Chancellor urged to take immediate action on mileage rates amid rising costs

The British Association of Social Workers (BASW) has renewed calls for urgent government action to increase the non-taxable mileage allowance rate, warning that prolonged inaction is placing mounting financial pressure on social workers across the UK.

The allowance, currently set at 45p per mile, has remained unchanged since 2011 – despite significant increases in fuel prices and broader vehicle-related costs. BASW argues that the rate has been substantially eroded by inflation and no longer reflects the true cost of work-related travel, including fuel, maintenance, insurance, and depreciation.

The issue has been consistently raised by BASW members, particularly those working in community-based roles where car use is essential. The association made reform of the mileage rate one of its key campaign priorities in the run-up to the recent General Election.

Although the Chancellor recently indicated that changes may be under consideration, no formal update has been provided. In response, BASW’s Interim Chief Executive, Sam Baron, has written to the Treasury calling for immediate clarity and implementation.

In the letter, Baron states that increasing the rate to 60p per mile would “reflect the real cost of using personal vehicles for work and provide essential support to staff who rely on their cars to deliver vital services in communities across the UK.”

“Although it is local authorities that determine how much their workers are reimbursed for their mileage, if the UK government increase the non-taxable threshold to 60p, it would be a strong signal to local authorities that their mileage rates need to increase and would leave more of that money in workers' pockets,” Ms Baron writes.

“For many public sector professionals, particularly social workers, travel is not optional and is fundamental to their role. Social workers frequently travel significant distances to conduct home visits, attend safeguarding meetings, support vulnerable families, and respond to urgent situations. These journeys often take place in rural or poorly connected areas where public transport is not a viable option.”

Speaking in Parliament last month, Rachel Reeves confirmed she was examining the issue of mileage rates set by HM Revenue and Customs, saying her department would “keep a very keen interest” in the issue. Raising the issue, the MP Oldham West, Chadderton and Royton, Jim McMahon explained that Gemma, a social worker in his constituency, travels around 400 miles a month for her job, meaning that she foots the bill “just to do her job and care for other people”.
Read more: https://www.socialworktoday.co.uk/News/chancellor-says-she-will-keep-a-close-eye-on-mileage-rates-for-public-sector-workers

The letter also highlighted growing concerns about inequity within the workforce. From June, NHS employees are expected to benefit from an increased mileage rate, raising the prospect of a widening gap between social workers employed within the NHS and those working for local authorities.

The association warns that the current situation effectively penalises social workers for carrying out their duties, particularly in rural areas where travel distances are greater and alternatives to car use are limited.

BASW has committed to keeping members informed of any response from the Treasury and indicated that further campaigning may follow if progress is not made.