We urge the government to take action on this issue by updating outdated millage allowance rates, to support the financial well-being of employees and businesses who rely on mileage allowances, and to ensure that the UK's workforce can continue to thrive.
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The current mileage allowance rate has remained unchanged for over a decade despite the significant increase in cost of living. This outdated rate places a financial burden on employees using their own vehicles for work purposes and fails to accurately reflect the true cost of living.
Many businesses use mileage allowance rates to reimburse employees for business travel. However, the current rate of £0.45p per mile does not cover the actual costs, leading employees to financial difficulties.