MaxGhenis · Nov 1, 2026 · Nov 1, 2026 · Nov 1, 2026 · Nov 1, 2026 · Nov 1, 2026
diff --git a/changelog.d/2784.fixed.md b/changelog.d/2784.fixed.md
@@ -0,0 +1 @@
+PolicyEngine now includes the claimant's and partner's Maternity Allowance when it calculates the benefit cap on Universal Credit and Housing Benefit. It leaves a non-dependent adult's allowance out (#2784). Parliament lists the allowance among the welfare benefits whose total the Secretary of State may cap (Welfare Reform Act 2012 s.96(10)(i)).
diff --git a/policyengine_uk/tests/policy/baseline/gov/dwp/benefit_cap/benefit_cap_capped_total.yaml b/policyengine_uk/tests/policy/baseline/gov/dwp/benefit_cap/benefit_cap_capped_total.yaml
@@ -327,3 +327,335 @@
     is_uc_benefit_cap_single_claimant_rate: false
     uc_benefit_cap: 22_020
     benefit_cap_reduction: 0
+
+# Parliament lists Maternity Allowance among the welfare benefits whose
+# total the Secretary of State may cap by regulations (WRA 2012 s.96(1),
+# (10)(i)). The woman entitled to it receives it (SSCBA 1992 s.35(1)), so DWP
+# and councils count the allowance of a claimant or partner and leave out
+# that of a non-dependent adult in the household. Under UC Regs 2013 reg
+# 80(4) and HB Regs 2006 reg 75C(4) they use the amount they count as income.
+# DWP counts it in full as unearned income (reg 66(1)(b)(viii)), and councils
+# disregard none of it under HB Regs 2006 reg 40 and Schedule 5.
+
+- name: DWP counts the claimant's own Maternity Allowance in the capped total
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 30
+        maternity_allowance_reported: 3_000
+    benunits:
+      family:
+        members: [claimant]
+        universal_credit_pre_benefit_cap: 15_000
+    households:
+      home:
+        members: [claimant]
+        region: NORTH_EAST
+  output:
+    maternity_allowance: 3_000
+    benefit_cap_welfare_benefits: 18_000
+    # A woman can become entitled to Maternity Allowance from the 11th week
+    # before the expected week of confinement (SSCBA 1992 s.35(1)(a)), so DWP
+    # can pay it to a woman with no child yet. DWP applies the limit for a
+    # single claimant with no child outside London, 14,753 (UC Regs 2013 reg
+    # 80A(2)(c)). Under reg 81 it reduces her Universal Credit by max(15,000 +
+    # 3,000 - 14,753 - 0 childcare, 0) = 3,247 and pays 15,000 - 3,247 =
+    # 11,753.
+    uc_benefit_cap: 14_753
+    uc_benefit_cap_reduction: 3_247
+    housing_benefit_benefit_cap_reduction: 0
+    benefit_cap_reduction: 3_247
+    universal_credit: 11_753
+
+- name: DWP counts a partner's Maternity Allowance in the capped total
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 32
+      partner:
+        age: 30
+        maternity_allowance_reported: 4_000
+    benunits:
+      family:
+        members: [claimant, partner]
+        universal_credit_pre_benefit_cap: 20_000
+    households:
+      home:
+        members: [claimant, partner]
+        region: NORTH_EAST
+  output:
+    is_uc_assessed_claimant: [true, true]
+    maternity_allowance: [0, 4_000]
+    benefit_cap_welfare_benefits: 24_000
+    # DWP applies the limit for joint claimants outside London, 22,020 (UC
+    # Regs 2013 reg 80A(2)(d)(i)). Under reg 81 it reduces their Universal
+    # Credit by max(20,000 + 4,000 - 22,020 - 0 childcare, 0) = 1,980 and
+    # pays 20,000 - 1,980 = 18,020.
+    uc_benefit_cap: 22_020
+    uc_benefit_cap_reduction: 1_980
+    housing_benefit_benefit_cap_reduction: 0
+    benefit_cap_reduction: 1_980
+    universal_credit: 18_020
+
+- name: DWP leaves a non-dependent adult's Maternity Allowance out of the family's capped total
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 40
+        is_claimant_or_partner: true
+      adult:
+        age: 30
+        is_claimant_or_partner: false
+        current_education: NOT_IN_EDUCATION
+        maternity_allowance_reported: 5_000
+    benunits:
+      family:
+        members: [claimant, adult]
+        universal_credit_pre_benefit_cap: 20_000
+    households:
+      home:
+        members: [claimant, adult]
+        region: NORTH_EAST
+  output:
+    maternity_allowance: [0, 5_000]
+    benefit_cap_welfare_benefits: 20_000
+    # Under UC reg 81 DWP reduces the claimant's Universal Credit by
+    # max(20,000 - 14,753 - 0 childcare, 0) = 5,247. The adult receives the
+    # 5,000 in their own right.
