BASW hails campaign win on mileage allowance increase

The Chancellor has announced a 10p raise in the tax free allowance

Today (21st May 2026) the Chancellor of the Exchequer has announced that the non-taxable mileage rate for those who use their vehicles for work will increase from 45p to 55p. 

This is a victory for BASW and other organisations who have been campaigning on this issue for years. 

Many social workers use their vehicles for work and have told BASW the hardship they are facing with rising fuel costs. BASW has kept the pressure on the UK government on mileage rates, and last month wrote to Rachel Reeves urging her to increase the rate. 

While BASW has been campaigning for an increase to 60p, this is still a significant step. But, it is not enough that the UK government has increased the rate - employers now need to ensure that social workers are able to claim back the full 55p per mile in order for them to feel the benefit. 

BASW will be writing to all local authorities in England, Wales, and Scotland to urge them to increase the reimbursement rate in line with the HMRC non-taxable mileage rate, and to backdate claims to April 2026 to reflect the policy of HMRC. 

BASW member smiling

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