News - 5 June 2026

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Accounting News - 5 June 2026

In this week’s Enews, we look at the business response to the Milburn review. There is also a Child Benefit reminder for new parents and the latest advisory fuel rates to update you on.

Photo by Bruce Mars on Unsplash

Milburn review ‘must be a wakeup call’

Alan Milburn’s Young People and Work diagnostic report must act as a ‘wakeup call’ for the UK government, warns the British Chambers of Commerce (BCC).

The report argues that the UK faces a ‘generational fault line’ in the transition from education into work.

It sets out a comprehensive diagnosis of how systems designed to support young people — education, health, welfare and the labour market — are failing to work together.

The report makes clear that this is not a temporary problem. The NEET rate (not in education, employment or training) has remained persistently high for decades and is becoming more structural.

Today’s challenge is not just youth unemployment, but long-term detachment from the labour market, with many young people not seeking work at all.

Importantly, the Review rejects the idea that young people lack motivation, or employers don’t want to hire young people. Instead, it finds that systems have failed to adapt to a generation facing new pressures, from mental ill-health to a changing labour market.

Shevaun Haviland, Director General of the BCC said:

‘The Milburn report must be a wakeup call for policymakers about the crisis of young people not in employment, education and training.

‘Unless urgent comprehensive action is taken a whole generation is at risk of being cut loose from society, and economic growth will be hampered.

‘The report accurately diagnoses the problem, with suggested solutions to come later in the year. The issues identified in the Milburn Review have long been reported by businesses. It is important that government urgently takes steps to address these.’

Internet link: BCC website | BCC website


New parents urged to claim Child Benefit for their baby now

One in three new parents are missing out on Child Benefit payments in their baby’s first year, according to HMRC’s figures.

The tax authority is urging parents who welcomed a baby this spring to claim now via the HMRC app or online at GOV.UK.

HMRC’s data shows that while more than 6.8 million parents received Child Benefit in the year to August 2025, only 68.8% of them claimed the crucial government support before their baby’s first birthday.

It says that more than 140,000 babies were born between April and June last year and while many parents are enjoying new beginnings this spring, the latest statistics show thousands of families could be missing out on much-needed cash by delaying their claim.

Child Benefit is worth £27.05 per week - or £1,406.60 a year - for the eldest or only child and £17.90 per week - or £930.80 a year - for each additional child, with no limit as to how many children parents can claim for.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said:

‘Spring is a wonderful time to welcome a baby and claiming Child Benefit as soon as possible means your family can benefit from much-needed financial support.

‘It is quick and easy to claim Child Benefit via the HMRC app at a time that suits you.’

Internet link: HMRC press release


Advisory fuel rates for company cars

New company car advisory fuel rates have been published and took effect from 1 June 2026.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2026 are:

Engine size

Petrol

1400cc or less

14p

1401cc - 2000cc

17p

Over 2000cc

26p

Engine size

Diesel

1600cc or less

15p

1601cc - 2000cc

17p

Over 2000cc

23p

Engine size

LPG

1400cc or less

11p

1401cc - 2000cc

13p

Over 2000cc

21p

HMRC guidance states that the rates only apply when you either:

  • reimburse employees for business travel in their company cars
  • require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.

Advisory Electricity Rate

Home Charger

7p

Public Charger

15p

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR



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