Council car allowance facing the axe
PUBLISHED: 14:07 04 February 2009 | UPDATED: 10:54 11 August 2010
MONEY saving measures proposed to the council Executive include cutting the number of staff receiving car allowances. In order to balance the budget, Human Resource officers have reviewed the 900 council workers who receive an essential car user allowan
MONEY saving measures proposed to the council Executive include cutting the number of staff receiving car allowances.
In order to balance the budget, Human Resource officers have reviewed the 900 council workers who receive an 'essential car user allowance.'
Stripping back the amount of people who are reimbursed for money spent on petrol could save the council an estimated £300,000 by next year.
From May 1 essential car allowance will only be available to staff who carry out 'front line' or 'field-based' roles.
These are employees who deal with customers, who are contracted to drive to different locations, and who work out of various offices.
They will now receive a maximum of 36.9p per mile for the first 8,500 miles, and 13.3p there after.
Highly paid council chiefs such as the chief executive, corporate directors, heads of services, and group managers will no longer receive the allowance.
A report by HR to the Executive meeting on January 20, said that senior management posts earn enough to cover their costs of travelling across the borough.
However a new 'casual car user allowance' has been created so staff who have to use their cars for work can be compensated.
These are employees who are not contractually obliged to use their vehicles.
Casual car users will receive a maximum of 46.9p per mile for the first 8,500 miles and 13.6p thereafter.
Travelling between Barking Town Hall and Dagenham Civic Centre for meetings will not be counted.
Despite the cuts, staff who cycle to work will benefit, with an increase from 12p to 20.5p per mile.
It was suggested in the report that the council could purchase zone 4 and 5 Oyster Cards for work-related travel.
Chief Executive Rob Whiteman said: "The residents of Barking and Dagenham rightfully expect the council to tighten its belt, and ensure we are spending their council tax payments wisely.
"Like all organisations in the current economic climate, we have to find ways to balance the books."
Savings of up to £550,000 are estimated by 2010/11 which is predicted to rise to £650,000 by 2011/12.
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