Expenses Support for our Employees
North Lanarkshire Council · 9 June 2022
Back to Council — 9 June 2022 and its agenda
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North Lanarkshire Council Report North Lanarkshire Council Does this report require to be approved? ☒ Yes ☐ No Ref FW/JH Date 09/06/22 Expenses Support for our Employees From Fiona Whittaker, Head of People and Organisation Development E-mail Whittakerf@northlan.gov.uk Telephone 07973 728628 Executive Summary Although the current economic climate is creating cost of living challenges for all of our staff, there are particular issues now emerging for staff within some of our key frontline service areas. This is linked to the fact that under our existing service arrangements, many staff are required to use their own vehicles to deliver services in our communities, and although they are fully re-imbursed for this, the rapidly rising cost of fuel and other related service costs mean that our mileage rates may not always be sufficient to cover their actual costs. This situation is not unique to North Lanarkshire Council and has been raised by the Trade Unions at a national level with COSLA. Talks are ongoing but it is understood that any ask related to this will be included as part of the wider pay negotiations exercise which is likely to be protracted and remain unresolved for a number of months. At a local level, and over the last few months, we have been in discussions with our trade unions about what support could be offered to staff whilst pay negotiations continue. At the same time, we have undertaken a full analysis of mileage levels across our services and have sought to explore affordable ways in which we could assist those staff who are incurring high levels of milage at this time, working within our existing policy framework. Following a review of this information and further discussion with our Corporate Management Team and trade unions, we are now bringing forward for consideration a proposal which we believe will offer some welcome support to our critical frontline staff groups for a defined period of time. Recommendations It is recommended that full Council: • acknowledge the underlying intent to support staff at this time, where this is considered financially prudent and affordable • approve the proposal set out in section 2 of this report, and the associated one-off cost implications, including the related implementation of temporary adjustments in HR arrangements • note that officers will keep matters under review, and where appropriate research other options for providing staff with support, where these are affordable and appropriate.
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1. Background 1.1 Elected Members will be aware of the ongoing cost of living crisis and the significant challenges now faced by all staff, but particularly those in lower paid roles. 1.2 Fuel prices, including gas, diesel and petrol are now at a record high, and this coupled with energy bills increasing by around 50% this year, with a further hike expected in October, is set to potentially put a large number of people, including those employed by North Lanarkshire Council in significant financial hardship. 1.3 Whilst the Council has little control over these wider economic challenges and is bound by single status job evaluation and national pay awards in terms of staff remuneration, there are some policy elements we do control locally that could be used to assist with increasing bills at this time. 1.4 In particular, where our employees are using their own cars for work activity, it would seem reasonable that we consider ways in which we can support them with rising fuel prices and other associated costs, and this paper makes an affordable proposal on how we may be able to do that at this time. 1.5 Figure 1 below shows the top ten job roles that claimed mileage expenses in years 2021/22. Figure 1 2021/22 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 Total Miles 2021/22 Total Miles The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (23) Build a workforce for the future capable of delivering on our priorities and shared ambition
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1.6 It is notable that whilst the year 21/22 was during the COVID-19 pandemic, comparison with previous years shows that there has been little change in both the mileage claimed, and the top ten roles claiming. This is due to the frontline nature of these roles with 81% of all mileage claimed being accounted for roles which are supporting frontline service delivery. 1.7 Council will also note that in terms of overall miles, the most are travelled by our Home Support Workers, with almost 600 staff in this workforce grouping regularly travelling an average of 2180 miles per year and some undertaking more than this. 1.8 Under our existing local HR policy arrangements, roles within the Council which regularly involve a high level of milage are awarded the payment of an annual Designated User Allowance (DUA) of £314.34 which is intended to cover the costs of servicing and other wear and tear on a user’s vehicle. This payment is index linked to the annual percentage pay award agreed for Local Government employees. 1.9 The DUA is paid on a retrospective annual basis, for all employees who travel more than 2500 miles within that calendar year. This is in addition to the current milage rate of 45p per mile which is reimbursed on an ongoing basis, and via our expenses policy, to all employees who incur business mileage irrespective of their annual mileage rate. 1.10 The mileage rate of 45p is based on the current recommend HMRC rate, for business travel up to 10,000 miles per year, which is amended in line with the rate set by the UK Treasury in its budget each year. This rate is in line with the rate paid by all other Local Authorities in Scotland. 1.11 This rate was updated on 6th April 2022 by HMRC and they have further confirmed that they do not intend to increase this rate in the tax year ahead. 1.12 It should be noted that were the Council to increase this 45p base rate, this would attract an increase in employee and employer National Insurance Contributions and be classed as a benefit in kind, which would be subject to tax deduction. 2. Report Mileage claims 2.1 Table 1 below shows that there are currently 381 employees (highlighted in grey) being paid Designated User Allowance (DUA) at a cost of £119,763.54 to the council, with the majority of these falling within Adult Health and Social Care. 2.2 Of the total figure of 1662 employees who currently claim milage across the Council, 1281 employees currently fall under the 2,500 miles DUA threshold and therefore do not qualify for the additional payment and are reimbursed at 45p per mile only.
