Fight for your right to increased mileage rate at work

Social workers are being urged to apply pressure on local authority employers to ensure they receive the new non-taxable mileage rate of 55p announced in May by Chancellor Rachel Reeves.

BASW has hailed the increase from 45p a mile - which comes at a time of increased petrol prices caused by the US war with Iran -  as a campaign win.

However, the association warns responsibility lies with employers to “ensure that social workers are able to claim back the full 55p per mile” for individuals to see any benefit.

HMRC sets the tax-free maximum but employers decide on the rate of reimbursement.

BASW is writing to all local authorities in England, Wales and Scotland to urge them to increase the reimbursement rate in line with the new HMRC non-taxable mileage rate, which should also be backdated to April 2026, the start of this tax year.

Social workers can also apply pressure via their union, arguing there is now no tax reason not to increase the reimbursement rate to 55p.

PSW previously reported how both SASW and BASW Cymru have raised warnings over an “exodus from the profession” if rates were not increased.

SASW said in 2022 that staff were virtually having to pay to do their job after a 30 per cent rise in the price of petrol.

They called for an increase to 60p, and lobbied Scottish MSPs and the Chancellor to take action.

And in Wales, both Unison and the Federation of Small Businesses (FSB) warned social workers could be forced off the road in the face of sky-rocketing fuel prices.

Rising prices are particularly felt by workers who travel between appointments leading to calls for an additional fuel allowance. 

The FSB has said workers who use their own cars to travel to clients should receive a higher approved mileage rate after 10,000 miles. The new policy only applies to the first 10,000 miles and will save an average £120 for a worker doing 6,000 miles a year.

Earlier this year, BASW wrote to Rachel Reeves pointing out the mileage rate has remained unchanged since 2011 which, due to a then 58 per cent increase in inflation, means social workers are “effectively subsidising the public, by using their own cars”.

Samantha Baron said: “Social workers frequently travel significant distances to conduct home visits, attend safeguarding meetings, support vulnerable families, and respond to urgent situations. 

“These journeys often take place in rural or poorly connected areas where public transport is not a viable option.”

The standard mileage rate for NHS workers rose to 59p from June 1. Unison has recently called for social care staff to see the same increase. 

Back in 2023, it calculated NHS, social care, police and local government employees who need to drive for work were up to £6,000 a year worse off because of the old 45p rate. 

The average pump fuel price for May this year was 159p per litre for petrol and 185p for diesel in the UK. This time last year it was 132p per litre.