UK Government Introduces New Cycling Mileage Rate as Part of Savings Scheme
Rachel Reeves confirms 20p per mile cycling to work rate in new savings scheme

Image: Express
Chancellor Rachel Reeves has announced a new cycling mileage rate of 20p per mile for employees who cycle to work as part of the Great British Summer Savings Scheme. The scheme also raises the vehicle mileage reimbursement rate to 55p per mile for the first 10,000 miles, benefiting workers who use their own vehicles for work-related travel.
- 01The vehicle mileage reimbursement rate has increased from 45p to 55p per mile for the first 10,000 miles.
- 02Cyclists will continue to receive a fixed rate of 20p per mile regardless of distance traveled.
- 03Employers can reimburse mileage costs tax-free under the 'Approved Mileage Allowance Payment' scheme.
- 04Fiona Eastwood, CEO of Merlin Entertainments, praised the changes for benefiting the UK visitor economy.
- 05The VAT cut will also apply to admission tickets and children's meals at Merlin's attractions.
Advertisement
In-Article Ad
Chancellor Rachel Reeves has confirmed a new mileage rate of 20p per mile for employees who cycle to work, as part of the Great British Summer Savings Scheme. This announcement was made in the House of Commons and aims to support those commuting via bicycle. Alongside this, the reimbursement rate for employees using their own vehicles for work-related travel has been increased to 55p per mile for the first 10,000 miles in the tax year, up from the previous rate of 45p. This change is significant for workers who are required to use their vehicles for job duties, such as care workers traveling between clients. Employers can reimburse these mileage costs through the 'Approved Mileage Allowance Payment' scheme, which is exempt from tax and National Insurance. Fiona Eastwood, Chief Executive Officer of Merlin Entertainments, expressed that the changes would positively impact the UK's visitor economy, making it easier for families to enjoy summer outings. Additionally, Merlin will apply the VAT cut to admission tickets and children's meals at their attractions, enhancing the value of family experiences.
Advertisement
In-Article Ad
The new mileage rates will encourage cycling to work and support workers who travel for job purposes, potentially reducing commuting costs.
Advertisement
In-Article Ad
Reader Poll
Do you support the new cycling mileage reimbursement rate?
Connecting to poll...
Read the original article
Visit the source for the complete story.




