We’re proposing a change to the mileage rates we pay in DCHS, and as such we’re starting a period of consultation with you and our staff partnership colleagues. You may already be aware that the NHS Staff Council agreed updated national mileage rates for all Agenda for Change (AFC) employees, effective from 1 January 2026. These rates apply across the NHS and are reviewed regularly to reflect changes in fuel costs. In DCHS we currently pay mileage at rates that are above that national AFC rate – and higher than 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.
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 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.
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 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.