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Changes to leave schemes, pension contributions while taking unpaid leave and mileage rates

4 August 2026

We've made some changes to our leave schemes, rules around pension contributions while taking unpaid leave and our mileage claim rates.


Travel policy updated and mileage claim rate increased

We’ve increased the mileage rate you can claim if you use your own car and claim business mileage.

The rate which is based on HMRC rates, has increased from 45p to 55p per mile for the first 10,000 miles. No other rates have changed.

Employees will receive a backdated payment for any claims submitted for the period from 1 April 2026 which will be paid with August pay.

We’ve also updated the travel policy because we’ve made changes to the claims process and route planning tools as a result of implementing the new expenses system.

The policy format has also been updated to make it easier to find the travel information that is relevant to each employee profile

Employee leave schemes

The government has introduced a number of changes as part of the Employment Rights Act. 

These changes provide additional leave to employees who meet the eligibility criteria.

The employee leave schemes policy has been updated and changes have been made to the following existing leave types:

Paternity leave 

Employees are eligible for paternity leave from their first day of employment. They must notify their manager of their entitlement to leave and complete the latest forms. Employees will receive paid paternity leave if they meet the eligibility criteria for pay.

Shared parental leave

Employees can take paternity leave as well as shared parental leave.

Parental leave

Employees are eligible to take this leave from the first day of employment.

Medical screening

Employees may still attend diabetes screening although this now happens in a primary care setting.

We've also included these new statutory entitlements are included in the policy:

Parental bereavement leave

Employees who are the primary career for a child that dies can take up to 2 weeks leave and will receive statutory parental bereavement leave pay if they meet the eligibility requirements.

Bereaved partner’s paternity leave

Employees can take one period of up to 52 weeks unpaid leave in circumstances where they have the main responsibility for the upbringing of the child and their primary carer dies.

If you have any questions, please contact your line manager.

Pension contributions and unpaid leave

Regulatory changes have been made to how pension contributions to the Local Government Pension Scheme (LGPS) are treated while employees are on unpaid leave, including statutory leave with effect from 1 April 2026.

The LGPS will now require compulsory pension contributions for authorised unpaid absences of 14 days or less with contributions based on ‘lost’ pay at the member and employer’s normal contribution rates. The existing rules based on age-related factors with two-thirds of costs being met by the employer will no longer apply to unpaid absences starting on or after 1 April 2026.

The LGPS is also extending the time limit LGPS members have to buy back pension ‘lost’ during a period of authorised unpaid absence that lasts more than 14 days starting on or after 1 April 2026 increasing this from 30 days to 1 year.

The existing rules based on age-related factors with two-thirds of costs being met by the employer will no longer apply to unpaid absences starting on or after 1 April 2026.