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Employees Travelling Outside the UK: Expenses Rate
14 July 2026
Lead MP
Peter Lamb
Responding Minister
Dan Tomlinson
Tags
TaxationEmployment
Word Count: 2200
Other Contributors: 1
At a Glance
Peter Lamb raised concerns about employees travelling outside the uk: expenses rate in Westminster Hall. A government minister responded.
Key Requests to Government:
I urge the Government to undertake a full review of overseas scale rates and ensure they reflect current costs, particularly in light of significant inflation over the past decade. I hope that the review will address concerns raised by employers like Virgin Atlantic regarding destinations where safety restrictions necessitate higher subsistence costs.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
I am concerned about the outdated and underfunded subsistence rates for employees travelling outside the UK. These rates, last updated significantly in 2014, fail to reflect current inflation levels and have led to significant erosion of real value over time. For example, in Amsterdam, where the rate was set at €71 in 2013, it should now be more than €96 due to inflation, but remains unchanged. In Budapest, the rates are over 40% lower than they should be due to compounded inflation of 67%. The worst example is Ankara, where the current rate is a tenth of what it should be given Turkey's average annual inflation of 22.5%. This situation leads to under-compensation for workers, particularly cabin crew and pilots who are losing out on subsistence payments.
John Milne
Lab
Horsham
I represent Horsham and experience similar problems as mentioned, with many cabin crew in my area facing issues. One individual is struggling to get leave to remain due to complications from visa applications involving travel abroad. Intervened to express support for his colleague and highlighted the need for updating the OSRs, emphasizing fairness and administrative ease.
Government Response
Dan Tomlinson
Government Response
Acknowledged the concerns raised by MPs about the outdated overseas scale rates (OSRs) system. The Government will review both OSRs and benchmark scale rates to ensure they reflect current inflation levels, considering a simplification of the system into broader bands or categories. Officials have begun engagement with businesses for input on potential changes, aiming to balance support for businesses with fairness in the tax system while maintaining administrative simplicity.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.