New NHS mileage payment system to be implemented in July

Published: 06 March 2013

New arrangements come into place in July for reimbursing NHS staff for the costs incurred in using their vehicle for work. Reimbursement will move to a single rate for up to 3,500 miles and a reduced rate thereafter.

The new rate will be set in July, but if it was adopted based on current costs, the rates would be 68p and 23p. Rates will be reviewed twice a year. Based on these figures, all standard users on the public transport rate and some regular users would see an increase in payments. Some regular users will see a reduction in reimbursement. No lump sum payments will be made.

The proposals include:

• an increase in the Public Transport Rate (PTR) – to be known as the “Reserved Rate”. This will be fixed at 50 per cent of the single rate 
•  motorcycle rates to be 50 per cent of the full rate for 3,500 miles and then reduced in the same way as cars
• an increase in the pedal cycle rate to 20p a mile.

Some employers say that the overall package will increase their costs and are seeking local agreement with staff side to amend the package.

“Our advice is to resist this,” said RCN Senior Employment Relations Adviser Gerry O’Dwyer. “This needs to be looked at as a long-term package. Members wanted a system that responds to motoring costs. The key element of the new arrangement is the annual check on motoring costs and the twice yearly check on fuel costs to ensure that if costs rise, as members expect they will, the reimbursement rises. Remember, if motoring becomes cheaper, the reimbursement payment also decreases.”