New mileage reimbursement arrangements for doctors and dentists
Action required
From 1 June, employers are asked to adopt the amended TCS and apply the revised Schedule 12 provisions.
The NHS Staff Council has confirmed a new mechanism for calculating mileage reimbursement for eligible NHS employees who use their personal vehicle for work. This updated method replaces the previous approach and is intended to reflect the full costs of running a vehicle, rather than focusing solely on fuel prices.
For doctors and dentists employed under the 2016 Terms and Conditions of Service (TCS), mileage arrangements continue to be largely aligned with those set out in the NHS Terms and Conditions of Service for Agenda for Change staff.
We have updated version 14 of the 2016 TCS to include revisions to Schedule 12, bringing these provisions in line with the Agenda for Change TCS.
Key changes to mileage reimbursement
The amendments to Schedule 12 introduce several important updates:
New calculation method
Mileage rates will no longer be based on AA motoring cost guides. Instead, they will use the approved mileage allowance payment (AMAP) rates, adjusted using the retrospective Consumer Price Index (CPI) rate for the operation of personal transport equipment.
Twice-yearly reviews
The NHS Staff Council will continue to review the standard reimbursement rate twice a year:
- May review using April's Office for National Statistics (ONS) CPI data.
- October review using September's ONS CPI data.
Additional employer guidance
- Access information on the new mechanism for calculating Agenda for Change mileage reimbursement.
- Access the pay and conditions circular (M&D) 2-2026.
