Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her Department plans to review the Approved Mileage Allowance Payment rates for employees who use their own vehicles for work purposes, in the context of trends in the level of (a) fuel and (b) maintenance costs.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle.

The rates for cars are 45 pence per mile for the first 10,000 miles and 25 pence per mile thereafter. These rates are arrived at after considering a range of factors including:
• the costs of motoring per business mile for a range of cars and mileages;
• the transport needs of business;
• the cost to the Exchequer of changing the rate; and
• the overall fiscal position

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.