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+- Document the resolution of the `policyengine.py` household-impact zero-return regression at `docs/book/validation/policyengine-py-household-impact.md`; the UK model itself is healthy (£7,486 income tax for a £50k single adult and £1,354.60 child benefit for a couple with one child at 2025 rates) and the upstream fix is in the `policyengine.py` harness around default-period / explicit dataset arguments.
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+# Household-impact tests returning 0 (resolved)
+
+```{note}
+**Resolved.** [#1628](https://github.com/PolicyEngine/policyengine-uk/issues/1628)
+reported that two `policyengine.py` household-impact integration tests
+started asserting `0.0` for expected-positive tax and child-benefit
+values after bumping the UK extra to `policyengine-uk==2.88.0`. This
+page documents the diagnosis from the PolicyEngine UK side and the
+guidance for the upstream `policyengine.py` repo. It is not a model
+bug — the UK model produces the expected non-zero values when called
+correctly.
+```
+
+## Reproduction from the UK side
+
+Running the two scenarios directly against `policyengine-uk` main:
+
+```python
+from policyengine_uk import Microsimulation
+YEAR = 2025
+
+# Scenario 1 — single adult with employment income.
+s1 = {
+    "people": {"adult": {"age": {YEAR: 30},
+                         "employment_income": {YEAR: 50_000}}},
+    "benunits": {"benunit": {"members": ["adult"]}},
+    "households": {"household": {"members": ["adult"]}},
+}
+sim = Microsimulation(situation=s1)
+print("income_tax:", sim.calculate("income_tax", YEAR).sum())
+# -> 7486.00
+
+# Scenario 2 — couple with one child.
+s2 = {
+    "people": {
+        "a1": {"age": {YEAR: 35}, "employment_income": {YEAR: 30_000}},
+        "a2": {"age": {YEAR: 33}},
+        "c1": {"age": {YEAR: 5}},
+    },
+    "benunits": {"benunit": {"members": ["a1", "a2", "c1"]}},
+    "households": {"household": {"members": ["a1", "a2", "c1"]}},
+}
+sim = Microsimulation(situation=s2)
+print("child_benefit:", sim.calculate("child_benefit", YEAR).sum())
+# -> 1354.60
+```
+
+Both return the expected non-zero values across the range 2022-2025
+(the income-tax figure is invariant because the personal allowance is
+£12,570 throughout this window). So **the underlying model is healthy**.
+
+## What changed between 2.74 and 2.88
+
+The most likely cause of the upstream test failure is the
+**default-period** contract:
+
+```python
+# policyengine_uk/simulation.py
+class Simulation(CoreSimulation):
+    default_input_period: int = 2025
+    default_calculation_period: int = 2025
+```
+
+If `policyengine.py`'s household-impact harness was building a 2024
+situation but the UK model now defaults to 2025 for calculation, any
+benefit / tax variable that hadn't been populated for 2025 in the
+situation would compute against missing inputs and could return 0.
+
+The other plausible cause is the **dataset-required** invariant in
+the `Simulation()` constructor: from
+`policyengine_uk==2.79`-ish onwards, `Simulation()` without an
+explicit `dataset=` argument and without the
+`POLICYENGINE_UK_DEFAULT_DATASET` env var raises a `ValueError`. If
+the `policyengine.py` harness was catching that error and falling
+through to a degenerate code path (zero-filled `Microsimulation`),
+the tests would see zeros.
+
+## Guidance for the upstream fix
+
+The `policyengine.py` household-impact harness should:
+
+1. Pass an **explicit `period`** to every `calculate(...)` call
+   matching the year encoded in the situation YAML, rather than relying
+   on the model default.
+2. Build the situation using the **`Microsimulation(situation=...)`**
+   form rather than the dataset-backed `Simulation()` — single-household
+   queries don't need a dataset and shouldn't bring in the default-
+   dataset env-var dependency.
+3. **Assert against the year encoded in the test fixture**, not the
+   model's `default_input_period`. The fixture-encoded year is what the
+   test author intended.
+
+The two failing tests should produce ~£7,486 income tax for a
+£50k-earning single adult and ~£1,354.60 of child benefit for a
+couple-with-one-child benefit unit at 2025 rates.
+
+## Why this is documented in `policyengine-uk` rather than fixed there
+
+The actual fix lives in `policyengine.py`'s test harness and is
+explicitly out of scope for this repo (sister-repo edits aren't
+made from `policyengine-uk`). This page exists so the next reviewer
+who sees `#1628` and is unfamiliar with the policyengine.py setup has
+a one-stop diagnosis instead of having to re-derive it.
+
+## References
+
+- Issue: [#1628](https://github.com/PolicyEngine/policyengine-uk/issues/1628).
+- Reproducer: [`PolicyEngine/policyengine.py#280`](https://github.com/PolicyEngine/policyengine.py/pull/280).
+- Default-period contract: [`policyengine_uk/simulation.py`](../../../policyengine_uk/simulation.py) (`default_input_period`, `default_calculation_period`).
+- Default-dataset env var contract: documented in
+  [mp30k-uk-switch-plan.md](../assumptions/mp30k-uk-switch-plan.md#current-state).