Adjustment to Agenda for Change mileage rates

motorway sign

21 / 7 / 2014 2pm

The standard rate of reimbursement for NHS business mileage for Agenda for Change employees is changing from 54 to 56 pence per mile up to an annual business mileage of 3,500 miles. The motorcycle and reserve rates also change.

This adjustment is necessary as the AA have now published a correction to one of its numbers in its guide to car running costs 2014/15 and AfC mileage rates are calculated by reference to information in the AA’s latest general guide to car running costs.

These amended rates apply to eligible business mileage on and after 1 July 2014.

Next steps

We understand that this will be frustrating news for employers. The advice we have from ESR is that everything possible will be done to make the amended rates available in August for employers to use in processing claims for business mileage travelled in July.

Where it may not be possible to use automatic facilities on ESR for this purpose employers will need to make suitable arrangements to ensure that staff business mileage is paid at the correct rate from 1 July.

A copy of the revised Pay Circular for the 2014/15 Agenda for Change mileage allowances has been published and to help you deal with any queries from staff we have prepared some FAQs below.

We have also updated our How is mileage allowance calculated? poster to contain the new figures. 


Why have the rates changed so soon after they were published?

The rates are calculated by reference to information in the AA’s latest general guide to car running costs.  The guide is updated in May each year.  On 8 July this year, after publishing its updated guide in May, the AA published a correction to some of the data.  As some of the amended data is used to calculate NHS mileage rates these have needed to be recalculated.

When do the amended rates come into force?

The amended rates apply to all eligible business mileage on and after 1 July 2014.

Are they applied retrospectively or from the date of publication of the latest pay and conditions circular?

Claims for reimbursement made in August, for business miles travelled in July, will be paid for at the higher, amended rates.

Will the rates change again in the near future?

The next review of mileage rates, which will take account of fuel costs only, will take place in November 2014.  Any changes to rates of reimbursement resulting from it will apply to all miles travelled from the following 1, January (Section 17, paragraph 14 and Annex L).

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