Public Sector: Car Allowances

Treasury written question – answered on 30th May 2022.

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Photo of Mike Amesbury Mike Amesbury Shadow Minister (Housing, Communities and Local Government)

To ask the Chancellor of the Exchequer, if he will (a) lift the mileage rates limit for public sector workers who are required to use their vehicle to do their jobs and (b) increase the approved mileage rates in line with the current cost of fuel.

Photo of Helen Whately Helen Whately The Exchequer Secretary

The Government sets Approved Mileage Allowance Payments (AMAPs) to minimise administrative burdens. AMAPs aim to reflect running costs including fuel, servicing, and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAPs.

Employers are not required to use the AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.

The Government keeps this policy under review.

Also, the Government recognises that public sector workers play a vital role in the running of our economy, and in delivering our public services.  Spending Review 2021 confirmed that public sector workers will see pay rises across the whole Spending Review period (22/23-24/25).

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