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Table 1 Banding Adult Health & Social Care Chief Executive's Office Education & Families Enterprise & Communities Grand Total 0 - 999 288 43 219 284 834 1000 - 1500 86 6 46 48 186 1500 - 1999 90 1 17 30 138 2000 - 2499 85 1 17 20 123 2500 - 2999 61 1 12 19 93 3000 - 3499 52 7 12 71 3500 - 3999 35 2 11 48 4000 - 4499 23 16 13 52 4500 - 4999 17 3 11 31 5000+ 28 10 48 86 DUA Total (highlighted in grey) 216 1 50 114 381 Overall Total 765 52 349 496 1662 2.3 This presents an opportunity for us to consider whether it would be affordable at this time to reduce the qualifying milage rate for DUA, in particular considering the 2000 - 2499 banding, which would bring a further 123 employees into scope for the payment, the majority of whom (85) are within our Adult Health & Social Care service where we are seeing the most significant impact on our staff. 2.4 In particular, the Homecare service have reported that both existing and new Homecare Workers are struggling with fuel costs relating to their job, and that this is affecting both morale and retention amongst this critical service group. This issue has also been directly raised with us by the trade unions. Proposal 2.5 Set out below is our proposal to mitigate the impact of staff travelling for business in the current economic climate. Due to the likely fluctuating nature of these issues, and to ensure that we avoid a recurring revenue burden on the Council, this proposal is intended to be in place for a 12-month period only, and then subject to review. 2.6 Given that dropping the DUA qualification rate to 2000 would bring into scope the remainder of our Homecare Workers, its is proposed that this be set as the new DUA threshold for a period of 12 months. 2.7 As the basis of the DUA payment is to cover wear and tear on the user’s vehicle, it is also proposed that this payment is increased by 50% from £314.34 per year to £471.51, again for a period of 12 months to provide further support to high mileage users.
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2.8 This proposal would increase the number of employees qualifying for DUA by 123 to 504 and would bring additional overall costs based on an improved yearly rate DUA of £471.51. The full cost increase to the Council is set out in table 2 below. Table 2 Proposal to increase DUA x 1.5 (£471.51) and reduce mileage threshold to 2000 Mileage Employee numbers DUA X 1.5 Total Cost Increase from Current Cost Current 2,500 381 £179,645.31 £59,881.77 Drop to 2,000 504 (plus 123) £237,641.04 £57,995.73 Total Additional Cost £117,877.50 2.9 It should be noted that in addition to the increased cost of £117,877.50 outlined above, the increased DUA will attract a small amount of additional NI employer cost, and Figure 3 below shows the difference in employer cost which is around £71 per employee. Figure 3 Cost per employee based on 2,000 miles Current rate @ 45p per mile Current rate of 45p plus DUA @ £471.51 Reimbursement to Employee £900 £1,371.51 Cost to Employer £1,035.45 £1,442.47 2.10 This proposal has been fully discussed with our SJC trade union groups who are fully supportive of the approach and satisfied that it will offer a meaningful way to further support our key front-line employees at this time. 2.11 With regards to funding, and given that the majority of the additional cost will fall within the Adult Health and Social Care Service, the Chief Officer, Health & Social Care Partnership has confirmed that there will be scope within the winter business case to cover additional costs over the next 12 months. Next Steps 2.12 Assuming that the proposal outlined above and the associated costs to the Council over a 12 month period are deemed affordable, and approved, the proposal will be taken forward by relevant officers at the earliest opportunity. 2.13 In addition, following implementation, officers will keep the proposal under review, including monitoring its impact in supporting staff at this time and researching other affordable ways of supporting staff groups who may be impacted by ongoing rises in the cost of living. 2.14 The outcome of any review detailed above, or any further proposals for support will be brought to a relevant committee for Elected Member oversight and approval as required.
