1. Cheshire East Council Car Allowances Unison Member’s Meeting Tuesday 5th September 2017

2. Car Mileage Background to Consultation
Cheshire East Council started Car Allowance consultation with the Joint Trade Unions on 22nd September 2010.
Cheshire East Council stated that they had a number of requirements for an affordable single set of harmonised terms and conditions.
Collective Agreement was formally reached on a set of Revised Terms and Conditions in October 2011.
Cheshire East Council requested further meetings with Regional Trade Union Officials in both July 2012 and July 2014 to reopen Car Allowances negotiations, as they wanted to make further savings
Decision taken at Informal Cabinet on 9th December 2016, tasking the Portfolio Holder to reopen negotiations on reducing car mileage costs by £100,000

3. Car Mileage Consultation
Cheshire East Council requested a meeting with Regional Trade Union Officials on 21st April to reopen Car Allowances negotiations
Impact of any potential changes
343 Designated Regular Users (221 after Harmonisation)
125 Salary Sacrifice – New Scheme Users
3,089 Occasional Users
2.6 million miles covered each year
Potential Savings – Two Options put forward by management
Flat Rate (45p rate) = £ 181,820
NJC (46.9p rate) = £ 111,317

4. National NJC Green Book Part 2 Key National Provisions
12.1 Where an employing authority authorises an employee to use a private car on official business, the employee will receive an allowance in accordance with the provision set out in Part 3 Section 6.
Details of the current mileage agreement

5. National NJC Green Book Part 3 Key National Provisions
6.1 Employees required to use their motor vehicles for the efficient performance of their duties will receive allowances for the use of their motor vehicles on business only after being so authorised by the local authority. The local authority may determine whether the use is casual or essential and the cubic capacity of car considered appropriate.
6.2 Essential users are those whose duties are of such a nature that it is essential for them to have a motor car at their disposal whenever required. If the employee uses a private car in carrying out those official duties then they shall be entitled to receive the lump sum allowance and mileage rates set out below.
6.3 Where a car is not in use as a result of either a mechanical defect or the absence of the employee through illness;
(i) The lump sum payments should be paid for the remainder of the month in which the car first went out of use, and for a further three months thereafter. For the following three months, payment should be made at the rate of 50% of the lump sum payment.
(ii) During the period when a car is off the road for repairs, reimbursement in respect of travel by other forms of transport should be made by the employing authority.

6. National NJC Green Book Part 3 Key National Provisions
6.4 Casual users are those for whom it is desirable that a car should be available when required. The mileage rates are set out below.
6.5 Local authorities should not make it a condition of employment that employees graded below point 13 should provide motor cars for official use.
6.6 An authorised car user may apply to the authority for financial assistance to purchase a car.
6.7 The allowances are contained on the card inside the back cover and will be reviewed by the NJC each year to take effect from 1 April or during the year as necessary.

7. Car Mileage Allowances
Original Car Mileage Proposal
Removal of the NJC Car Mileage Agreement for all Cheshire East employees
Introduction of flat mileage rate of 45p per mile up to 10,000 miles and 25p per mile above 10,000 miles.
Revised Car Mileage Proposal
All Car Mileage to be paid in line with National Joint Council Agreement
Essential / Regular Lump Sum Rate applied at NJC Level 1 – £ 846 per year (currently paid up to £963) , a reduction of £ 117 per year
Essential / Regular Mileage Rate applied at NJC Level 1 – 36.9p per mile for mileage up to 8,500 miles per year and then 13.7p above 8,500 miles per year (currently paid 40.9p per mile), a reduction of 4p per mile
Casual Car Mileage Rate applied at NJC Level 1 – 46.9p for mileage up to 8,500 miles per year and then 13.7p above 8,500 miles per year ((currently paid up to 52.2p per mile), a reduction of 5.3p per mile

8. Revised Car Mileage Rates
451 – 999cc – 1199cc
Essential Users
Lump sum per annum £846  £963
Per mile first 8, p 40.9p
Per mile after 8, p 14.4p
Casual Users
Per mile first 8, p 52.2p
Per mile after 8, p p