PARLIAMENTARY DEBATE
HMRC Approved Mileage Rates - 10 March 2026 (Commons/Commons Chamber)

I am grateful to my hon. Friend for raising this important issue. While the approved mileage allowance payment rates have not changed since 2011, I recognise that motoring costs have evolved significantly, and it is an important issue for many people who claim motoring expenses. We are, therefore, looking at the issue and will consider the matter further in the usual way, as part of a future fiscal event. Through steps such as freezing fuel duty, we are taking wider action in the meantime to ensure that people pay the lowest price possible at the pump, whether or not they use the approved mileage allowance payment.

I thank the Chancellor for that response; I welcome it, and so will millions of working people. This has been a long-standing campaign for Unison, and I am grateful to it and the RAC Foundation for taking on this case and to the Mirror for the coverage it has given to the campaign. The 45p a mile rate, set 15 years ago, is nowhere near the true cost of running a vehicle today, which was recently assessed at 67p a mile—and that was before fuel costs rocketed in the last week. Gemma, a social worker for over two decades, travels around 400 miles a month for work, which means she is paying over £1,000 a year just to do her job and care for other people. Gemma and the millions of working people like her will welcome the Chancellor’s statement today, but can this work be expedited, given the cost of living crisis?

I genuinely thank my hon. Friend for all he has done to draw attention to this important issue. I am also grateful for representations from the trade union Unison, given that this particularly affects low-paid workers, including care workers like Gemma. We have a standard Treasury policy of keeping all taxes under review ahead of fiscal events, but as I say, this is one area that I will be keeping a very close interest in.

The Chancellor will review mileage rates, but with her fuel duty freeze coming to an end in September and the next fiscal event not happening until later in the year, will she commit to review that decision at the end of this parliamentary Session if petrol prices are significantly higher than they are today, for the sake of people’s cost of living?

The price of petrol today is 8p per litre lower than if I had followed the plans that were left to me by the previous Conservative Government. From April, it will be 11p per litre lower. Of course, we keep these things under review, but oil prices today are 24% lower than they were yesterday, so things are very volatile at the moment. That is why, as I said yesterday, the most important thing we can do to address the cost of living challenges people face is to de-escalate the conflict in the middle east, which is exactly what this Government are attempting to do.