Travel Costs in Health and Social Care

In a home care context, travel time usually refers to the time care workers spend travelling between client visits during their working day. Examples include: 

• Travelling from one person’s home to the next for scheduled visits 
• Travelling between calls when rotas change at short notice 
• Travelling between different locations as part of a regular run or round 

Because home care is typically delivered in short visits, travel can make up a significant portion of a worker’s day. If this time is not properly recognised and paid, hourly pay can fall below the legal minimum once travel time is factored in. 

In many situations, yes, workers must be paid for travel time. UK government guidance makes clear that time spent travelling between appointments during the working day usually counts as working time for National Minimum Wage purposes. In practice, this means: 

• If a worker is paid by the hour, their total pay divided by their total working time (including travel between visits) must meet or exceed the National Minimum or Living Wage. 
• If a worker is paid per visit or by another method, the pay still needs to be high enough that, when spread across all working time (including eligible travel time), it does not drop below the National Minimum or Living Wage. 

However, not all travel is treated the same way, which we will look in to in more depth as it can cause confusion. 

Domiciliary care is built around short, frequent visits, typically 30 to 45 minutes, which means travel can account for a significant portion of a care worker's day. According to UNISON, homecare workers spend almost a fifth (19%) of their working day travelling between people's homes, a figure corroborated by Homecare Association data. 

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.   

The financial stakes are significant, as The Homecare Association's Minimum Price for Homecare in England for 2026–27 is £34.42 per hour, the amount required to pay care workers the statutory minimum wage for all working time, including travel, waiting and training, mileage, and wage-related costs, plus the minimum contribution towards running a compliant care business. Yet in 2025/26, only 0.5% of councils and Health and Social Care Trusts paid the Homecare Association's Minimum Price, against a weighted average rate of £24.39, a gap that represents an annual funding deficit of £1.98 billion in England alone. 

The workforce context makes this even more pressing. The adult social care vacancy rate fell to 6.2% in 2025/26, the lowest since 2015/16, according to Skills for Care, but vacancy rates in domiciliary care specifically remained at 9.1% in March 2026, still significantly higher than the wider economy. Unfair travel pay is a known driver of staff attrition in a sector that can ill afford it. 

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.   

UK government guidance says that time spent travelling between appointments during the working day counts as working time for National Minimum Wage (NMW) purposes. This is a legal requirement under the National Minimum Wage Regulations 2015. 

In practice, this means two things: that if a worker is paid by the hour, their total pay divided by their total working time, including travel between visits, must meet or exceed the National Living Wage (NLW) or National Minimum Wage (NMW). Also, if a worker is paid per visit or by another method, the pay still needs to be high enough that, when spread across all working time including eligible travel, it does not fall below the legal minimum. 

From 1 April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour, a 4.1% increase on the previous year's rate of £12.21.

Not all travel is treated the same way. 

The following types of travel do not generally count towards NMW working time: 

• Commuting from home to the first visit of the day - travelling from the worker's home to their first client's address. 
• Commuting from the last visit back home - travelling from the final call of the day back to the worker's own home. 
• Genuine unpaid breaks - where a worker has a period long enough to use as they wish and is not required to be available or on-call. 

However, this can become complex where breaks between calls are very short, where workers are expected to remain available or close to the next client, or where there is genuine uncertainty about whether a period constitutes a break or waiting time. Providers should always refer to the latest GOV.UK guidance on working time and NMW and seek professional advice for complex situations. 

The financial impact on workers is substantial, as a worker on the National Living Wage who works an eight-hour shift but loses a fifth of that in unpaid travel would lose roughly £83 during a five-day week, and more than £330 in a month. 

The Homecare Association warns that while Parliament has strengthened employment rights for care workers through the Employment Rights Act 2025, successive national funding decisions have failed to keep pace, and most councils and NHS bodies still pay well below the Minimum Price. 

