Unison and the RAC have published research showing that public sector staff are being left thousands of pounds out of pocket because mileage rates have not been updated in over ten years, despite rapidly-increasing costs of fuel and continuing low pay.   The report finds that the financial ‘mileage gap’ means public sector workers are effectively subsidising their employers for their work-related journeys.

The research found that staff who need to drive for work are up to £6,000 out of pocket due to a decade-long failure to increase mileage rates from 45p.  These workers include District Nurses and Care Workers.  During a cost-of-living crisis, which has included a period where petrol prices increased in many places to 190p a litre, it cannot be right that workers have had to absorb these costs.  The report highlights that if the rate kept up with prices, it would now sit somewhere in the region of 63.4p per mile.

I wrote to the Chancellor of the Exchequer to bring this research to his attention and to ask what the government plans to address this situation.  I have now received a response from HM Treasury, in which it states says that these rates are advisory, and that employers are free to set different rates if they wish.  You can read his full reply below.