Mileage Allowances

Treasury written question – answered am ar 27 Chwefror 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

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

To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of raising the rates of travel mileage and fuel allowances; and what assessment he has made of the impact of those rates on the income of low-paid workers.

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. AMAPs are intended to create administrative simplicity and certainty by using an average rate.

As with all taxes and allowances, the Government keeps the AMAP rate under review. In considering changes to the AMAP rate, the Government has to balance the responsible management of public finances, which fund our essential public services, with support for individuals.

At Spring Budget 2023, the government announced continued support for households and businesses by maintaining the rates of fuel duty at the levels set on 23 March 2022 for an additional 12 months, by extending the temporary 5p fuel duty cut and cancelling the planned inflation increase for 2023-24. That represents a saving for all drivers this year of overall around £5bn and for the average car driver around £100.

Does this answer the above question?

Yes1 person thinks so

No2 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.