New Clause 2 - Approved mileage allowance payments: review of rate for care workers

Taxation (Energy and Vehicles) Bill – in the House of Commons at 3:30 pm on 1 July 2026.

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Votes in this debate

“(1) Within six months of the passing of this Act, the Chancellor of the Exchequer must lay before the House of Commons a review of the adequacy of the approved mileage allowance payment rate set under section 2 in respect of care workers using a personal vehicle in connection with their employment.

(2) The review under subsection (1) must consider—

(a) whether the rate of 55 pence per mile adequately reflects the costs incurred by paid care workers when travelling between the homes of those for whom they provide care;

(b) the merits of setting a higher approved rate for paid care workers who are required to transport specialist equipment, medication or mobility aids in connection with their caring responsibilities;

(c) the merits of setting a higher approved rate for paid care workers who make three or more separate care visits in a single day; and

(d) the interaction between mileage reimbursement practices in the social care sector and the effective hourly rate received by paid care workers relative to the National Living Wage.

(3) In preparing the review under subsection (1), the Chancellor of the Exchequer must consult—

(a) representatives of paid care workers;

(b) representatives of employers in the social care sector; and

(c) such other persons as the Chancellor considers appropriate.

(4) In this section “care worker” means a person employed to provide personal care to individuals in their own homes, whether employed directly or through a domiciliary care agency.”—(Daisy Cooper.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Division number 46 Taxation (Energy and Vehicles) Bill Committee: New Clause 2

Aye: 80 MPs

No: 279 MPs

Aye: A-Z by last name

Tellers

No: A-Z by last name

Tellers

The Committee divided: Ayes 80, Noes 281.

Question accordingly negatived.

Clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

Chancellor of the Exchequer

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House of Commons

The House of Commons is one of the houses of parliament. Here, elected MPs (elected by the "commons", i.e. the people) debate. In modern times, nearly all power resides in this house. In the commons are 650 MPs, as well as a speaker and three deputy speakers.

clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

Chancellor

The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.

teller

A person involved in the counting of votes. Derived from the word 'tallier', meaning one who kept a tally.

Division

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