1. NHS MILEAGE PAYMENTS CONSULTATION 16 MARCH – 24 APRIL 2009

2. CONSULTATION MATERIAL www.nhsemployers.org/mileage Covering letter to all NHS Employers Consultation document with briefing on motoring costs and mileage allowances Questionnaire to be completed in partnership and returned

3. MILEAGE PAYMENTS Intended to reimburse car owners (not lease cars) for using their vehicle for NHS Business Covers ‘costs of motoring’: depreciation, tax, insurance, fuel etc (standing and running charges) Cost of fuel is but one element of the total cost of motoring Until the increase in rates in 2008 there had been no increase for at least 8 years No NHS Mechanism for ensuring that mileage allowances reflect the changes in the cost of motoring

4. PRESENT ARRANGEMENTS AFC Section 17 and Annex L & M Medical and Dental Terms and Conditions of Service: Pay Circular MD 5/2008 Trust/Board ‘Local Agreement’ (see Sect 17 par 17.1) HMRC Authorised Mileage Allowance Payments (AMAP)

5. AFC SECTION 17 AND ANNEX L & M MEDICAL AND DENTAL TERMS AND CONDITIONS Defines ‘Regular’ and ‘Standard User’ Payment based on size of engine Deals with changes to employment arrangements (change of base etc) 19 different rates including Cars, M/Cycles, Cycles and Public Transport Rate

6. HMRC AMAP Level of reimbursement that is considered ‘tax free’ 40p a mile for the first 10,000 miles and 25p a mile thereafter Payments above these levels are subject to tax - Payments below are available for ‘tax relief’ UK Government have confirmed that they believe that this level is a correct reimbursement

7. FUEL PRICES October 1 2004 fuel price was 89.6p Most ‘visible’ element of the cost of motoring for an individual Increase in fuel does not have the same increase in the ‘cost of motoring’ Jan 08104.3 petrol ltr Feb104 Mar106.8 Apr108.1 May112.6 June118.2

8. Fairness: allowances should reflect the cost of using vehicles for work and should be ‘felt fair’ by car users Simplicity: easy to administer Transparency: all staff and managers should be clear how rates are calculated and what the entitlements are A Partnership System: under the NHS Staff Council for regular review of allowances based on agreed measure MILEAGE PAYMENTS WORKING GROUP

9. DATA COLLECTION Working group looked at a number of Trusts in England through ESR 1600cc most common engine size 75% Standard Users and 25% Regular User

10. SUMMARY STATISTICS: ALL USERS Miles Travelled Minimum3 Maximum14,073 Average1,420 Lower Quartile252 Upper Quartile2,069

11. SUMMARY STATISTICS: STANDARD USERS Miles Travelled Minimum3 Maximum11,412 Average1,070 Lower Quartile169 Upper Quartile1,485

12. Summary Statistics: Regular User Miles Travelled Minimum3 Maximum14,073 Average2,189 Lower Quartile893 Upper Quartile3,007

13. CONSULTATION Sharing with the service where the working group has got to Seeking the view of the service (in Partnership) on possible options Checking local experience against ESR Data Collected Seeking views on transition arrangements / protection if applicable Seeking ‘new’ thoughts on other possible options Not a consultation on a new agreement!

14. WHAT DO YOU THINK? A single mileage rate for business miles travelled irrespective of engine size? A single rate but retaining a ‘lump sum’? Is there still a need to retain a Public Transport rate? Is your Trust/Board mileage picture similar to what we have got from ESR Do you have other ideas?

15. RESPONSES Information www.nhsemployers.org/mileage In partnership: unions and employers Complete questionnaire and return by April 24