Executive perk that drives up bills

An investigation by the Yorkshire Post reveals a range of vehicle deals are in place for senior NHS managers despite controversy about excessive rewards for senior public sector figures.

National figures show around 26,000 staff working for the NHS earn more than 100,000 but it is estimated more than 90 per cent of these are doctors.

NHS chief executives in Yorkshire earn between 130,000 and 225,000 annually. Pay for other executive directors ranges from 80,000-160,000.

Significant numbers also pick up additional rewards through car perks. Some NHS organisations are paying out nearly 30,000 for executives to run cars even if they do not use them for work.

In contrast, other NHS trusts make no payments for board directors to run cars and some even appear to make no claims for travel expenses.

Of the 10 NHS trusts where executives declared the highest total amounts in benefits-in-kind from car allowances in Yorkshire, six face abolition in a shake-up handing spending decisions to GPs.

Three of those remaining are elite foundation trusts where managers have been handed extra responsibilities for running services.

Six directors at the Yorkshire Ambulance Service declared the highest total benefits-in-kind amid claims their regional and on-call duties mean they are more reliant on cars for work – although figures show two who received the perks last year claimed nothing in business mileage and a third received mileage of only 37.

They are among a number of executives who claimed no business mileage despite being given an allowance for running a car.

At Leeds Partnerships NHS Foundation Trust, which runs mental health and community services, chief executive Chris Butler received a car allowance worth 6,400 despite claiming nothing in mileage

A trust spokesman said: "Our executive team are required to undertake a reasonable amount of local, regional and national travel during the course of their work.

"We are aware of our responsibility in spending public money and review travel expenses for all staff on a regular basis."

Arrangements for car packages differ significantly. Some trusts – among them NHS Rotherham – pay executives a lump sum towards their cars worth 4,721 for each of six directors.

Others do not directly receive cash. They are offered an allowance for a car which is leased by their trust as part of their remuneration deal. They then choose a car and if the value of the leasing costs exceeds the allowance, they can pay the difference themselves.

They must then also pay tax on the benefit-in-kind of the deal which is calculated under a formula devised by the taxman.

This can have different consequences. Figures show the benefit-in-kind declared by NHS Doncaster chief executive Annette Laban on a lease car last year was 9,100 but the cost to the taxpayer for her car was 6,000.

Humber NHS Foundation Trust, which provides mental health services, puts an allowance towards the annual rental of cars for five of its executives which last year cost it 22,500 but the total benefit-in-kind was worth 24,300.

The lease car for its medical director Douglas Gee cost 5,279 but the benefit-in-kind was worth 7,126. The cost to the taxpayer of chief executive Dave Snowdon's lease car was 4,886 but the benefit-in-kind was 3,750.

The overall cost of travel expenses also varied considerably. Board members at hospitals in Leeds apparently claimed less than 2,000 in travel expenses over the 12 months to March and received no car perks. But other trusts saw travel and transport spending running into many tens of thousands of pounds.