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Letter from John Cooke - 23 May 05

Devon County Council
Heather Barnes
Director of Personnel & Performance

John Cooke
Head of Employee Relations
County Hall
Topsham Road
Devon
Exeter EX2 4QU

Date: 23 May 2005 Phone: 01392 383643 e-mail: john.cooke@devon.gov.uk
My ref: Please ask for: John Cooke Fax: 01392 382959

Moira Andrews
UNISON Devon County Branch
Matford Offices
County Hall
Topsham Road
Exeter
EX2 4QW

Without Prejudice

Dear Moira

Staff Travel Arrangements - Mileage Allowances

In February 2003 a draft discussion document on the Review of Staff Travel was tabled at the Single Status Meeting. The document looked at the reasons for the need to review staff travel and made proposals for moving to a more equitable and fair re-imbursement to all staff for business travel.

Negotiations opened but have been on hold for sometime. During the intervening time the mileage rates have been frozen at the 2003/2004 levels, until such time as agreement is reached. Recent discussions have indicated that negotiations can now recommence and I write to set out proposals for the way in which we can move forward together to ensure a fairer recompense to all staff who use their own cars to fulfil their duties on behalf of Devon County Council.

As I confirmed to you in October 2003 the Corporate Management Board (CMB) made the following decisions:

  1. Further to the CMB's earlier decision to put a ceiling on mileage allowances in line with Inland Revenue rates, the Board have agreed in principle to phase-out the Essential User Car Allowance Scheme, replacing it with the Inland Revenue Tax Free Rates (IRTFR).

  2. The Board have also agreed to move Domiciliary Care workers to the IRTFR in line with the phasing-out of the Essential User Scheme.

  3. In adopting these policy decisions it is fully acknowledged that IRTFRwill replace the current National Joint Council Agreement.

More recently the Employers Organisation, in its proposals for review of Part 2 of the Green Book, has put forward the following for discussion:

'We therefore propose that the current rates be replaced by a single rate for all users, which would be set initially at the maximum tax-free level approved by the Inland Revenue.'

To achieve the move from the current position to that agreed by CMB it is recognised that there will be 'winners' and 'losers'. Phasing arrangements were proposed to minimise the impact on those likely to be 'losers' whilst moving towards the IRTFR for Domiciliary Care workers who are the main group of workers disadvantaged by the current system.

In October 2003 I also indicated that certain 'Policy Principles' will apply to the phasing arrangements and reiterate them below with appropriate changes in time scales.

  1. To phase out the essential user rate by providing a period of protection dependent on the current annual mileage and the consequent monetary effect on the individual.

  2. To move Domiciliary Care workers to the IRTFR in a similar phasing process and over a similar period.

  3. To conduct a thorough review of existing low mileage essential users with the intention of moving those employees with annual business mileage of 1500 or less to the IRTFR by 1st July 2005. (Note that this review is entirely compliant with the existing agreement for essential users.)

  4. That from the date of any agreement all newly appointed employees, whether new to the Authority or an existing employee taking up a new position, will be paid the IRTFR for any business mileage.

  5. That all casual users currently paid at the casual user rate will move to the IRTFR as at 1 Apr 2005.

In addition and in recognition that the mileage rates payable have been frozen for more than 12 months the Authority is prepared to consider a one off payment to all staff who have incurred business travel during that the financial year 2004/2005. This payment to be equivalent to the difference between the mileage rate paid during the financial year 2004/2005 and the increases that would have been due, had the rates not been frozen, in line with NJC rates as applied by DCC for that period. This payment can also be extended to include any business mileage undertaken in 2004 / 05 deemed as 'out of County'.

Note that this payment is conditional on agreement being reached on movement to IRTFR for all staff from 1 Apr 2005.

I look forward to meeting with you as soon as possible to recommence negotiations on the points set out in this letter so that we can achieve together a fair and equitable payment to all staff for business travel. Meanwhile if you have any questions regarding this letter please do not hesitate to contact me.

Yours sincerely

John Cooke
Head of Employee Relations