Guidance

DWP policy on expenses for business travel and accommodation for Contractors, Interim Managers and Consultants

Published 13 September 2024

The term Contractor throughout this document applies to any external Contractors (this includes Contingent Labour, Consultants and Supplier Staff).

1. Key principles

DWP will reimburse necessary and reasonable business travel and accommodation costs incurred whilst undertaking duties on behalf of DWP and delivering requirements to DWP, where this is agreed as part of the contractual terms.  

This is subject to adherence to the following Key Principles:

• the Contractor should ensure they understand the policy and follow the correct procedures
• only travel when there is a business need to do so and the journey is wholly and necessary for business reasons
• the requirement to travel has been agreed with DWP in advance and that alternative arrangements have been considered for example, Microsoft Teams
• the most economical and suitable means of travel is used, taking into account value for money and sustainability factors
• travel (and accommodation) should be booked as far in advance as possible to benefit from the best price available
• all expenses must be in accordance with the expenses detailed in the Contractor Expense Policy at the time the expense is incurred
• all such expenses must have been incurred in performing DWP services away from their main base location of DWP work (as agreed in the Contract, Statement of Work or Work Order), and be minus the cost of travel to the main base location
• appropriate documentary evidence, such as receipts and tickets, of such expenses being incurred is provided to the appropriate DWP contact. To ensure the department has a robust audit trail and to meet HMRC requirements, Contractors are required to retain evidence of  travel costs and authorisations for the tax year that the expense is incurred and the following three tax years. Contractors should ensure they retain a copy of the evidence, such as the business case or receipts, for this period. Scanned / electronic copies are acceptable and can be retained. The department will not accept responsibility for any electronic receipts retained on the departmental network
• the expenses must be submitted at the same time as the relevant weekly timesheet or, where weekly timesheets are not required under the contract, as part of the next invoice submission
• DWP reserves the right to reject claims for unreasonable expenses, any expenses that are non-compliant with DWP Policy or expenses which could have been avoided if a journey had been better planned
• Contractors must not register or use DWP travel booking systems. Where appropriate, bookings can be made on behalf of a Contractor by a permanent staff member when accompanied by approval from the Hiring Manager.  The email should be retained by the permanent staff member booking the travel to ensure an audit trail is kept

2. Circumstances where DWP will not reimburse expenses incurred.

DWP will not reimburse costs incurred for travel to, or accommodation at, the main base location as specified in the Contract, Statement of Works or Work Order.

Additionally, in order to comply with Propriety and Regularity, Audit and Tax rules DWP will not pay, or be responsible for the payment of any fines or penalty charges in respect of private vehicles etc. during the undertaking of duties for DWP.

3. Offshore personnel

In exceptional circumstances, DWP Security approval may have been gained to allow Contractors to be located outside the UK. Where this is applicable in  a Contractors agreement with DWP, the following applies:

• business travel and accommodation expenses incurred in offshore locations will not be reimbursed
• where the Contractor decides to bring off-shore Contractors into the UK in order to perform services to DWP, i.e.: they become “landed”, then the DWP Contractor Expense Policy may apply where official travel and payment of expenses is specified within the Contract
• DWP will not be liable for any expenses incurred in order for the Contractors to be “landed” i.e.: for travel from the off-shore location to the on-shore location

4. Expense rates

The types of expenses and the rates payable are given below and are applicable from 9 May 2024. The rates payable are subject to change at which point this will be updated.

5. Reimbursable expenses

These are subject to the Key Principles.

Public Transport including Rail Travel

The most cost effective/value for money option should be obtained and Contractors can use their own organisations’ booking agent(s) or low-cost alternatives. Advantage should be taken of any offers for reduced travel (including Restricted and Advanced Purchase Tickets).

Alternatively, DWP employees can book travel on behalf of Contractors.

On public transport standard class travel must be used. First class travel is strictly prohibited irrespective of the duties undertaken. The use of Rail, Oyster and other discount cards or schemes is encouraged if evidence is shown that these will save DWP more than their cost.

Taxis

Taxi fares (up to a maximum of £50 per person per journey) may be reimbursed for official travel where their use is reasonable in the circumstances, and at least one of the following applies:

• where there is no other suitable method of public transport

• in exceptional circumstances where the saving of official time is important

• when heavy luggage has to be handled

• when shared by other Contractors working for DWP and the fare overall is cheaper than public transport

• there is a risk to personal safety

Air travel

Claims for domestic air travel are by exception and will only be permitted where, taking into account the full cost and duration of the journey including travel to/from the airport, and potential overnight stays saved, it offers better value for money than alternative methods.

(You must consider the value for money when considering travelling. The full end-to-end costs should be taken into account when considering which method of travel provides the best value for money.)

The cheapest ticket which meets the travel requirements must be purchased. In most circumstances this will be an Advance or Fixed ticket.

