Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will take steps to reflect the recent rise in fuel prices in Approved Mileage Allowance Payments for public sector workers.

The Government sets the Approved Mileage Allowance Payment (AMAP) rates to minimise administrative burdens.

AMAPs are intended to create administrative simplicity and certainty by using an average rate, which reflects vehicle running costs including fuel, depreciation, servicing, insurance, and Vehicle Excise Duty. As it is an average, the rate is necessarily more appropriate for some drivers than others.

Employers are not required to use the AMAP rates. Instead, they can agree to reimburse a different amount that better reflects their employees’ circumstances. Where payments exceed the relevant AMAP rate, there will be an Income Tax and National Insurance charge on the difference. It is therefore ultimately up to employers, including individual public sector organisations, to determine the rate at which they reimburse their employees.

Like all taxes and allowances, the Government keeps the AMAP rate under review and any changes are considered by the Chancellor.