Care Workers: Car Allowances

(asked on 12th July 2022) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government what plans they have, if any, to increase the mileage allowance for frontline care workers given the rising cost of fuel.


Answered by
Baroness Penn Portrait
Baroness Penn
Minister on Leave (Parliamentary Under Secretary of State)
This question was answered on 21st July 2022

The Approved Mileage Allowance Payment (AMAP) rates aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAPs.

Most domiciliary care staff are employed by private providers who decide their mileage reimbursement rate. Employers, including those of care staff, are not required to use AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.

If an employee is paid less than the approved amount, they are entitled to claim tax relief (Mileage Allowance Relief) on the shortfall. The maximum MAR claim is set to the same level as the AMAP rates.

As with all taxes and allowances, the Government keeps AMAP rates under review and any changes are considered by the Chancellor.

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