AMAP increase gives grey fleet drivers boost as employers reassess mileage strategy

May 28, 2026

Grey fleet drivers will receive a significant increase in mileage reimbursement rates after the Government confirmed a 10p-per-mile rise to Approved Mileage Allowance Payments (AMAPs).

The increase, announced by Chancellor Rachel Reeves, raises the tax-free rate for the first 10,000 business miles and will be backdated to April 2026.

The move ends more than a decade of frozen mileage rates and reflects growing pressure surrounding the real-world cost of using personal vehicles for work.

For fleets, the change matters beyond simple reimbursement costs.

Grey fleet operations remain one of the largest but least visible parts of the UK fleet sector, particularly across sectors such as healthcare, housing, utilities and field services. Higher AMAP rates could make employee-owned vehicles more financially viable again for some businesses at a time when company car and van operating costs remain elevated.

However, the announcement also highlights growing pressure on fleets to better manage grey fleet compliance, cost visibility and duty of care.

Industry specialists increasingly warn that businesses relying heavily on grey fleet drivers need stronger visibility over vehicle condition, insurance, licence checking and mileage reporting. If this is something you're worried about, consult Better Fleet's practical playbook on grey fleet compliance here.

The wider conversation also reflects how fleet cost management is evolving. Fuel costs, public EV charging pricing and taxation are increasingly influencing whether businesses choose grey fleet, salary sacrifice, company cars or cash allowance models for future mobility strategies.