Mileage allowance rate raised after years of pressure from campaigners

The announcement, made last week, follows sustained lobbying from BASW and Unison, who have argued that the mileage allowance has failed to keep pace with rising fuel and vehicle costs since it was last updated in 2011.

Many social workers, particularly those in community-based and rural roles, use their own vehicles to undertake home visits, attend safeguarding meetings and support vulnerable families, often travelling significant distances each month.

Commenting on the announcement, UNISON General Secretary Andrea Egan said: “This simple measure will provide immediate help for countless frontline workers in public services. Particularly at a time when living costs are going through the roof once again.

“People who need their own cars for work have been left thousands of pounds out of pocket for far too many years.

“UNISON has campaigned hard for this long overdue change. It’s good to know the chancellor has listened to the concerns of staff penalised by frozen rates.

“There’s still more to do to ensure no one is losing out and the union will continue to campaign for more over the coming months.”

In a previous letter to the Treasury, BASW Interim Chief Executive Sam Baron warned that the unchanged rate no longer reflected “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.”

The association had called for the rate to rise to 60p per mile, but described the 10p increase as a significant step forward.

In a statement following the announcement, BASW said: “This is a victory for BASW and other organisations who have been campaigning on this issue for years.”

The organisation added that many social workers had reported experiencing hardship because of rising fuel costs and said it had “kept the pressure on the UK government on mileage rates” including writing to Chancellor Rachel Reeves last month urging her to increase the allowance.

However, BASW warned that the increase alone would not guarantee social workers benefit financially unless employers also increase reimbursement rates in line with the new HMRC threshold.

The association said: “But, it is not enough that the UK government has increased the rate - employers now need to ensure that social workers are able to claim back the full 55p per mile in order for them to feel the benefit.”

BASW confirmed it will now write to local authorities in England, Wales and Scotland urging them to increase reimbursement rates accordingly and backdate claims to April 2026 in line with HMRC policy.

The announcement marks a significant development in a long-running campaign highlighted by BASW earlier this year, when the organisation renewed calls for urgent action amid growing concern over rising travel costs and disparities between sectors.