PolicyEngine / PolicyEngine/policyengine-uk

Add RF methodology for earnings growth

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Dominant language
Python
Stars
50
Forks
33
Avg merge
20h 58m
Merged PRs (30d)
14

Description

In every year, we model the wage floor, ensuring that no-one in our data falls below their age-appropriate minimum wage. We include some ‘spillover effect’ for those just above the wage floor. We also model the extension of the National Living Wage to those aged 21-22 in 2024-25 and (provisionally) to those aged 18-20 by 2029-30. We assume that the wage floor beyond 2025-26 rises in line with average earnings.

Beyond these changes, all employee and self-employed earnings are uprated equally in each year. Overall wage growth is constrained to match ONS figures for the outturn period and Bank of England (and later OBR) figures for the projection period, taking into account the effects of the wage floor and compositional changes. The Bank only provides private sector average earnings growth and we assume that this approximates average earnings growth going forward.

From https://www.resolutionfoundation.org/app/uploads/2025/06/LivingStandardsOutlook2025.pdf

Contributor guide

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First steps

  1. Read the whole issue, then the project's contributing guide.
  2. Comment on the issue to say you are picking it up — it saves two people doing the same work.
  3. Fork the repository and make your change on a branch.
  4. Open a pull request that references the issue number.

Research direction

The issue identifies no file, test, or entry point. Start by reading the cited Living Standards Outlook 2025 PDF and locating the existing earnings-growth methodology; done means the model reflects the quoted wage-floor, spillover, and ONS, Bank, and OBR assumptions.

Written by the indexing model from the issue text.

Assessment

Tech stack
python
Domain
backend, data
Issue type
Feature
Difficulty
4/5
Estimated time
3-5 days
Activity status
Stale
Clarity
Needs clarification
Newbie friendliness
35/100

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