New mileage allowances - from 1 July 2013


04 / 7 / 2013 1pm

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.

The new rates of reimbursement are set in line with current motoring costs which have risen since the last uprating in 2008. This means the changes are likely to have cost implications for NHS organisations.

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  
Motor cycle     33 pence per mile
Pedal cycle     20 pence per mile
Passenger allowance     5 pence per mile
Reserve rate     33 pence per mile
Carrying heavy or bulky equipment     3 pence per mile


Further information

For more information please visit our mileage allowances webpage and our FAQs on mileage allowances for employers.

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