(These travel tickets are cheaper but require you to travel at a specified date and time. They cannot be refunded but can be exchanged or amended. The significant savings available generally outweigh the additional charges for changes.) 

Under no circumstances should a more expensive ticket be booked with a particular company just to accrue points/rewards.

Contractors can use their own organisations’ booking agent(s) or low-cost alternatives. Any claims for the cost of travel must be evidenced with supporting documentation and receipts.

Alternatively, DWP employees can book travel on behalf of Contractors.

Economy Class air travel must always be booked when travelling on domestic flights within the UK. No Business Class or first-class tickets must be booked on domestic flights regardless of the length/duration of journey.

Temporary vehicle hire

Contractors working for DWP may drive hired vehicles when carrying out DWP business. It must be stressed that this applies solely to DWP business. No driving can be undertaken for private use, their own company or any other company they are currently working for.

Any deviation from this will invalidate the Crown Indemnity cover (which applies instead of commercial insurance cover) and the Contractor will be responsible for any damages and costs.

Vehicle hire is only to be booked by a DWP employee on behalf of the Contractor. If a Contractor does not have a DWP pseudo staff number, the booker should book the vehicle in the Contractor’s name but use their own staff number and quote the relevant cost centre and Business Unit code. The employee will be required to complete the appropriate internal DWP checklist.

Where a car is hired through the Daily Rental process, vehicles should be supplied with a full tank of fuel and the Contractor must refuel the temporary vehicle before returning it, retaining the receipt for the appropriate period and submitting to the Hiring Manager for reimbursement.  There are no exceptions to this.

Private vehicle use

	Rate
Higher standard rate (up to 10,000)	£0.45 per mile
Lower standard rate (over 10,000)	£0.25 per mile
Motorcycle	£0.24 per mile

Contractors can only use their own vehicle for business journeys when there is no other practicable mode of transport including public transport. Permission must be gained from DWP for each business journey carried out in a private vehicle.

Before undertaking such journeys, the DWP manager must complete the appropriate internal DWP checklist and check that the Contractor holds a full current driving licence and that their motor vehicle insurance includes a Business Use clause.

Contractors cannot under any circumstances travel on DWP business using their own car if their insurance does not include the Business Use clause.

Contractors are also responsible for ensuring that their private vehicle is roadworthy and, where required, have a valid MOT Test Certificate.

All Contractor personnel must ensure their motor vehicle insurance policy includes an Employer Indemnity clause in addition to the Business Use clause. It is the policyholder’s responsibility to check with their insurance company that they have both types of cover.

Car parking

Car parking fees can be claimed on production of the appropriate documentary evidence. Receipts and tickets should be provided to the appropriate DWP contact.

Overnight accommodation

Where it is necessary for a Contractor to stay away from their main base location(s) for the performance of the contract then overnight accommodation costs will only be reimbursed where it is not possible for the Contractor to stay at their home.

The following principles apply to any accommodation booking:

1. It must be as close to the traveller’s end location as possible and within a 5 mile radius of the alternate workplace (outside London) or within 30 minutes travel (inside London)

2. It must be the most economical option, having taken into account the whole trip cost, such as public transport costs, taxi fares and travelling time

3. Contractors must book the most cost-effective hotel within the stated limit

4. Where possible hotels should be booked at least 14 days in advance to increase the likelihood that cheaper rooms are available

5. Under no circumstances should a more expensive hotel be booked with a particular company just to accrue points/rewards

Hotel

name	Upper limits per night
London	£150.00
Rest of the country except London	£100.00

Hotel bookings must be for room only.

The most cost effective/value for money option should be obtained and Contractors can use their own organisations’ booking agent(s) or low-cost alternatives. Advantage should be taken of any offers for reduced hotel rates.

Contractors are expected to book the lowest available rate hotel and may be asked to evidence this.

Any claims for the cost of accommodation must be supported with receipts.

Alternatively, DWP employees can book travel on behalf of Contractors.

Overnight stay with friends or relatives

Where a Contractor elects to stay with friends or relatives rather than in a hotel or other commercial establishment, then the Hotel rates do not apply.

Instead, the “friends and relatives” allowance is payable at a flat rate to cover accommodation.

	Allowance
Nightly	£25.00

6. Non-reimbursable expenses

Subsistence and meals

DWP will not reimburse claims for meals or subsistence, including Breakfast on overnight stays.

Mobile phone calls and internet usage

Costs for mobile telephone calls and Internet use cannot be claimed.

Fines and penalties

Fines, penalties and any associated administration costs incurred whilst using a private vehicle or temporary vehicle hire are the personal financial responsibility of the Contractor.

DWP has no financial responsibility for payment of any fines, penalties and administration costs associated with use of a private vehicle or temporary vehicle hire.