Mileage consultation

We currently pay mileage at rates that go beyond the national AFC rate and those paid by most other Derbyshire NHS partners. Our current car mileage rates are:

• Up to 6,500 miles – 60p per mile
• 6,501 to 10,000 miles – 45p per mile
• Over 10,000 miles – 25p per mile.

We also currently apply a more generous approach when journeys start from home. Where someone travels directly from home to a meeting or appointment, rather than travelling from their base first, we allow the claim for whichever journey would have been shorter. This is also known as ‘triangulation’.

In response to ongoing financial pressures, we’re proposing that from 1 April 2026 we align our mileage payments with the national Agenda for Change rates. This would mean that our local DCHS arrangements would end on 31 March 2026 and the Agenda for Change mileage rates would apply to all employees where these are contractually applicable. The AFC mileage rates are:

• Car mileage up to 3,500 miles per year – 56p per mile
• Car mileage over 3,500 miles per year – 21p per mile
• Motorcycle – 28p per mile
• Passenger allowance – 5p per mile.

Agenda for Change does not include the triangulation method we currently use. Under national rules, where a journey starts from home, the claimable mileage is usually the total journey minus your normal home-to-base distance. These national rates are intended to reimburse travel costs rather than provide additional income – and they’re reviewed twice a year. The most recent review by the Staff Council reflected sustained reductions in fuel prices over the past 12 months.

We’re continually reviewing our costs across the organisation to help us remain financially sustainable and aligned with our NHS partners in Joined Up Care Derbyshire. This proposal is part of that wider work. These kinds of changes are never easy, but they’re part of how we try to address financial pressures in a measured way, so that we can reduce the need to look at more difficult options and protect services and jobs. We know that mileage payments matter to people, particularly those whose roles involve regular travel, so this is not a proposal we are bringing forward lightly. We also recognise it may be helpful to understand this in a wider system context – even at the national AFC rates, NHS mileage payments remain more generous than those paid by some system partners, such as local authority colleagues, where mileage is typically paid at a flat rate of 45p per mile.

We’re running an eight-week consultation period, and subject to consultation, any change would take effect from 1 April 2026. During the consultation, we will work with staff partnership and trade union representatives and we encourage you to share your views, questions and suggestions. Consultation is a two-way process and your feedback is important. This includes considering any practical suggestions about implementation or mitigations raised during the consultation period. You can raise or comments through your trade union or professional organisation, or via the dedicated mileage consultation inbox: dchst.mileagereview@nhs.net.

Following the consultation, we’ll carefully consider all feedback before confirming any decision. We know that any proposals about pay or allowances can be unsettling, so please speak with your line manager if you need support and remember that trade union and professional organisation representatives are available to help. Support is also available through Resolve and Occupational Health and our dedicated financial wellbeing pages. Thank you for engaging with the consultation.

We appreciate that this change may have a financial impact for some colleagues. Alongside the consultation, we will continue to focus on ways to reduce travel where possible, including:

• Supporting moves to bases closer to home through the internal transfer process as vacancies arise
• Encouraging managers to review work allocation to minimise unnecessary travel
• Continuing to use MS Teams and other virtual options for meetings and clinical appointments where appropriate
• Promoting awareness of the lease car scheme.

Please note that any mileage paid above 45p per mile will continue to be taxable.

What is the public transport rate under AFC allowances?

Under Agenda for Change (AFC), this is known as reserve rate, and is paid at 28p per mile.

Is there any evidence that the costs of running a car have reduced over the last year?

As set out in the  NHS Terms and Conditions of service Handbook, the AFC mileage reimbursement rates are reviewed twice a year, in April and November, and this allows the latest costs of fuel to be incorporated into the calculation.  In the November 2025 review, the average combined fuel rate met the 5% threshold to trigger a change in the AFC reimbursement rates, due to significant and sustained decreases in fuel proces for the 12-month period ending October 2025.

Is this allowance taxable?

Any mileage payment above the amounts approved by HMRC (45p per mile) will continue to be taxable. This has been the position for some time and would not change under the proposed move to national AFC rates.

Who will be affected by this change?

This proposal will affect all employees employed under AFC Terms and Conditions and employees for whom the DCHS mileage allowance is contractually applicable.

Do Trusts have to have AFC rates or can Trusts apply local arrangements?

Trusts can and do choose to apply local mileage arrangements, and DCHS has had a more generous local arrangement in recent years. However, continuing with rates above the national AFC rates is no longer financially sustainable for the organisation, given the current pressures. We’re proposing to align with the national AFC rates so that, going forward, we pay the same as the NHS standard for Agenda for Change staff.

Is this a proposal and under consideration/discussion/consultation and therefore can be influenced, or has it been agreed with a start date on 1/4/26?

Yes, this is a formal consultation proposal and your feedback matters. This includes any practical suggestions about implementation or potential mitigations.

What are the predicted cost savings?

Approximately £200,000 recurrently, which would contribute to the wider financial savings DCHS needs to deliver. It would help us to avoid more difficult options and continue to protect services and jobs wherever possible.

Historically, what was the reason for us to approach mileage differently to partners/AFC?

In the past, different NHS organisations and partners had quite varied terms and conditions, including different mileage rates. Our higher local rates were one of those differences. Over recent years, we’ve worked much more closely with our Joined Up Care Derbyshire partners and there’s been a growing focus on aligning where it makes sense. Many other community NHS trusts across the country have already aligned with the national Agenda for Change rates.

How realistic is the suggestion of supporting moves to bases closer to home through the internal transfer process as vacancies arise, given the vacancy controls that are in place?

We appreciate that vacancy controls can make it harder to move posts, and we know that colleagues want realistic opportunities to move closer to home. Through the internal transfer process, we already check the internal register before new vacancies are advertised, so that staff can move into like‑for‑like roles at different bases or localities where possible.

We’ll continue to support this process and will look at how we can make it work as effectively as possible within staffing constraints. We’re also open to ideas about how we could make internal moves more accessible and we’ll consider practical suggestions during the consultation.

How will encouraging managers to review work allocation to minimise unnecessary travel be managed to ensure fairness and equity?

We’ll be asking managers to think carefully about how work is planned and allocated. Where possible, this could include planning visits in a way that reduces mileage between appointments (for example, grouping visits by area or locality); or using virtual options for meetings and clinical appointments where this is appropriate and safe.

Why does the rate decrease after 3,500 miles?

This is believed to be the level at which the standing costs of running a vehicle for business purposes have been met.

Will the EasyPay system be updated?

Yes, this will be updated and will be applicable for mileage claimed from 1 April 2026 . We’ll also provide guidance on how to claim, including any changes to rules for journeys starting from home, so that the process is as straightforward as possible.