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3. Measures of success 3.1 Positive engagement, support, and retention of employees in our most critical services at this difficult time. 3.2 Full support from our trade unions, including a recognition that we have listened to and acted on their concerns at a local level. 3.3 Achievement of the above benefits for employees and the Council whilst minimising the impact on our recurring revenue burdens. 4. Supporting documentation Mileage & Overtime – My NL Fiona Whittaker Head of People and Organisational Development 5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Any increase in DUA or reduction in the mileage criteria would have a positive impact on the PSED and FSD. If Yes, has an assessment been carried out and published on the council’s website? Assessment carried out (see attached) will be published on the Council’s website following approval. Yes ☒ No ☐ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The proposal has been fully discussed with Financial Solutions and approved by CMT. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☒ No ☐ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Changes to HR guidance and procedures required if proposals agreed. 5.4 Legal impact
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Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒ If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☐ No ☒ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Yes ☐ No ☐ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☐ No ☒ If Yes, please provide a brief summary of the impact? 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Communication support will be required following a decision to take forward the agreed proposal. 5.9 Risk impact Is there a risk impact? Yes ☐ No ☒ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed?
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Document Text Staff Expenses Support Author Jennifer Hardy Contact details hardyj@northlan.gov.uk Owner Fiona Whittaker whittakerf@northlan.gov.uk EqIA version number 1 EqIA status Complete X Incomplete If Incomplete please say why - for instance pending further consultation / research Governance Committee Full Council Date approved 9/06/22 Review date
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Section 1. About the Policy 1.1 Name of the policy / strategy / function / procedure: Staff Expenses Support Is this a: - A new policy /strategy / function / procedure / service x Budget saving Review of policy /strategy / function / procedure Review of Service Other (please specify) Community Asset Transfer Is this is a key strategic decision subject to the Fairer Scotland Duty Yes No x 1.2 Person Responsible for the policy etc. Name: Job Title and Service / Team: Fiona Whittaker Head of People and Organisational Development 1.3 What is the scope of the assessment? Detail where appropriate Whole of the organisation x Service specific Discipline specific Other 1.4 What is the policy/ strategy/ function/ saving trying to achieve / do? Given the significant pressures that staff are under relating to rising cost of living expenses and in particular fuel costs for staff using their own car to carry out operational requirements, this change in procedure is proposed to help address this pressure. 1.5 If this is a budget saving, how will the saving be achieved? N/A Section 2. What do I know now? 2.1 Who are the stakeholders and beneficiaries? All employees currently travelling more than 2000 business miles per year will benefit. Stakeholders include our single status trade unions who are keen to ensure that we support staff at this difficult time. 2.2 What data, consultation, research and other evidence or information is available relevant to this assessment? (This is a desktop exercise)
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Consultation with trade unions has been ongoing relating to this issue. A full analysis of milage rates across the Council has been undertaken to research the viability of the proposal. 2.3 Considering the information in Section 1 and 2.1 and 2.2 2.3.1 If this policy is subject to the FSD what does it suggest about the impact or potential impact on socio-economic disadvantage? (please refer to FSD Interim Guidance) Low income Provides direct financial support to those on low income. Low wealth NA II Material deprivation NA II Area deprivation 2.3.2 Are any of the people communities listed below likely to be more affected by this policy than others? People who share one or more of the protected characteristics of the Equality Act 2010 Yes Details No Details Don’t Know Age (a particular age or range of ages) x Disabled people and people with long term health conditions x Women and men, girls and boys x People defined by their race, colour and nationality, ethnic or national origins. x Married people and civil partners x Pregnant women and new mothers (including breastfeeding mothers) x Lesbian, gay and bisexual people x People transitioning from one gender to another x People of different religions or beliefs or non-beliefs x Other groups Children and families x Homeless people x Looked after and accommodated people x Care leavers x Carers – paid / unpaid, family members x Asylum seekers x Employees – full and part time. Including SES, MAs etc. x Full time employees
