Written question asked by Lord Berkeley (Labour), in the House of Lords. It was answered by Lord Brabazon of Tara (Non-affiliated) on Wednesday, 6 April 2011.

House of Lords: Allowances

Question: To ask the Chairman of Committees, further to his Written Statement on 1 April (WS 124) on mileage allowances, what is the justification for increasing the allowance for car travel under 10,000 miles a year by 12.5 per cent.

Answer: The maximum allowance for members of the House for journeys by car, motorcycle or bicycle was set by resolution of the House on 10 November 2004. Under that resolution, the allowance is payable at the rate which is applicable to the vehicle under subsection (2) of Section 230 of the Income Tax (Earnings and Pensions) Act 2003. The allowance is accordingly directly linked to a statutory scheme administered by HM Revenue and Customs. The Chancellor of the Exchequer's Budget Statement announced that, from 6 April 2011, the maximum car mileage allowance would be increased to 45 pence per mile for the first 10,000 miles. The increase in the allowance is therefore a matter for the Chancellor of the Exchequer.

Secondary information

Type: Written question
Reference: 8453; 726 c396WA
Session: 2010-12
Related items: House of Lords: Allowances
Friday, 1 April 2011
Written statements
House of Lords
Subjects: House of Lords Peers Mileage allowances
Link: View this Written question on www.publications.parliament.uk