Agenda for Change mileage reimbursement rates review – November 2025
As set out in NHS Terms and Conditions of Service (TCS) Handbook, mileage reimbursement rates are reviewed twice a year. This is done in April and November and allows the latest costs of fuel to be incorporated into the calculation.
The November 2025 review has been undertaken, and the average combined fuel rate has met the five per cent threshold to trigger a change in reimbursement rates, due to significant and sustained decreases in fuel prices for the 12-month period ending in October 2025.
The below reimbursement rates will be effective from 1 January 2026:
| Rate up to 31 December 2025 | Rate from 1 January 2026 | ||
Type of vehicle or allowance | Annual mileage up to 3,500 miles | Annual mileage over 3,500 miles | Annual mileage up to 3,500 miles | Annual mileage over 3,500 miles |
Car | 59p per mile | 24p per mile | 56p per mile | 21p per mile |
Motorcycle | 30p per mile | 28p per mile | ||
Reserve rate | 30p per mile | 28p per mile | ||
These changes will apply to staff employed under Agenda for Change (AfC) terms and conditions and staff who are employed by organisations that use AfC reimbursement rates of Section 17 of the NHS TCS Handbook.
Where local partnerships of employers and trade unions have agreed alternative local arrangements, it is not the intention that this automatic review changes or replaces these mileage rates, although local partnerships may wish to incorporate reference to the new rates into their agreements.
Interaction with current mileage negotiations:
The NHS Staff Council are currently renegotiating the mechanism used to calculate the AfC mileage reimbursement rates. This is due to data not being available by the Automobile Association (AA), which has resulted in the current mechanism only reacting to fuel prices and not other costs of motoring for staff who use their own car for work.
The November 2025 bi-annual review of mileage reimbursement rates uses the existing mechanism in the current terms and conditions and this has no interaction or bearing with the ongoing negotiations.
Next steps:
Electronic Staff Record (ESR) colleagues have received the detail of these changes and have confirmed that a new rate will be updated in ESR from Thursday 1 January 2026, and a user notice will be published.
Employers should contact local expense system providers to ensure that changes will be in place for implementation on 1 January 2026.
Section 17 and Annex 12 of NHS TCS Handbook will be updated in due course to reflect the revised rates of reimbursement.
Further information:
- See the mileage allowance frequently asked questions (FAQs).
