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.

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.

If mileage exceeds 3500 miles, will the allowance reduce for all the 3500 miles or just the miles over 3500?

Mileage up to 3,500 business miles in a year will be paid at 56p per mile. Only the mileage above 3,500 miles in that year will be paid at 21p per mile.

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.

Where has a reduction in fuel prices been identified?

The review of the AFC mileage rate was undertaken nationally in November 2025. At that point, the average combined fuel rate had met the five per cent threshold required to trigger a change in reimbursement rates. This was due to a significant and sustained decrease in fuel prices over the 12-month period ending in October 2025.

Why is the mileage allowance dropping at 3500 miles in line with the national allowance rather than 6500?

The proposal is that DCHS adopts the national Agenda for Change (AFC) mileage allowance. Under AFC, the standard rate applies up to 3,500 miles, after which the rate reduces. Aligning with this threshold is part of the proposal to move to the national approach.

Is the triangulation method still being used?

The proposal is to adopt the Agenda for Change mileage allowance, which does not include a triangulation method. As a result, triangulation would be removed.

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.

Can you provide evidence that the costs of running a car have reduced over the last year?

Research carried out to support the NHS mileage allowance review focuses on monitoring motoring costs, inflation and, more recently, the calculation mechanism itself. Mileage rates for Agenda for Change staff are reviewed twice a year by the NHS Staff Council, which includes both employer and trade union representatives, using national motoring and fuel cost data.

Where has a reduction in fuel prices been identified?

The national review looks at UK‑wide fuel price data over a rolling 12‑month period. Over the period November 2024 to October 2025, average petrol prices were around 6.5p per litre lower and diesel around 5.7p per litre lower than in 2024, with supermarket prices typically a few pence below the UK average. This sustained reduction in fuel prices was one of the key factors that triggered the latest change in the national mileage rates.

Which area was reviewed to see if fuel prices have reduced/increased?

The national review uses UK fuel price data rather than focusing on a single local area. Over the 12‑month period ending October 2025, there was a significant and sustained decrease in petrol, diesel and electric charging costs compared with the previous year, with average petrol around 6.5p per litre lower and diesel around 5.7p per litre lower than in 2024. This pattern was seen across the UK, including supermarket prices, which typically remained a few pence below the national average.

Are there plans to review the allowance in light of the current fuel prices and workload demands?

Mileage allowances for Agenda for Change staff are reviewed automatically at national level twice a year, using an agreed mechanism that takes account of fuel prices and other motoring costs. 

How are we to maintain our cars to provide the service when further deductions in mileage will mean we have less income for repairs?

The national NHS mileage allowance is designed to reimburse staff for using their private vehicles for work. It is intended as a meaningful contribution towards both variable costs (fuel, oil, tyres, general maintenance) and fixed costs (depreciation, insurance and road fund licence), rather than covering every pound spent. The current national rates (56p per mile for the first 3,500 miles, 21p thereafter) are calculated to reflect the changing overall cost of motoring, including wear and tear, over time. The rate reduces after 3,500 miles because, under the national model, it is assumed that the majority of fixed costs and a significant proportion of wear and tear have been met within that initial mileage band.

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.

Will there be an opportunity to open up new bases to see patients/families in clinics rather than in their homes?

This feedback will be shared with the executive team to consider as part of future plans, including ongoing work around neighbourhood working and how services are delivered.

If mileage exceeds 3500 miles, will the allowance reduce for all the 3500 miles or just the miles over 3500?

Mileage up to 3,500 miles will be paid at 56p per mile. Any mileage above 3,500 miles will be paid at 21p per mile. The reduced rate only applies to the miles over 3,500, not to the full amount.

With the removal of triangulation, will there be an opportunity for employees working from home to have their base set as home?

All employees have a designated contractual base. Mileage from home to base, or the equivalent first and last journey of the day (i.e. the distance you would normally travel if going directly to base), cannot be claimed as this is classed as ordinary commuting under national rules.

Will there be an opportunity to claim mileage from home when going straight to a call rather going into base first?

No. As above, mileage equivalent to home-to-base (or base-to-home) cannot be claimed, as this is considered ordinary commuting.

Will I need to go to base first to claim mileage?

No. This would not be an efficient way of working. You can continue to travel directly from home to your first work destination. However, the equivalent home-to-base (and base-to-home) mileage will automatically be deducted from your claim when processed through EasyPay. This is standard practice nationally.

Will I only be able to claim mileage when travelling from base?

No. You will still be able to claim eligible business mileage for journeys that start from home. However, in line with national rules, if your normal home‑to‑base journey is 10 miles, the first 10 miles at the start and end of the day will be deducted from the total mileage you claim for that day.

I work mainly from home and my official base is Babington Hospital.  What will happen to my base when the new Belper clinic opens in April?

You would need to be appointed to a new base that reflects where you most frequently work, for example where team meetings are held or where you are expected to attend most regularly.

The removal of triangulation will have a big impact, can the option of a change of base to one that is closer to home be considered?

Bases will only be changed where the service itself changes base, or where an employee moves into a new role that has a different base. Base locations need to be determined by service and operational requirements, rather than proximity to home.

If the base is a nominal base, can this be changed to the closest base to home?

Bases will only be changed where the service changes base or where an employee moves to a role with a different designated base. A nominal base is still required for the purposes of employment and claiming mileage, even if the role involves working across different locations.

Will you change my base without asking me?

There are no plans to change people’s contractual base solely because of the mileage proposal. A base would only change if the service itself changes location, or if an employee moves into a different role that is based elsewhere. If a change of base were necessary, this would always be discussed with the individual beforehand.

How will outdated nominal bases be reviewed?

Where a current base is no longer a DCHS site, a new nominal base will be assigned in line with the location you use most often in the course of your work. We will work with services and staff to ensure that nominal bases remain reasonable and reflect actual working patterns as far as possible.

Currently I am unable to access the salary sacrifice lease car scheme due to my earnings.  Can this be reviewed?

Under HMRC rules, employees must not be taken below the national minimum wage as a result of entering into a salary sacrifice arrangement. This means eligibility for the lease car scheme is determined by pay levels and cannot be locally varied by DCHS.

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.

To help reduce mileage when driving around, would it be possible to share details of venues that can be used on route and how to access these for use of facilities, such as refreshments, toilets, rest breaks etc?

This is a really helpful suggestion, and we will share it with the operations leadership team. We will explore whether we can create and maintain a simple list or map of suitable venues and how best to make this information available to staff.

Will DCHS be able to provide vehicles to use whilst on duty?

Unfortunately, we are not in a position to provide pool vehicles. We trialled pool cars in the past, but uptake was low and the overall cost of providing and maintaining the vehicles made the scheme unaffordable.

Can NHS Fleet cars be considered and fuel cards for essential travel?

We previously operated a small fleet of pool cars, but this was discontinued because usage was low and the scheme became financially unviable. Given the current financial pressures, re‑introducing a fleet and fuel cards is not something we can commit to, but we will continue to keep options for supporting essential travel under review.

Could the threshold be pro rata for how many days you work acrsoss the week to make it fairer?

The national AfC mileage allowance does not allow for the 3,500‑mile threshold to be pro‑rated by working hours or days. Applying different thresholds locally for part‑time and full‑time staff would not be consistent with the national rules and could risk creating inequities between staff groups.

Derbyshire is a particularly large area with a mix of city and rural areas – whilst the mileage offer has been compared to other trusts, have they also compared the associated distances between visits?

The NHS Staff Council includes members from both acute and community organisations across a range of geographies, so that national decisions take account of different patterns of travel, including rural and urban services.