Commons Sense

House of Commons · Ministers' Questions

HMRC Approved Mileage Rates

Tuesday 10 March 2026 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Jim McMahon asked the Department to ensure HMRC approved mileage rates are up to date, noting the current 45p a mile rate is not reflective of current costs.
  • The Department stated they are looking at the issue and will consider it further at a future fiscal event, mentioning steps like freezing fuel duty to help reduce costs.
  • Harriett Baldwin inquired if the Chancellor would commit to reviewing the fuel duty freeze decision at the end of the parliamentary session if petrol prices rise significantly.

Topics (select to filter)

Questions & Answers

Q1 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton
Taxation Employment
Context

The current HMRC approved mileage allowance rate has not changed since 2011, which raises concerns about its relevance given the significant increase in motoring costs over the same period.

Question

What steps her Department is taking to ensure that HMRC approved mileage rates are up to date. The 45p a mile rate, set 15 years ago, is nowhere near the true cost of running a vehicle today, which was recently assessed at 67p a mile. Gemma, a social worker for over two decades, travels around 400 miles a month for work, which means she is paying over £1,000 a year just to do her job and care for other people.

Answer from Rachel Reeves

We are looking at the issue and will consider the matter further in the usual way, as part of a future fiscal event. Through steps such as freezing fuel duty, we are taking wider action in the meantime to ensure that people pay the lowest price possible at the pump.

Partly answered

Not addressed: Did not commit to updating the rates or provide a specific timeline

How: Looking At The Issue, In The Usual Way, Part Of A Future Fiscal Event

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Q2 Jim McMahon Labour (Co-op) Oldham West, Chadderton and Royton
NHS Taxation Employment
Context

The approved mileage allowance rate has not been updated since 2011, leading to significant discrepancies with current motoring costs. Gemma, a social worker, travels 400 miles a month, incurring a substantial cost to maintain her work.

Question

The Chancellor's statement to review the issue is welcome, but can this work be expedited given the cost of living crisis? Gemma, a social worker for over two decades, travels around 400 miles a month for work, which means she is paying over £1,000 a year just to do her job and care for other people.

Answer from Rachel Reeves

We keep all taxes under review ahead of fiscal events, but this is one area that I will be keeping a very close interest in.

Partly answered

Not addressed: Did not commit to expediting the review process

How: Keep Under Review, Ahead Of Fiscal Events, Keeping A Very Close Interest

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Q3 Harriett Baldwin Con West Worcestershire
Economy Energy
Context

The Chancellor has announced a fuel duty freeze, set to expire in September. With the next fiscal event scheduled later in the year, there is concern about the impact of higher petrol prices on the cost of living.

Question

With the fuel duty freeze coming to an end in September and the next fiscal event not happening until later in the year, will the Chancellor commit to reviewing that decision at the end of this parliamentary Session if petrol prices are significantly higher than they are today?

Answer from Rachel Reeves

The price of petrol today is 8p per litre lower than if I had followed the plans that were left to me by the previous Conservative Government. From April, it will be 11p per litre lower. Oil prices today are 24% lower than they were yesterday, so things are very volatile at the moment. The most important thing we can do to address the cost of living challenges people face is to de-escalate the conflict in the middle east.

Not addressed: Did not commit to reviewing the decision

How: Price Of Petrol Today, Volatile At The Moment, De-Escalate The Conflict In The Middle East

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