Under the new system, the rates of reimbursement will be reviewed every April/May and November/December, using information published in the AA motoring cost guides, to ensure rates move, up and down, in line with business motoring costs.
Summary of the changes to the NHS terms and conditions of service handbook, amendment number 29 - effective from 1 July 2013
- removal of the 'regular' and 'standard' user categories. Employers should refer to ESR User Notice Number UN1780
- removal of 'regular user' lump sums and all allowances linked to engine size
- standard rates of reimbursement for staff using their privately owned vehicles to make NHS business journeys
- twice yearly reviews for rates of reimbursement in line with changes in motoring costs
- updated guidance on local leased vehicle policies
These arrangements do not apply to staff within the remit of the Doctors' and Dentists' Review Body.
Very senior managers will be paid according to their local policies and contracts of employment.
Rates of reimbursement from 1 July 2013
|Type of vehicle/allowance
||Annual mileage up to 3,500 miles (standard rate)
||Annual mileage over 3.500 miles (standard rate)
||All eligible miles travelled (see paragraph 17.15 and Table 8)|
|Car (all types of fuel)
||67 pence per mile
||24 pence per mile
||33 pence per mile|
||20 pence per mile|
||5 pence per mile|
||33 pence per mile|
|Carrying heavy or bulky equipment
||3 pence per mile|
First review - November 2013
These rates of reimbursement have been checked (in November 2013) to ensure they continue to reimburse employees in line with motoring costs. This check looked at the average fuel price in the twelve month period ending in October. Changes in fuel prices since the rates were first calculated in May 2013 had an impact of minus 0.1 per cent on the standard mileage rate. Rates change if the impact on the standard rate is five per cent or greater. As the impact this time was less than five per cent, the standard and other rates of reimbursement remained unchanged.
The next review is in April/May 2014 when all the motoring costs taken into account in producing these rates of reimbursement will be included.
Find out more
The new Sections and Annexes are in the new NHS terms and conditions of service handbook (amendment number 29). See also Pay Circular (AfC) 3/2013.
In addition, we have produced some frequently asked questions.
If you are an employer and have queries about the new arrangements, please email email@example.com.
If you are an employee, please speak to your local HR team or your staff side representative.