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within the Adult Health & Social Care service will most benefit from this proposal. Others x 2.4 Do you have evidence or reason to believe that this policy will, or may potentially affect the Council’s duty to: (Please tick all that apply). Yes No Don’t Know 1. Eliminate unlawful discrimination, harassment and victimisation and any other conduct prohibited by the Equality Act 2010? X 2.Advance equality of opportunity between people who share a relevant protected characteristic and those who do not X 3. Foster good relations between people who share a protected characteristic and those who do not? X 4. Protect and promote human rights? X 5. Reduce socio-economic disadvantage x Please provide details. The council is offsetting the impact of rising fuel costs on low paid employees who are required to use their own vehicles to deliver our services. Section 3. What else do I need to know /find out? 3.1 Further consultation – Please use the table directly below to say who you will consult with (tick Yes or No). Consider those groups from section 2.3 where you ticked yes or don’t know. Once consultation has taken place provide the details below. People and communities Yes No Describe what you did, with whom and when. Please provide a brief summary of the responses gained and links to relevant documents, as well as any actions Age (a particular age or range of ages) Disabled people and people with long term health conditions Women and men, girls and boys People defined by their race, colour and nationality, ethnic or national origins. Married people and civil partners
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Pregnant women and new mothers Lesbian, gay and bisexual people People transitioning from one gender to another People of different religions or beliefs or non-beliefs Other groups Children and families Homeless people Looked after and accommodated people Care leavers Carers – paid / unpaid, family members Asylum Seekers Trade Unions x Ongoing discussions with trade unions will continue to assess the effectiveness of this proposal in supporting our frontline staff. Employee Equality Forum Others x All employees 3.2 What additional research or data is required? None. 3.3 What does the additional research and data tell you about potential or known effects?
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Section 4. Assessing the impact and strengthening the policy Considering all the evidence you now have from section 1-3, how will the policy affect different people and communities in relation to equality, socio-economic disadvantage and human rights? 4.1 How does/will the policy and resulting activity affect those with the characteristics listed below (including employees)? Please use the table below to provide details. Detail any Positive impact Detail any adverse impact If adverse how can we mitigate this? Where no mitigating action is planned please say why not Age (a particular age or range of ages) Disabled people and people with long term health conditions Women and men, girls and boys People defined by their race, colour and nationality, ethnic or national origins. Married people and civil partners Pregnant women and new mothers Lesbian, gay and bisexual people People transitioning from one gender to another People of different religions or beliefs or non-beliefs Other groups Children and families Homeless people Looked after and accommodated people Care leavers Carers – paid / unpaid, family members Asylum Seekers
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Employees – full and part time. Including SES, MAs etc. For high mileage employees not currently included within the scope of the DUA policy there will be a significant positive benefit in terms of support for rising fuel costs. Others 4.2 What measures could be taken to strengthen the policy / strategy to help advance equality of opportunity, foster good relations, promote human rights and reduce socio-economic disadvantage. A review of effectiveness of the proposal directly with affected employees and through trade unions. 4.3 Considering questions 4.1 and 4.2 what actions / measures will be put in place before introducing this policy please provide details. Action Timescales Responsible Officer Review details (include timescales) Review the effectiveness of the proposal in providing support for fuel costs. When it has been in place for 6 months. J Hardy Feedback will be sought from employees and trade unions as to the extent of support the proposal has provided. Section 5. Monitoring, evaluating and reviewing 5.1. How will you monitor the impact and effectiveness of the new policy? Direct feedback from staff and trade unions. Section 6. Making a decision and sign-off Recommendation Tick Comment (where applicable, please give more information e.g. where to pilot, what modifications, etc.) Timescales
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Introduce the policy x Adjust the policy then introduce Introduce the policy with justification regarding potential adverse impact Stop and withdraw the policy Name of Policy Head of Service /Senior Manager sign-off: Name Job title and division/ team Date Signature Fiona Whittaker Head of People and OD 30/05/22 For further information please contact: Name: Jennifer Hardy Job title: ESC Manager Service: People and OD Contact details: hardyj@northlan.gov.uk