Cost-conscious councils try
using technology to stop staff from topping up mileage income.
Antonio Fabrizio reports.
Councils which fear a hike in mileage as staff seek to
compensate for cuts in pence per mile payments are turning to
mileage audit systems.
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Audit specialist TMC said it has
been contacted by council chiefs concerned that some staff may find
ways to drive extra miles in order to make up for lower
payments.
Hampshire County Council had hoped
to save £1.8m a year in mileage payments by cutting its rate from
53.8p to 40p per mile in 2010-11.
After negotiations, it settled for
a smaller cut to 47p per mile for higher-paid staff, and 53.8p for
the lowest-paid employees. It still hopes to save £900,000 a year
on car travel payments.
TMC said audits could help the
public sector to save up to £320 million a year on mileage
payments.
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By GlobalDataTMC managing director Paul Jackson
said: “We are in talks with a number of local authorities looking
for a fair, transparent and efficient system to record their
staff’s trips, to make sure travel is productive and to ensure
prompt, accurate payments.”
Jackson continued: “Councils are
rapidly becoming aware that they need a system to proactively
monitor mileage reports because there is a risk that overall
mileage claims could rise as drivers compensate for cuts in pence
per mile payments.”
Councils are looking to reduce costs and to bring mileage
allowances in line with HM Revenue & Customs recommended
rates.