+    uc_benefit_cap_reduction: 5_247
+    housing_benefit_benefit_cap_reduction: 0
+    benefit_cap_reduction: 5_247
+    universal_credit: 14_753
+
+- name: A council counts the claimant's own Maternity Allowance when it caps Housing Benefit for a family without Universal Credit
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 30
+        maternity_allowance_reported: 6_000
+    benunits:
+      family:
+        members: [claimant]
+        would_claim_uc: false
+        would_claim_housing_benefit: true
+        housing_benefit_pre_benefit_cap: 9_000
+    households:
+      home:
+        members: [claimant]
+        region: NORTH_EAST
+  output:
+    universal_credit_pre_benefit_cap: 0
+    benefit_cap_welfare_benefits: 15_000
+    # The council applies the limit for a single claimant outside London,
+    # 14,753 (HB Regs 2006 reg 75CA(2)(c)). Under reg 75D it reduces her
+    # Housing Benefit by min(9,000 + 6,000 - 14,753, 9,000 - 0.50 * 52) = 247
+    # and pays 9,000 - 247 = 8,753. She has no Universal Credit award for DWP
+    # to reduce (UC reg 78(1)).
+    housing_benefit_benefit_cap: 14_753
+    uc_benefit_cap_reduction: 0
+    housing_benefit_benefit_cap_reduction: 247
+    benefit_cap_reduction: 247
+    housing_benefit: 8_753
+
+# Issue #2784's family through the whole Universal Credit award, 2026-27: a
+# lone parent of 30 with children of 1, 4 and 7 renting privately for 1,500 a
+# month in Tyneside, the North East's default Broad Rental Market Area.
+#
+# Universal Credit before the cap, monthly (DWP, Benefit and pension rates
+# 2026 to 2027):
+#   standard allowance, single 25 or over         424.90
+#   child element, 3 x 303.94 (SI 2026/148 Sch 13; Parliament revoked
+#     reg 24A, the two-child limit, from 6 April 2026 through the Universal
+#     Credit (Removal of Two Child Limit) Act 2026 s.1(3)(a))  911.82
+#   housing costs element: the lower of the rent, 1,500, and the cap rent
+#     (UC Regs 2013 Sch 4 para 22), the three-bedroom rate of 650.00 (DWP,
+#     Universal Credit LHA monthly rates 2026 to 2027, Tyneside): one bedroom
+#     for the parent, one for two children under 10, one for the third child
+#     (Sch 4 para 10(1)(a), (d), (f))             650.00
+#   maximum amount                               1,986.72, or 23,840.64 a year
+# less Maternity Allowance in full (reg 66(1)(b)(viii)), so 23,840.64 - 6,000
+# = 17,840.64 a year.
+#
+# Child Benefit: (27.05 + 2 x 17.90) x 52 = 3,268.20 a year (Child Benefit
+# (Rates) Regulations 2006 reg 2(1), as the Treasury set the rates through SI
+# 2026/232 art. 2).
+# DWP applies the family limit of 22,020 (reg 80A(2)(d)(ii)) and grants no
+# exception.
+
+- name: DWP takes the excess over the cap off the issue 2784 family's Universal Credit when it has no Maternity Allowance
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+      child1:
+        age: 1
+      child2:
+        age: 4
+      child3:
+        age: 7
+    benunits:
+      family:
+        members: [parent, child1, child2, child3]
+    households:
+      home:
+        members: [parent, child1, child2, child3]
+        region: NORTH_EAST
+        brma: TYNESIDE
+        tenure_type: RENT_PRIVATELY
+        rent: 18_000
+  output:
+    uc_standard_allowance: 5_098.80
+    uc_child_element: 10_941.84
+    uc_housing_costs_element: 7_800
+    universal_credit_pre_benefit_cap: 23_840.64
+    child_benefit: 3_268.20
+    # 23,840.64 + 3,268.20 = 27,108.84.
+    benefit_cap_welfare_benefits: 27_108.84
+    uc_benefit_cap: 22_020
+    is_uc_benefit_cap_exempt: false
+    # Under reg 81 DWP reduces the award by 27,108.84 - 22,020 - 0 childcare
+    # = 5,088.84 and pays 23,840.64 - 5,088.84 = 18,751.80.
+    uc_benefit_cap_reduction: 5_088.84
+    universal_credit: 18_751.80
+
+- name: DWP takes the issue 2784 family's Maternity Allowance off its capped Universal Credit pound for pound
+  period: 2026
+  absolute_error_margin: 0.01
+  input:
+    people:
+      parent:
+        age: 30
+        maternity_allowance_reported: 6_000
+      child1:
+        age: 1
+      child2:
+        age: 4
+      child3:
+        age: 7
+    benunits:
+      family:
+        members: [parent, child1, child2, child3]
+    households:
+      home:
+        members: [parent, child1, child2, child3]
+        region: NORTH_EAST
+        brma: TYNESIDE
+        tenure_type: RENT_PRIVATELY
+        rent: 18_000
+  output:
+    uc_maximum_amount: 23_840.64
+    uc_unearned_income: 6_000
+    universal_credit_pre_benefit_cap: 17_840.64
+    # 17,840.64 + 3,268.20 Child Benefit + 6,000 Maternity Allowance
+    # = 27,108.84, the same total as without the allowance.
