Removal of the old mileage scheme (which includes the essential user allowance) - outcome
Back in May we began consulting on proposals to help streamline the mileage rates payable to all DCHS staff. That consultation has now finished, and the outcome is to bring in a standardised approach which will see all colleagues receive the same, above national benchmark rate, of 60 pence-per-mile (ppm) for the first 6,500 miles they cover for work, from 1 September.
Many people will see no difference in their mileage allowance, but for those colleagues who have been receiving the old mileage allowance, their mileage allowance will increase from 49p to 60p for every business mile claimed up to 6500 miles, although the essential user allowance will cease after 31 August.
We understand this will be disappointing for those employees who have been receiving the essential user allowance payment, but we’ve taken this approach to be fair and consistent for everyone on Agenda for Change at DCHS.
We’ve also benchmarked ourselves with other organisations and the DCHS mileage rates remain favourable in comparison with others. You’ll have heard us say before that the DCHS rate of 60 ppm remains more generous than national comparators such as the HMRC rate (45ppm) and the AFC rate (59ppm) and is consistent with our system partners. And we have ensured that our rates are over and above what is recommended by motoring organisations, the AA and RAC.
But have you heard of the mileage calculator “triangulation method”? This is a way of calculating journeys which only we offer locally, so that if an employee travels straight to a meeting or appointment from home, and the mileage for this journey is shorter than travelling from their base, they are able to claim business miles for the journey without having the mileage to base deducted. This triangulation method is over and above what any other Trust offers in the local area and means we are reimbursing our colleagues more generously than other employers in the NHS locally.
In a nutshell, both the DCHS rate of 60 ppm and the triangulation method of calculating mileage will remain in place at DCHS to offer all our colleagues the best available rates after the cessation of the old mileage scheme in September.
For more details about any of this, please check out the intranet page which covers expenses: Claim expenses : Derbyshire Community Health Services