The Employment Committee of Surrey Heath Borough Council is scheduled to meet on 9 October 2025, to discuss a benefits review and the committee's work programme for the coming year. The benefits review will cover the Essential Car User Allowance and Private Medical Insurance, and the work programme will focus on activities required due to constitutional and legislative requirements, bearing in mind potential Local Government Reorganisation.

Benefits Review

The committee is scheduled to discuss a review of the council's benefits, specifically the Essential Car User Allowance (ECUA) and Private Medical Insurance (PMI). According to the report pack, the review was undertaken as part of a transformation programme to align Surrey Heath Borough Council with other Surrey councils, improve financial sustainability and prepare for potential Local Government Reorganisation. The Performance and Scrutiny Committee and the Executive of the Council have reportedly endorsed these proposals.

Private Medical Insurance

The report pack states that Surrey Heath Borough Council is unusual in offering a non-contributory PMI scheme to all staff with three years' service or more. As of July 2025, 124 employees were members of the Westfield Health Private Medical Insurance scheme. The proposal put to staff was to either reduce the level of cover, introduce staff contributions, or remove the surgery option.

Feedback from staff during the consultation process highlighted the importance of the benefit for staff retention and its perceived contribution to low sickness levels. Staff indicated a preference for retaining a non-contributory scheme at a reduced Level 2 cover, rather than a contributory scheme at Level 3.

The report pack indicates that the benefit to be offered in 2026/7 will be at Level 2 cover, and the surgery option will be retained. The report pack notes that because PMI is a non-contractual benefit, it is unlikely to transfer to a new unitary authority under Transfer of Undertakings (Protection of Employment) regulations¹.

Essential Car User Allowance

The current criteria for the ECUA include a requirement to use a vehicle for work and cover 3,000 business miles per year, with an allowance of £2,000 per year, plus 45p per mile for the first 10,000 miles. The report pack states that 22% of Surrey Heath Borough Council staff receive a car allowance, primarily those in front line roles such as planning, environmental health and housing. The report pack also notes that modern working methods have changed driving practices, and only 11% of employees receiving the allowance currently meet the 3,000 mile criteria.

The proposals put to staff included reducing the allowance to £1,239 per year (in line with other Surrey councils), reducing the mileage expense claim to 25p per mile, and introducing a points system to define essential car users.

Feedback from staff indicated agreement that the current mileage criteria should be reviewed, and that the proposed points system was fairer. Concerns were raised about the definition of 'high risk' within the points system, the impact on overall pay, and the timing of the review in light of potential Local Government Reorganisation.

The Corporate Management Team (CMT) is recommending that the Employment Committee approve the change to £1,239 for the ECUA. The CMT considers the allowance to be specifically for requiring an employee to use their personal car for work purposes, rather than compensation for the cost of using a car. The report pack indicates that the mileage rate of 45p per mile will not be reduced, and that the Car and Road User Policy will be amended to reflect more detail on the definition of 'risk'.

The report pack notes that because the change to the ECUA is a change to terms and conditions of employment, employees must consent to the change for it to be valid. Employees who do not consent will be reviewed on the current 3,000 miles per annum criteria.

Work Programme 2025/26

The committee will be asked to agree its work programme for the 2025/26 municipal year. The report pack indicates that the programme has been prepared with Local Government Reorganisation in mind, focusing on activities required due to constitutional and legislative requirements.

The scheduled meetings for the year are:

• 10 July 2025
• 9 October 2025
• 27 November 2025
• 29 January 2026
• 26 March 2026

The proposed work programme includes discussion of the 2025/2026 pay settlement, review of the possibility of buying and selling leave, the Anti-Fraud and Corruption Strategy/Policy, workforce profile, people strategy, car and road user policy, exceptional payments policy, speak up policy, gender pay gap report, chief executive pay award and appraisal, pension discretions policy and pay policy statement.