+    benefit_cap_welfare_benefits: 27_108.84
+    # Under reg 81 DWP reduces the award by 27,108.84 - 22,020 - 0 childcare
+    # = 5,088.84 and pays 17,840.64 - 5,088.84 = 12,751.80. With the
+    # allowance the family keeps 12,751.80 + 6,000 = 18,751.80, the same as
+    # it keeps from Universal Credit alone without it.
+    uc_benefit_cap_reduction: 5_088.84
+    universal_credit: 12_751.80
+
+# Each of the next three cases holds the award before the cap fixed, so the
+# total and the reduction follow from the Maternity Allowance alone.
+
+- name: DWP counts the claimant's Maternity Allowance award, not the amount she reported
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 30
+        maternity_allowance_reported: 999
+        maternity_allowance: 3_000
+    benunits:
+      family:
+        members: [claimant]
+        universal_credit_pre_benefit_cap: 15_000
+    households:
+      home:
+        members: [claimant]
+        region: NORTH_EAST
+  output:
+    # DWP counts her 3,000 award (UC Regs 2013 reg 80(1), (4)): 15,000 +
+    # 3,000.
+    benefit_cap_welfare_benefits: 18_000
+    uc_benefit_cap: 14_753
+    # Under reg 81 DWP reduces her Universal Credit by max(18,000 - 14,753
+    # - 0 childcare, 0) = 3,247 and pays 15,000 - 3,247 = 11,753.
+    uc_benefit_cap_reduction: 3_247
+    universal_credit: 11_753
+
+- name: DWP counted the claimant's own Maternity Allowance in the capped total in 2024-25
+  period: 2024
+  input:
+    people:
+      claimant:
+        age: 30
+        maternity_allowance_reported: 3_000
+    benunits:
+      family:
+        members: [claimant]
+        universal_credit_pre_benefit_cap: 15_000
+    households:
+      home:
+        members: [claimant]
+        region: NORTH_EAST
+  output:
+    maternity_allowance: 3_000
+    # The Secretary of State included Maternity Allowance in UC Regs 2013
+    # reg 79(4)(g) as made, and Parliament has listed it in WRA 2012
+    # s.96(10)(i) since 2016.
+    benefit_cap_welfare_benefits: 18_000
+    # The Secretary of State set the limit for a single claimant with no
+    # child outside London at 14,753 from 1 April 2023 through SI 2023/335
+    # reg 3(c), for assessment periods beginning on or after 10 April 2023
+    # (reg 1(3); UC Regs 2013 reg 80A(2)(c)). Under reg 81 DWP reduces her
+    # Universal Credit by max(15,000 + 3,000 - 14,753 - 0 childcare, 0) =
+    # 3,247 and pays 15,000 - 3,247 = 11,753.
+    uc_benefit_cap: 14_753
+    uc_benefit_cap_reduction: 3_247
+    universal_credit: 11_753
+
+- name: On Universal Credit, DWP counts the Maternity Allowance of an entered joint claimant whom the council doesn't treat as the Housing Benefit partner
+  period: 2025
+  input:
+    people:
+      claimant:
+        age: 40
+        is_claimant_or_partner: true
+        is_uc_claimant: true
+      adult:
+        age: 30
+        is_claimant_or_partner: false
+        is_uc_claimant: true
+        current_education: NOT_IN_EDUCATION
+        maternity_allowance_reported: 4_000
+    benunits:
+      family:
+        members: [claimant, adult]
+        universal_credit_pre_benefit_cap: 20_000
+        housing_benefit_pre_benefit_cap: 0
+    households:
+      home:
+        members: [claimant, adult]
+        region: NORTH_EAST
+  output:
+    is_uc_assessed_claimant: [true, true]
+    maternity_allowance: [0, 4_000]
+    # DWP counts the joint claimants' welfare benefits (UC Regs 2013 regs
+    # 78(2)(a), 80(1)): 20,000 + 4,000.
+    benefit_cap_welfare_benefits: 24_000
+    # DWP applies the limit for joint claimants outside London, 22,020 (reg
+    # 80A(2)(d)(i)). Under reg 81 it reduces their Universal Credit by
+    # max(24,000 - 22,020 - 0 childcare, 0) = 1,980 and pays 20,000 - 1,980
+    # = 18,020.
+    uc_benefit_cap: 22_020
+    uc_benefit_cap_reduction: 1_980
+    housing_benefit_benefit_cap_reduction: 0
+    universal_credit: 18_020
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		@@ -0,0 +1 @@
		PolicyEngine now includes the claimant's and partner's Maternity Allowance when it calculates the benefit cap on Universal Credit and Housing Benefit. It leaves a non-dependent adult's allowance out (#2784). Parliament lists the allowance among the welfare benefits whose total the Secretary of State may cap (Welfare Reform Act 2012 s.96(10)(i)).