Agenda for Change section 17 outlines how NHS mileage rates are calculated using the AA cost of motoring rates. As the AA are yet to publish their rates the NHS Staff Council has reached agreement on how any changes should be managed. The AA normally publishes their rates in April or May with the NHS calculations undertaken for implementation from July.
The impact of this delay is that if AfC rates are to change, the later publication date would mean there would be a period back to July 2015 whereby a reduction or increase in rates would be retrospectively applied to NHS staff. This appears to be increasingly problematical both for staff and employers. Any increase would place a burden on employers to fund back pay and any decrease risks staff having to pay back mileage already received.
The agreement reached means that the following approach will be taken:
Once the AA has published its data and new AfC rates are calculated (as per AfC 17.13 and Annex L, paragraphs 12 and 13), these new rates will only apply on a forward basis from the date of introduction e.g. September or October etc. – there would be no retrospective deduction or increase applied back to July 1 . That the application of AfC S.17 in respect of future calculations continues as normal i.e. the next calculation based on the fuel element alone takes place in November 2015 and the next calculation based on full mileage costs takes place effective from July 2016.