Mileage Rate October 2010 - Sustainable Development Unit

Pay and Contracts
NHS Employers
2 Brewery Wharf
Kendell Street
LEEDS
LS10 1JR
Dear Colleague,
The NHS Staff Council has just published new proposals for reimbursing staff when
using their cars for work purposes. The Council sought the views of employers and
unions regarding these arrangements. The NHS Sustainable Development (SDU)
responded to the consultation by declaring a preference for option 1: a single flat
rate per mile travelled for the purpose of work.
The SDU are therefore encouraged to see that this option has been accepted by the
Council, pending approval by the unions and thank the Council for stating that it had
looked at ‘the green agenda in all of the options it had considered’.
However, if the proposals are accepted, the changes will only take effect from 1st
July 2013 which is disappointing. The NHS has set an ambition to reduce its carbon
footprint by 10% by 2015. The scale of this challenge is huge and early action to
adopt a different mileage structure is key.
This is the reason the SDU are urging NHS boards to consider further how car travel
is viewed in their organisations. By influencing travel arrangements, boards have an
opportunity to improve health and reduce carbon; the NHS SDU Carbon Reduction
Strategy states that ‘taking action now will not only reduce the risk in the long term.
Action now will also have health benefits immediately’. There are significant benefits
to the early adoption of some aspects of these proposals. For instance, this could be
done by raising the cycle rate to a minimum of 20p per mile, and reimbursing staff
who use their cars with the current ‘pubic transport rate’ when viable public
transport is available. These measures will drive down the transport spend and
promote a healthy, efficient workforce and should be implemented well before
2013.
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To summarise the proposals, there are 3 main benefits of the new system for
sustainability:
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There will no longer be a direct link between the size of engine and financial
reimbursement. The provision of any incentives to use larger size engines
presents a challenge to the future sustainability of the NHS, the removal of
which can be seen as a positive step forward.
The increase of the mileage rate paid for cycles to 20p a mile was the
minimum rate recommended by the SDU. By encouraging cycling, the NHS
promotes active and healthy lives and helps to support sustainability within
the organisation.
The revision of section 17 of the Staff Handbook, regarding the
reimbursement of transport costs states that a ‘reserve rate’ of 50% of the
normal mileage rate can be paid ‘if an employee uses his or her own vehicle
when suitable public transport is available and appropriate in the
circumstances’.
In the response to the mileage rates consultation, the SDU made it clear that in the
future a truly flat rate system across all modes of transport would provide a range of
benefits: it would encourage behavioural change in favour of healthier lives, could
improve the efficiency of the NHS, decrease congestion and it would reduce carbon
production. This would still be the SDU’s preferred system of reimbursement for
travelling costs.
Local arrangements are vital to changing behaviour within the NHS; only by finding
transport solutions that are suitable to individual geographical circumstances will we
achieve the best possible outcomes for staff and for the sustainability of the NHS.
Trust boards should consider that:
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Alternative modes of transport than the car should be actively
encouraged by individual trusts, and reflected in local travel plans.
A rise in the rate paid for cycles prior to July 2013 would provide a range
of benefits. It would encourage drivers to opt for cycling which would
provide a cost saving by reducing car mileage spend. This in turn would
support the increase for those currently cycling.
Car parking arrangements should be reviewed by trusts to ensure that
parking is available for those in need, such as disabled users, but
subsidised car parking for the most part is removed. A realistic car
parking rate is needed.
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Where individual cars are necessary, it should be investigated whether
car pools or lease cars could provide solutions; this not only allows trusts
to control costs but also enables them to select vehicles that are efficient.
Facilities are needed for staff to make sustainable transport, such as
cycling, viable.
It should be decided whether public transport is available and accessible.
If this is the case, the 50% reserve rate should be paid if staff opt for
personal car use. This would provide an additional incentive to opt for
public transport.
Where appropriate public transport is not available, Trusts need to seek
support from their local transport authorities and Strategic Health
Authorities to improve the provision of these services.
The need to travel to meetings should be scrutinised on a case by case
basis; where possible meetings should be conducted remotely via means
of tele, web or video-conference. Trusts should have specific policies
relating to this.
Flexible working and home working should be encouraged to reduce the
amount of travel required.
In conclusion, these proposals are important for setting a precedent in the NHS, that
staff will not be rewarded for using cars with larger engines. However, this is not
enough. The NHS needs to be an exemplar by leading the population wide shift from
sedentary travel to more active travel such as walking, cycling and public transport.
Individual Trusts will have to lead this drive, requiring affirmative action such as
setting incentives for low carbon transport above the rate agreed by the NHS Staff
Council and before 2013. The threat to the sustainability of the NHS is with us now
and needs to be acted on as soon as possible. Board level action taken now to
influence the way that their workforce travels, will reap great rewards for those
Trusts and the wider health system.
Whilst sustainability was not the sole driver for these measures, they are a step in
the right direction. The SDU supports a flat rate mileage system, but to reach a 10%
cut in carbon emissions by 2015 the attitude that NHS organisations take towards
transport is key. The announcement should be used as a reminder to organisations
within the NHS that the movement towards sustainable travel and communication is
in motion but requires a great deal more.
Yours Sincerely,
Sonia Roschnik,
On behalf of the NHS Sustainable Development Unit
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