Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of rates of Approved Mileage Allowance Payments, in the context of increases in the cost of fuel.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee’s expenses for business mileage in their private vehicle. These rates are also used by self-employed drivers to claim tax relief on business mileage (simplified motoring expenses). 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.

Like all taxes and allowances, the Government keeps the AMAP rate under review, and in considering changes to the AMAP/simplified motoring expenses rates, the Government has to balance support for individuals with the responsible management of public finances, which fund our essential public services. Any changes will be announced at a future fiscal event.

However, the Government recognises that transport is a major cost for individuals and families. 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, the Government extended the 5p fuel duty cut, which is worth £100 to the average driver over the year.