UK Government to review mileage rates as costs hit workers

Millions of UK workers who rely on their cars for their jobs could soon see long-overdue financial relief, as HM Treasury confirms a review of approved mileage rates ahead of a future Budget.

The announcement, issued by the UK Government, comes after more than a decade without change—despite rising fuel, insurance and maintenance costs leaving many workers covering the gap themselves.

Rates unchanged since 2011

Approved mileage allowance payment rates have remained frozen since 2011, even as motoring costs have evolved significantly.

The Chancellor highlighted the issue earlier this month, recognising that workers—particularly those in lower-paid but essential roles such as home care—have increasingly been left to absorb the true cost of travel.

The planned “workers-first” review will focus on those who depend on their vehicles for their livelihoods, with the aim of ensuring they are not left out of pocket.

Government to engage with affected workers

As part of the review, the government will meet with people experiencing rising motoring costs to better understand the financial pressures they face and inform future decisions.

The move forms part of wider efforts to address cost-of-living challenges and support working households.

Fuel duty freeze remains in place

In the meantime, ministers have pointed to action already taken to keep costs down at the pump, including freezing fuel duty until September.

Exchequer Secretary to the Treasury Dan Tomlinson said:

“Millions of working people rely on their car to do their job. But mileage rates have been unchanged since 2011 and that’s increased the cost of working. A review is well overdue.

“Keeping prices down at the pump is an important way we can help people with the cost of living which is why fuel duty is already frozen.”

What it could mean locally

For workers across Northern Ireland—including those in Ballymena and surrounding areas who depend on their cars daily—the review could mark a significant shift.

From care workers travelling between homes to tradespeople and delivery drivers, any change to mileage rates could directly impact take-home pay and the real cost of doing the job.

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At a glance

• HM Treasury has confirmed a review of mileage rates

• Rates have not changed since 2011

• Millions of workers rely on mileage payments for work travel

• Rising motoring costs have left some workers out of pocket

• Review will focus on people who depend on their cars for work

• Government will engage with affected workers

• Fuel duty remains frozen until September

• Changes are expected to be considered in a future Budget