UK care workers are receiving more than £107,000 after a labour standards investigation found underpayments linked to business mileage at a domiciliary care provider. The repayments cover workers at branches in Mansfield and Northampton, and the employer has raised its mileage rate to 40p per mile for 2026.
Highlights
- Fair Work Agency investigation finds UK domiciliary care workers were underpaid mileage reimbursements, triggering £107,935.96 in repayments to affected staff.
- Repayments include £61,343.93 for Mansfield and £46,592.03 for Northampton branches, with the employer raising mileage rates from 5p to 40p per mile for 2026.
- Case underscores compliance and cost risks for UK care providers, as mileage reimbursement policies directly impact legal pay entitlement obligations and future reforms.
Mileage underpayment review at care provider
As reported by GOV.UK, the Fair Work Agency says an investigation triggered by information received through its contact centre identifies that domiciliary care workers at a care provider are not receiving appropriate reimbursement for mileage incurred while carrying out their duties.Agency officials work with the employer to review its mileage arrangements, after which the company recognises staff have been underpaid and seeks to correct this for affected workers, including former employees. The total amount identified for repayment is £107,935.96.
The sum includes £61,343.93 for workers at the Mansfield branch and £46,592.03 for workers at the Northampton branch. The employer also increases its mileage reimbursement rate from 5p per mile to 40p per mile for 2026.
Compliance pressure on UK care employers
A spokesperson for the Fair Work Agency says the outcome will make a significant difference to the workers affected and demonstrates the importance of ensuring employees receive the pay and entitlements they are owed. The agency adds that it continues to work with employers and workers to improve compliance, raise awareness of employment rights and help create fairer workplaces.The case highlights cost and compliance risks for care providers whose staff travel between appointments as part of their work. For employers in domiciliary care, mileage policies can directly affect whether pay arrangements meet legal entitlement standards.
We recently reported on Chancellor John Healey sticking to IMF-backed deficit-reduction plans ahead of the October Budget.
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