10 October 2023
NHS Mileage Allowance

Cars are essential to many people here in the constituency, especially health and care workers, and I will convey your comments to ministerial colleagues in the Department for Health and Social Care. I appreciate concerns relating to the impact of the Russian invasion of Ukraine on fuel prices and I know ministerial colleagues across Government are monitoring this impact closely.

In recognition of the unprecedented circumstances pushing up fuel prices and the fact that fuel represents a major cost for individuals and businesses, I welcome the Chancellor’s decision to maintain fuel duty at current levels until spring 2024, spending £5 billion on a tax cut worth £100 per driver this year.

Regarding the NHS mileage allowance rates for those on Agenda for Change contracts, it is my understanding that the NHS Staff Council reviews the rates twice per year, considering all motoring costs and the cost of fuel in April/May and November/December respectively. The trigger for a change in rates is a 20 per cent increase or decrease in motoring or fuel costs over the 12-month average prices.

From 1 January 2023, the rate of reimbursement is 59 pence per mile for vehicles that have an annual mileage up to 3,500 miles. For vehicles that have an annual mileage of over 3,500 miles, the rate of reimbursement is 24 pence per mile.