Travel Costs in Health and Social Care

Do domiciliary care companies have to pay expenses? Legally, employers are not universally mandated to reimburse employees for travel expenses incurred during work. However, if the lack of reimbursement causes an employee’s earnings to fall below the National Minimum Wage (NMW), the employer may violate wage regulations. This is particularly significant in the care sector, where travel between people’s homes is a routine part of the job.  

According to the Low Incomes Tax Reform Group, many domiciliary care workers are not compensated for their travel time or associated costs. This lack of compensation can lead to earnings that effectively dip below the NMW when travel time and expenses are factored in. Employers must ensure that the total pay, including time spent travelling between care recipients, meets or exceeds the National Minimum Wage to remain compliant with employment laws.  

The issue of home care paid travel time is critical. The NMW regulations require that time spent travelling between care recipients counts as working time and should be compensated accordingly. Despite this, a significant number of care workers are not paid for this travel time.  

A survey conducted by UNISON, the UK’s largest trade union, showed that 75% of home care staff are not compensated for the time it takes for them to travel between appointments, which not only affects their income but also raises legal and ethical concerns.  

To resolve this, employers should implement clear policies and procedures to ensure that care workers are paid for all working time, including travel between care recipients. This approach not only aligns with legal requirements but also promotes fairness and job satisfaction among staff.  

When discussing care worker travel expenses, it’s important to distinguish between travel time compensation and reimbursement for travel costs such as fuel, vehicle maintenance or public transportation fares. Employers may choose to reimburse these expenses, but policies vary across different organisations.  

For tax purposes, care workers using their own vehicles for work-related travel can claim Mileage Allowance Relief (MAR). The approved rates are 45p per mile for the first 10,000 miles and 25p per mile thereafter. If an employer provides a mileage allowance between these rates, employers can claim tax relief on the difference. For instance, if an employer pays 20p per mile, the employee can claim tax relief on the remaining 25p per mile for the first 10,000 miles.  

Care workers need to maintain accurate records of their mileage and any reimbursements received to facilitate tax relief claims. Employers can support their staff by guiding record-keeping and the process for claiming MAR.  

The current HMRC mileage rates have remained unchanged since 2011 despite significant increases in fuel and vehicle maintenance costs. This inactivity has led to situations where care workers are effectively subsidising work-related travel from their own pockets. The Association of Taxation Technicians has highlighted the issue, noting that employees, particularly those in lower-wage roles like care work, are unreasonably affected by outdated mileage rates.  

Employers should be aware of these challenges and consider reviewing their reimbursement policies to better reflect the actual costs incurred by care workers. This may involve offering higher mileage rates or providing additional support to offset travel expenses.  

Efficient rostering can significantly reduce travel time and associated costs for care workers. By strategically scheduling care recipient visits, employers can minimise the distance travelled between appointments, thereby reducing both time and expenses.  

Access Care Rostering, part of our integrated care management suite at Access, works alongside Access People Planner to deliver a streamlined approach to staff scheduling. Designed to simplify complex rostering tasks, the platform helps to ensure that care workers spend less time travelling and more time delivering high-quality, person-centred care.  

o effectively manage travel costs and support care workers, health and social care employers should consider the following best practices:  

The Market Overview 2024 from the Homecare Association offers a comprehensive analysis of the UK homecare sector, providing critical insights into workforce size, care delivery trends and regional variations. This essential report highlights key data such as the number of people receiving care, total hours delivered and trends in homecare workforce composition.  

Overall, it serves as a vital resource for homecare providers, commisioners and stakeholders seeking a deeper understanding of the sector’s current dynamics and challenges. Additionally, the Homecare Association’s ongoing research includes the Workforce Survey 2024 and various reports covering the Minimum Price for Homecare 2025-2026 throughout the UK, which further inform strategic decision-making within the industry.

Effectively managing travel costs in the health and social care sector is essential for both operational efficiency and the well-being of care workers. By compensating for travel time, reimbursing expenses and implementing efficient rostering solutions, employers can create a fair and supportive work environment while ensuring compliance with wage regulations.  

One of the most effective ways to manage these challenges is through the use of intelligent workforce management solutions like Access Care Rostering. 

Access Care Rostering can be used to manage travel costs by accurately calculating travel time between care recipient visits, ensuring fair compensation for care workers. The software optimises routes using Google Maps, reducing unnecessary travel and associated expenses. People Planner also integrates with payroll and billing, streamlining reimbursements and invoicing while ensuring compliance with wage regulations.  

Unlike other software providers, The Access Group offers an integrated, user-friendly system tailored to the specific needs of the care sector. With a strong track record of supporting thousands of care services across the UK for over 30 years, we at Access stand out for our innovation, reliability and commitment to improving workforce management. If you would like to learn more about Access Care Rostering and available additions to this platform, please contact us today.