Rachel Reeves increases mileage rate for drivers using cars for work
Chancellor Rachel Reeves has announced a 10p per mile increase in tax-free mileage rates for individuals using their cars for work. This increase, backdated to April 2026, aims to provide financial relief to workers such as care providers and plumbers. Unions have expressed their support, highlighting the long-standing need for this adjustment amid rising living costs.
- ▪Rachel Reeves announced a 10p per mile increase in tax-free mileage rates for work-related driving.
- ▪The new rate will be backdated to April 2026, increasing from the previous rate of 45p.
- ▪Unions have welcomed the announcement, stating it will benefit many frontline workers facing rising living costs.
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NewsUKHome NewsRachel Reeves increases mileage rate for drivers using cars for workUnions have welcomed the announcement, with many campaigning for years for the rate to be increasedMike Taylor Thursday 21 May 2026 13:00 BSTBookmarkCommentsGo to commentsBookmark popoverRemoved from bookmarksClose popover{"translations":{"comments":"Go to comments","share":"Share","copyLink":"Copy link","bookmark":"Bookmark","removeBookmark":"Remove bookmark"},"showComments":true,"showBookmark":true,"articleId":"b2981129","articleMeta":{"url":"https://www.independent.co.uk/news/uk/home-news/10p-mileage-rate-rachel-reeves-b2981129.html","title":"Rachel Reeves increases mileage rate for drivers using cars for work"}}Reeves announces cost of living support package including summer VAT cut and suspended food…
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