Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will review the Approved Mileage Allowance Payments rates in the context of increases in the cost of living and fuel prices.

The Government recognises that transport is a major cost for individuals. 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.

The Government has to balance support for individuals with the responsible management of public finances, which fund our essential public services. The AMAP rate is intended to create administrative simplicity and certainty by using an average rate. It will therefore necessarily be more appropriate for some drivers than others. It’s ultimately up to employers to choose what they reimburse.

As with all taxes, the AMAP rate is kept under review and any changes are considered and announced by the Chancellor.