_licence/tv_licence_free_licence_share.py

@@ -6,28 +6,36 @@ class tv_licence_free_licence_share(Variable):
     label = "Share of the year covered by a free TV licence"
     documentation = (
         "Share of the year for which the household qualifies for the complete "
-        "age-based TV licence exemption. This excludes the blind discount."
+        "age-based TV licence exemption. Where Pension Credit is required, "
+        "the qualifying older person must belong to the recipient's benefit "
+        "unit. This excludes the blind discount."
     )
     entity = Household
     definition_period = YEAR
     value_type = float
     unit = "/1"
     reference = (
         "https://www.legislation.gov.uk/ukpga/2003/21/section/365A",
+        "https://www.legislation.gov.uk/uksi/2022/693/pdfs/uksi_20220693_en.pdf",
         "https://www.gov.uk/government/news/bbc-and-governments-joint-statement-on-delaying-the-tv-licence-fee-for-over-75s",
         "https://www.gov.uk/free-discount-tv-licence",
+        "https://www.gov.uk/government/publications/pension-credit-technical-guidance/a-detailed-guide-to-pension-credit-for-advisers-and-others",
+        "https://www.nidirect.gov.uk/articles/free-tv-licences",
+        "https://www.legislation.gov.uk/uksi/2004/692/regulation/5",
     )
 
     def formula(household, period, parameters):
         person = household.members
-        claims_pc = add(household, period, ["pension_credit"]) > 0
+        receives_pc = person.benunit("pension_credit", period) > 0
         free_licence_share = 0
         for aged_rules, share in fiscal_year_segments(
             parameters.gov.dcms.bbc.tv_licence.discount.aged,
             period.start.year,
         ):
-            has_aged = household.any(person("age", period) >= aged_rules.min_age)
-            meets_pc_requirement = not_(aged_rules.must_claim_pc) | claims_pc
+            aged = person("age", period) >= aged_rules.min_age
+            has_aged = household.any(aged)
+            has_aged_with_pc = household.any(aged & receives_pc)
+            meets_pc_requirement = not_(aged_rules.must_claim_pc) | has_aged_with_pc
             free_licence_share += (
                 has_aged * meets_pc_requirement * aged_rules.discount * share
             )