UKMOD B1.06 has been released, with policies updated to reflect the Spring Budget announcements and the new OBR forecasts.

The main novelties included in the model are:

• Increase the maximum support available in Universal Credit for childcare costs to£951 (per month) for one child and £1,630 for two children from July 2023 and increases them by CPI each year thereafter until 2027-28
• Starting rate limit for savings income: maintain at £5,000 for 2023-24
• National Insurance contributions: maintaining the Lower Earnings Limit and Small Profits Threshold at 2022-23 levels
• All index factors assumed for the model have been updated to the latest OBR forecasts. These uprating factors also affect forward projections for many of theparameters assumed for system years from 2024/25.

Some policy reforms announced in the Budget are within the scope of UKMOD, but were omitted due to the static framework of UKMOD:

• Universal Credit childcare support upfront for parents moving into work
• Increase the Severe Disability Premium Transitional Element (UKMOD does notaccount for transitional elements)
• Maintain the Universal Credit surplus earnings threshold at £2,500 in 2023-24

The model can be downloaded from here.