Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether her officials have had discussions with colleagues in the Northern Ireland Office on the adequacy of the Approved Mileage Allowance Payment rate of 45 pence per mile.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.

In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.

The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.

Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, the Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.