Rachel Reeves increases mileage rate for drivers using cars for work

May 21, 2026 · 12:00 PM UTC ·3 min read · 0 reactions · 0 comments · 34 views

TL;DR · WeSearch summary

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.

Key facts

▪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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The Independent (UK) publishes from United Kingdom and files mainly under news. We currently carry 922 of its stories.

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Record

Original publisher	The Independent
Canonical URL	https://www.independent.co.uk/news/uk/home-news/10p-mileage-rate-rachel-reeves-b2981129.html
Publication time	Thu, 21 May 2026 12:00:27 GMT
Retrieval time	2026-05-21T12:11:11.063Z
Last seen	2026-05-21T12:11:11.063Z
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Excerpt method	First ~120 words (~800 chars) of extracted publisher body, fair-use limited.
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Publisher visit	Yes — open original
Substitutes article?	No — link-out required for full text

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Opening excerpt (first ~120 words) tap to expand

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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