CTA leads AMAP calls ahead of UK Budget

Policy / Research
, United Kingdom

By David Kelly, Head of Policy & Campaigns

John Healey will deliver his first Budget as Chancellor on Wednesday 28 October. The decisions he makes could have a significant impact on the Community Transport movement.

One of the key measures we’d like to see is for May's uplift to mileage allowance rates to now be fully funded for all voluntary sector organisations.

May’s uplift: A crucial first step

Healey’s predecessor increased the tax-free Approved Mileage Allowance Payment (AMAP) for cars and vans from 45p to 55p per mile for the first 10,000 miles, securing the key ask of our coalition’s long-standing campaign.

This was a crucial victory for volunteer drivers in Community Transport and beyond, many of whom were being left out of pocket by an outdated AMAP rate which had failed to keep pace with ever-higher fuel prices.

However, many of our members simply cannot afford to implement the new AMAP rate. Others could not even afford the previous rate of 45p per mile due to poor contract and grant conditions or more general financial barriers.

Why funding needs to follow the new rate

Voluntary organisations’ budgets, contracts and grant awards for 2026/27 were, of course, widely finalised before the end of the financial year and the announcement of the uplift. Many organisations are now locked into longer-term contracts with no inflationary uplifts or review of actual delivery costs.

As a result, volunteer drivers up and down the country who go the extra mile for their neighbours continue to be left out of pocket. As a coalition, we therefore felt it was necessary to write to the Chancellor ahead of the UK Budget to urge him to take action.

A call for action from the voluntary sector

We’re pleased that our letter (which you can download here) has been signed and supported by friends and allies at:

  • The National Association for Voluntary and Community Action (NAVCA)
  • The Scottish Council for Voluntary Organisations (SCVO) (who have also included the ask in their own Autumn Budget briefing)
  • The Royal Voluntary Service
  • Volunteer Now
  • Volunteer Scotland
  • The Good Neighbours Network
  • The Council for Social Responsibility
  • Communities 1st
  • The Scottish Volunteering Forum

Together, we’re urging the Chancellor to ensure that his Autumn Budget gives local charities and community groups the resources they need to implement the new AMAP rate and deliver a fair deal for all volunteer drivers.

What could the Government do?

We make a couple of suggestions about how this could be achieved – either directly via a new nationally administered funding mechanism; or indirectly via existing funding streams managed by the devolved administrations, departments, agencies and public bodies.

The latter would require all of the public sector having the resources they need to fully fund the new AMAP rate and being directed by HM Treasury to pass this on to the voluntary organisations they contract or support as soon as possible.

Going forward, regardless of what the Chancellor does on 28 October, all central, devolved and local government contracts and grants should reflect the new AMAP rate. We believe this is a matter of fairness and respect. It would be unacceptable for the state to fail to cover the full costs of implementation by its voluntary sector partners.

You can find out more here about our campaign for A Fair Deal for Volunteers. 

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