HMRC Mileage Rate History: Frozen Since 2011
Unlike the IRS in the United States or the CRA in Canada, HMRC's Approved Mileage Allowance Payments rate has not been adjusted since 6 April 2011. Drivers in 2026 are paid the same per-mile rate as drivers in 2011, in nominal pence, despite over a decade of real cost inflation.
Pre-2011: the last review
The current AMAP structure (45p first 10,000 mi, 25p after) was set in the 2011-12 tax year, replacing the older 40p / 25p structure that had been in place since 2002. The 2011 increase was a one-time bump explicitly tied to fuel-price increases through the late 2000s.
There has been no rate adjustment since. The 2002 rate held for nine years; the 2011 rate has now held for fifteen and counting.
Why the freeze matters for drivers
Petrol price inflation alone has eroded the real value of the 45p rate by roughly 10 to 15 percent depending on which year you index from. Insurance premiums for younger drivers and high-mileage drivers have risen far more sharply.
Drivers covering significant business mileage in 2026 are effectively subsidising their employers (or, if self-employed, the public purse) for vehicle costs not reflected in the AMAP rate. The political argument for a review is well-documented; the policy hasn't moved.
FAQ
Has Parliament debated raising the AMAP rate?
Yes, multiple times. Written questions and early-day motions have been tabled. The Treasury's standing position is that AMAP is a simplification rather than a precise reimbursement of cost, and that any adjustment would have a material Exchequer impact. As of 2026 there is no announced review.
Could the rate be cut?
Theoretically possible but politically very unlikely. A cut would generate strong opposition from motoring associations and millions of drivers. A freeze is the path of least political resistance, which is why it has continued.
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