Public Sector: Mileage Allowances

Treasury written question – answered at on 13 November 2023.

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Photo of Nick Smith Nick Smith Shadow Deputy Leader of the House of Commons

To ask the Chancellor of the Exchequer, what plans his Department has to assist public sector organisations to support workers using their own cars for work.

Photo of Gareth Davies Gareth Davies The Exchequer Secretary

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle, including public sector workers.  These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses). The AMAP rates are not mandatory, and employers can choose to pay more or less than the AMAP rate. It is therefore ultimately up to employers to determine the rate at which they reimburse their employees, including public sector employers. In considering changes to the AMAP/simplified motoring expenses rates, the Government has to balance support for individuals with the responsible management of public finances, which fund our essential public services.

However, the Government recognises that transport is a major cost for individuals and families. At Spring Statement 2022 the Government announced a temporary 12-month cut to duty on petrol and diesel of 5p per litre. In order to continue supporting all motorists, it will extend the 5p fuel duty cut, which is worth £100 to the average driver over the next year.

Like all taxes and allowances, the Government keeps the AMAP rate under review, and any changes will be announced at a future fiscal event.

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