Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will publish the level of appreciation of mileage rates payments accounting for inflation for local government employees since 2010.

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

AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, servicing and depreciation. Fuel is therefore only one component. As an average, it will necessarily be more suitable for some drivers than others. This may vary across sector.

The AMAP rate is advisory and employers can choose to pay more or less than the advisory rate. It is therefore ultimately up to employers, including public sector organisations, local government and the NHS to determine the rate at which they reimburse their employees. Employees who receive less than the AMAP rate can claim tax relief on the difference. Employees who receive more may be taxed on the difference.

The reimbursement of travel costs for NHS employees is covered by the NHS Terms and Conditions, jointly agreed by employers and the NHS trade unions. In November, the NHS Staff council reviewed these terms and conditions and recommended that from 1 January 2023 reimbursement rates for cars should increase to 59ppm for the first 3,500 miles and 24ppm thereafter.

Like all taxes and allowances, the Government keeps the AMAP rate under review.