Overview
- Rachel Reeves told MPs she is considering changes to Approved Mileage Allowance Payment rates after years of rising motoring costs.
- The current AMAP lets employees claim 45p per mile tax-free for the first 10,000 business miles each year and 25p thereafter, with 5p per mile for each passenger.
- Labour MP Jim McMahon and trade unions highlighted cases of workers losing money to work-related driving, citing estimates of true costs around 67p per mile.
- The RAC Foundation has warned outdated rates leave many drivers out of pocket, with one 2023 analysis putting average annual shortfalls in the thousands of pounds.
- The Government points to a temporary 5p-per-litre fuel duty cut and the Fuel Finder scheme, with most forecourts signed up and modelled savings of 1–6p per litre.