UNISON members who use their car for work have long been left out of pocket by petrol costs outstripping mileage rates, which have not changed since 2011. The so-called ‘mileage gap’ is estimated to cost public sector workers an average of £6,000 a year.
However, a newly announced government review into mileage rates brings hope. Following years of UNISON’s campaigning, the Chancellor Rachel Reeves has said she will be reviewing mileage rates ahead of the autumn budget. The government have said this will be a ‘workers-first review’.
This is a critical opportunity for UNISON to ensure the government listens to workers. If you use a car for work, please have your say in our survey. UNISON will make sure the government hears it.
UNISON has already successfully negotiated for the NHS staff council to implement a new mileage mechanism. From 1 June 2026, the standard rate will increase to 0.59p (<3,500), and the drop-down rate will increase to 0.36p (>3500 miles).
UNISON member Ed Jay, who is an apprenticeship advisor at Cornwall College, is pleased that a review is on the way. His role involves driving for site visits to check on employers and apprentices, and sometimes trips are 60 miles away.
“Out of date mileage rates mean that those of us who drive for work are subsidising our own wages. 45p per mile doesn’t cover the costs of running a car, which include servicing.”
The recent US/Israel war on Iran has added even more strain to workers. “It’s now nearly £2 a litre for fuel down here, and that’s certainly not being covered by mileage rates,” says Mr Jay.
However, hope is on the horizon now, and as someone who has played a part in UNISON’s campaigning on this issue, Mr Jay is pleased.
“It’s great they’re finally listening. I went to Parliament with UNISON a couple of years ago and spoke to MPs. I also met healthcare and social workers, who are doing a huge amount of mileage every day. They’re having to pay out in order to do their job. I thought that’s outrageous.
“It’s great the government are finally listening, and it’s great to be part of a union that has continued to campaign on this and not given up. It proves that being in the union works.”
UNISON general secretary Andrea Egan said, “This review is long overdue. Many workers have paid a heavy price for simply going about their jobs due to frozen rates.
“It’s good news the chancellor has listened and is heading in the right direction. Particularly when household bills are on the rise again.”
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