- Millions of drivers who claim motoring expenses from
their employer will see approved mileage
rates reviewed ahead of a future Budget.
- Approved mileage allowance payment rates have not changed
since 2011, despite motoring costs evolving significantly.
- Part of a plan to help keep prices down at the pump with
fuel duty already frozen.
The Chancellor highlighted the issue earlier this
month, recognising that approved mileage allowance payment rates
have not changed since 2011 even as motoring costs have
evolved significantly – with low-paid workers in vital
sectors like home care picking up the tab.
The workers-first review will focus on people who rely
on their car to do their job, ensuring they are not
left out of pocket. As part of this, the government
will meet with people struggling with increased
costs to inform this work as it develops.
In the meantime, wider action is being taken to support people
with the cost of living and keep prices down at the pump,
including by freezing fuel duty until September.
Exchequer Secretary to the Treasury said:
Millions of working people rely on their car to do their
job. But mileage rates have been unchanged
since 2011 and that's increased the cost
of working. A review is well overdue.
Keeping prices down at the pump is an important way we can help
people with the cost of living which is why fuel duty
is already frozen.
