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House of Lords: Allowances

House of Lords written question – answered on 6th April 2011.

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Photo of Lord Berkeley Lord Berkeley Labour

To ask the Chairman of Committees, further to his Written Statement on 1 April (WS 124) on mileage allowances, what is the justification for increasing the allowance for car travel under 10,000 miles a year by 12.5 per cent.

Photo of Lord Brabazon of Tara Lord Brabazon of Tara Chair, Hybrid Instruments Committee (Lords), Chair, Liaison Committee (Lords), Chair, Committee for Privileges and Conduct (Lords), Chair, Procedure Committee (Lords), Chair, Refreshment Committee (Lords), Chair, Committee of Selection (Lords), Chair, Standing Orders (Private Bills) Committee (Lords), Chairman of Committees, House of Lords, Deputy Speaker (Lords)

The maximum allowance for members of the House for journeys by car, motorcycle or bicycle was set by resolution of the House on 10 November 2004. Under that resolution, the allowance is payable at the rate which is applicable to the vehicle under subsection (2) of Section 230 of the Income Tax (Earnings and Pensions) Act 2003. The allowance is accordingly directly linked to a statutory scheme administered by HM Revenue and Customs. The Chancellor of the Exchequer's Budget Statement announced that, from 6 April 2011, the maximum car mileage allowance would be increased to 45 pence per mile for the first 10,000 miles. The increase in the allowance is therefore a matter for the Chancellor of the Exchequer.

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