There is no single mandated way to present travel pay on a payslip, but providers must be able to demonstrate that workers receive at least the NMW or NLW for every hour of working time, including eligible travel. A straightforward approach: 

Step 1 - Calculate total working time for the pay period. Add up all hours spent: 

• Delivering care visits
• Travelling between visits 
• Attending mandatory training or meetings 
• Completing care notes or other duties during working time 

Step 2 - Calculate total pay for the pay period. Include basic pay, travel pay, enhancements, and other earnings that count towards NMW. 

Step 3 - Check compliance. Divide total pay by total working hours. The result must be at or above the applicable NMW/NLW rate. 

Example: 

If total pay for the period is £420, the effective hourly rate is £420 ÷ 34 = £12.35/hr. 

With the NLW at £12.71 from April 2026, this example would not be compliant. 

Travel time pay and mileage reimbursement are distinct obligations. Travel time must be paid at least at NMW; mileage reimbursement covers the actual cost of using a personal vehicle, fuel, wear and tear, insurance, for work journeys. 

From 6 April 2026, HMRC increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles, the first change in over 13 years. The rate above 10,000 miles remains at 25p per mile. 

The 22% increase was announced on 21 May 2026 and applies retrospectively from the start of the 2026/27 tax year. Employers who have already reimbursed staff at 45p for journeys taken since 6 April 2026 should consider issuing a top-up payment. 

The GOV.UK mileage rates and allowances page confirms the current approved rates. 

Current AMAP Rates 2026-2027

The government has committed to a further review of these rates beyond 2026/27, to be set out at Budget 2026. 

What does this mean for care workers? 

Payments up to the approved rate are free of Income Tax and National Insurance for both employer and employee. If an employer pays less than the approved rate, the worker can claim Mileage Allowance Relief (MAR) on the difference through their Self Assessment return or Form P87. If an employer pays more, the excess is treated as taxable income. 

Care workers should maintain accurate records of all business mileage to support any MAR claim. Employers can support staff by providing clear guidance on record-keeping and the claims process. 

And why was the previous rate a problem? 

The Chancellor explicitly acknowledged that the previous 45p rate had not changed since 2011, even as motoring costs evolved significantly, with low-paid workers in vital sectors like home care picking up the tab. The increase to 55p directly addresses a long-standing inequity that disproportionately affected domiciliary care workers, who more than two thirds (71%) travel between home visits in their own vehicles. 

The Homecare Association publishes annual Minimum Price calculations for each UK nation, with figures designed to assist providers in negotiations with local authority and NHS commissioners, and are referenced in the Care and Support Statutory Guidance for England. 

The Minimum Price is the amount required to ensure the minimum legally compliant pay rate for care workers, their travel time, mileage, and wage-related on-costs, plus the minimum contribution towards the costs of running a compliant care business. 

2025–26 Minimum Prices (effective April 2025) 

2026–27 Minimum Price (effective April 2026)

The Homecare Association's updated Minimum Price for Homecare in England for 2026–27 is £34.42 per hour, incorporating the National Living Wage increase to £12.71, changes to Statutory Sick Pay effective from April 2026, and the inclusion of waiting time in the calculation. However, shorter calls are more expensive because of a higher proportion of travel time and travel reimbursement costs per hour, a consideration when designing rotas and pricing contracts. 

Home care providers can often run into problems when: 

Only paid visit time is counted 

Travel time is ignored when checking NMW and rota design, so effective hourly pay across all working time falls below the legal minimum. 

Rotas are unrealistic 

Schedules do not allow enough time to travel between visits safely, leading to increased stress, rushed care and unpaid “extra” minutes. 

Travel time is paid at a different rate but not monitored 

Some providers pay a lower rate for travel, or only pay for part of the journey, without checking that total pay across all working time still meets NMW. 

Record‑keeping is incomplete

If accurate records of travel, visit times and breaks are not kept, it becomes difficult to demonstrate compliance during an HMRC investigation. 

