Congestion Charging update

Report: 14
Date: 24 July 2003
By: Commissioner

Summary

At the MPA Full Authority meeting on 24 April it was noted that the Human Resources Committee had considered a report about an MPS pilot scheme to reimburse congestion charge paid by some staff under certain circumstances. The pilot scheme is due to be further reviewed at the end of October and the Full Authority requested an update at its July meeting.

A. Recommendation

That the Authority notes the current position regarding the congestion charging pilot scheme.

B. Supporting information

1. With the introduction of congestion charging on 17 February 2003, concern had arisen within the MPS about its impact on staff who:

1. work shifts or other tours of duty with starting or finishing times when there is limited or no availability of public transport;
2. are authorised to use their own vehicles on police business but whose vehicles cannot be registered with Transport for London (TfL) for 100% discount because they are not official vehicles for which the MPA is shown as registered keeper; and
3. who commute by private vehicle to and from work.

2. Following discussions with the MPA Human Resources Committee, it was decided that a pilot scheme should be operated for the first six weeks after the congestion charge came into operation, whereby the MPS would reimburse the congestion charge for staff at (a) above. Staff at (b) could legitimately reclaim the cost of the congestion charge as a travelling expense (just as they could reclaim a train or bus fare incurred on business travel). The view was taken that staff at (c) decided their own mode of home to work travel and should bear the costs incurred.

3. It was made clear that shift workers included in the pilot scheme would not be able to claim reimbursement during tours of duty when they were on day shifts since public transport was available for those days. It was also made clear that reimbursement would be subject to deduction for tax and National Insurance since the Inland Revenue would deem the journey to be home to office travel with any aspect of the cost reimbursed by the employer being considered to be a taxable benefit.

4. The outturn cost of running the six-week pilot was initially assessed at £75,000. Any extension of the pilot scheme beyond the initial six weeks was not guaranteed and depended, among other things, on the funds being available to meet the costs.

5. In fact, slightly over 400 staff claimed reimbursement during the six-week pilot totalling £9,125 – an average of £1,500 or 300 charges per week. The 400 were split between police and civil staff in roughly equal proportions.

6. Local management was encouraged to make slight changes to shift patterns or adjust start and/or finish times where possible to assist staff in travelling to and from work by public transport. As a result, four units changed shift patterns so that staff could travel at more convenient times.

7. Other avenues that might assist shift workers were also explored. For instance, the trade unions suggested an interest free loan to staff to purchase motorcycles or bicycles as an alternative means of transport. We have re-considered the case for providing minibus services from strategic points at the boundaries of the congestion charging zone to main HQ buildings and police stations in the zone or for setting up an internal car pooling arrangement. These initiatives have not, however, been actively pursued in view of the comparatively low cost of reimbursement for the few staff working shifts who are affected by the change.

8. It will be noted that the 6 week outturn figure above was well below the original estimate and, following a recommendation from the MPS, the Human Resources Committee approved at its meeting on 3 April 2003 the continuation of the pilot until the end of October. The pilot scheme will continue to be monitored and will again be formally reviewed so as to be able to finally conclude whether it should continue.

9. The position at the end of June is that reimbursement to police and civil staff averages some £6,000 per month, which is consistent with the level of payments made during the initial six-week pilot.

C. Equality and diversity implications

To date, no equality or diversity issues have arisen as a result of the pilot scheme.

D. Financial implications

These have been set out in this paper. If reimbursement of the congestion charge continues at current levels, the total annual cost will be in the region of £75,000 i.e. the total annual expenditure will equate to the original forecast for the six-week pilot period. This figure is thus well below the original estimates and can be contained within local budgets for reimbursement of travel expenses.

E. Background papers

None.

F. Contact details

Report author: Michael Shurety, Director of HR Services, MPS.

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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