Oldham claims to be a cash-strapped Council, but still pays £62,000 a year to staff using their car to travel less than two miles per week on Council business.

The Leader of the Opposition and of the Liberal Democrat Group on Oldham Council, Councillor Howard Sykes MBE, is dismayed by this waste of public money at a time when public services are being squeezed.

Figures uncovered by the Oldham Council Liberal Democrat Group reveal that in the 2016 – 17 financial year 124 staff designated ‘Essential’ car users made a claim for business travel of 100 miles or less.

Such ‘Essential’ users automatically qualify for a £500 lump-sum simply for having a vehicle for business and can also claim a 45 pence per mile allowance and receive a 100% subsidy for parking charges when parking in the town centre.

Commenting Councillor Sykes said: “An ‘essential car user’ working at Civic Centre and travelling just one hundred miles a year on business would receive £545 and free parking; this adds up to quite a tidy sum towards the cost of running a car for not a lot of inconvenience.”

“Surely this is financial madness as these officers are travelling so few miles on business that it would probably be cheaper to send them in taxis.”

Councillor Sykes has written to the Chief Executive Dr Carolyn Wilkins OBE, Borough Treasurer Anne Ryans, and Deputy Council Leader Cllr Abdul Jabbar MBE to request this Council reviews the whole scheme.  He has suggested that a simple mileage allowance be paid for those travelling under a certain number of business miles and that the £500 lump sum be phased in beyond this point.

At Councillor Sykes also suggests: “At a time when the Council must look at save every penny, we should also take another look at a car pooling scheme for those staff with such low-mileage on business travel.”

Copy of email send below:

From: Howard Sykes
Sent: 02 August 2017 07:08
To: Cllr A Jabbar
Cc: Anne Ryans; Carolyn Wilkins; (A) Kay Gibson (kay.gibson@oldham.gov.uk)
Subject: Oldham Council essential car users

Dear Councillor Jabbar,

I am writing to you with a money saving proposal, which, in these times of financial challenge for local authorities, I am hoping the Council will chose to consider.

Oldham Council pays a lump sum of £500 per annum to essential car users regardless of the mileage travelled on Council business.

In 2016 – 17, one hundred and twenty four staff, who were deemed to be essential car users, made a claim for business travel of 100 miles or less.

We are paying them £62,000 a year for using their car to travel less than two miles per week on Council business.

Such staff can also claim 45 pence per mile allowance and receive a 100% subsidy for parking charges when parking in the town centre.

At a time when public services are being squeezed, this is an area we must look at. An ‘essential car user’ working at Civic Centre and travelling just one hundred miles a year on business would receive £950 and free parking; this adds up to quite a tidy sum towards the cost of running a car for not a lot of inconvenience.  It would clearly be cheaper to send them in taxis.

I accept with a few this would not be an acceptable or appropriate alternative.

I request we take a look at this whole scheme again.  There should be in my view a simple mileage allowance for those travelling under a certain number of business miles and the £500 lump sum should be phased in beyond this point.  And at a time when we are looking to save every penny, I would suggest we should take another look at a car pooling scheme for those staff that need to do such low-mileage on business travel.

I shall look forward to receiving your reply.

Best wishes.

Councillor Howard Sykes MBE