Providers using integrated rostering, time & attendance and payroll systems can track visit durations and travel time more accurately. This makes it easier to spot where effective hourly pay may dip and to adjust rates, rotas or runs accordingly. 

HMRC has powers to investigate employers and enforce NMW compliance. If they find that staff have been underpaid because travel time has not been properly considered, they can require employers to repay arrears of wages to workers, issue financial penalties and in certain circumstances, publicly name non-compliant employers.  

Beyond the financial impact, non-compliance can also:  

• Damage your reputation with current and prospective staff through poor feedback 
• Make recruitment and care staff retention even more difficult in a competitive labour market 
• Raise questions about governance, leadership and workforce wellbeing during regulatory inspections 

For social care providers, who rely heavily on their local reputation and staff loyalty, the risks are significant.

To manage travel costs effectively and support your workforce, consider the following: 

1. Pay for all eligible travel time. Ensure that all time spent travelling between clients is counted as working time and compensated at least at NMW/NLW, in line with GOV.UK guidance. 
2. Reimburse mileage at the updated HMRC rate. Review your mileage policy against the new 55p rate effective from 6 April 2026. If you have been paying at 45p since April, consider issuing a backdated top-up. 
3. Guide staff on Mileage Allowance Relief. If you pay below the approved rate, ensure workers know they can claim MAR on the difference via HMRC's guidance. 
4. Design realistic rotas. Build rotas that allow genuine travel time between visits. Use postcode-to-postcode estimates or route optimisation tools to reduce unnecessary mileage and gaps. 
5. Use electronic call monitoring. Log arrival and departure times accurately to build a reliable picture of actual working time, including travel. 
6. Run regular NMW compliance checks. Integrate scheduling and payroll so you can calculate effective hourly pay across all working time, including eligible travel, and flag workers at risk of falling below NMW. 
7. Maintain clear audit trails. Generate reports that demonstrate how you calculate working time, travel, and pay, for HMRC, commissioners, and regulators alike. 
8. Reference the Homecare Association's Minimum Price. Use the Homecare Association's annual Minimum Price for Homecare as a benchmark when negotiating with local authority and NHS commissioners. It is the most widely accepted framework for calculating the true cost of delivering care in the UK. 

Travel time pay is a sensitive topic for care workers and a complex one for providers. By understanding the rules, designing realistic rotas and using the right technology, you can protect your organisation and show your workforce that you value their time. 

While the legal framework can be complex, digital systems can make day‑to‑day management much simpler. Key ways technology helps include: 

1. Smarter rota planning and route optimisation 
   • Build rotas that allow realistic travel time between visits. 
   • Reduce unnecessary mileage and gaps, improving both efficiency and staff experience. 
2. Accurate recording of visit and travel time
   • Use electronic call monitoring (ECM) or mobile apps to log arrival and departure times. 
   • Use postcode‑to‑postcode time estimates or GPS data (where appropriate and lawful) to better understand travel time patterns. 
     
     
3. Automatic NMW checks
   • Integrate scheduling and payroll so you can see effective hourly pay across working time, including eligible travel. 
   • Run exception reports to flag workers at risk of falling below NMW. 
     
     
4. Clear audit trails
   • Generate reports for HMRC, commissioners and regulators showing how you calculate working time, travel and pay. 
   • Demonstrate proactive management of workforce wellbeing and fairness. 

If you would like an easy solution that ticks all of these boxes and more, you should consider Access Home Care Software. Managing travel time, building compliant rotas, ensuring fair pay, and maintaining accurate audit trails can be overwhelming for even the most experienced home care teams. If you want a solution that brings all of this together in one place, our platform gives you everything you need to become efficient and confident.  

Using Access Home Care Software will help you work smarter, maintain compliance and treat your workforce fairly without the administrative burden. If you would like to learn more, get in touch with one of our experts today or book your free demo.