Feb 15 • 11:34 UTC 🇬🇧 UK Mirror

Labour must fix outdated HMRC rate hitting low-paid frontline workers, MP demands

Labour MP Jim McMahon is urging the government to increase the HMRC mileage payment rate for low-paid frontline workers, highlighting that the current rate hasn't been updated since 2011.

Labour MP Jim McMahon has criticized the government for not updating the HMRC mileage payment rate that affects low-paid frontline workers, particularly those in care roles. Currently, workers are reimbursed at a rate of 45p per mile, which has remained unchanged since 2011, causing financial strain on those who rely on their vehicles for work. McMahon argues that the rising cost of living has significantly outpaced this reimbursement rate, making it unviable for workers to cover their expenses adequately.

In his article for The Mirror, McMahon points out that essential costs such as food, energy, and transportation have all seen dramatic increases, yet the mileage rate has stagnated. This situation leaves many workers, including employees and the self-employed, in a difficult position where they must bear the brunt of higher operational costs without appropriate government support. The call for action is not just a financial issue; it reflects a broader concern for the welfare of frontline workers who are instrumental in supporting communities.

The implications of maintaining outdated reimbursement rates are significant, as it affects the morale and financial stability of workers in essential roles. If the government fails to address the issue promptly, it risks further alienating a demographic that is crucial to public service, especially as costs continue to climb. McMahon's appeal for urgent reform highlights the need for policymakers to reassess and act on the needs of the workforce as living expenses continue to rise.

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