Qualification for Relocation Payments
We have a received a request under the Freedom of Information Act 2000 for the following: Under what circumstances do staff qualify for …
We have a received a request under the Freedom of Information Act 2000 for the following:
Under what circumstances do staff qualify for rent/mortgage payments due to relocation? Under what circumstances do staff qualify for lump sum/increase in monthly earnings due to relocation? Please provide as much information as possible.
We released the following information on 17 January 2011
To qualify for expenses on relocation the posting must be classed as being on permanent compulsory transfer terms or ‘at public expense’, otherwise no relocation expenses are payable. Relocation expenses are also limited to postings where the new office is more than 75 minutes away from the employee’s current home (90 minutes for postings to London).
Assistance towards rent and/or mortgage can be towards the cost of temporary or permanent accommodation in the following circumstances:
• To assist towards the excess cost of renting temporary accommodation in the new location compared to a number of outgoings of the old home. Every effort must be made to dispose of the former home and obtain new permanent accommodation. Such efforts are reviewed regularly and assistance can be withdrawn if the HO is dissatisfied. Assistance is limited to £36 per day and ceases once the new home is occupied.
• To assist with the continuing mortgage commitment on the old home whilst every effort is being made to secure a sale. Efforts are reviewed regularly and assistance is limited to £36 per day and ceases once the old home is sold.
• To assist towards the additional mortgage commitment taken on after purchasing a new home close to the new place of work. This is based on the new mortgage required after taking into consideration the equity received on the sale of the former home. Where no additional mortgage commitment has been incurred or needed to be incurred no assistance is given. Assistance is recalculated if the employee subsequently moves home again voluntarily, with no increase permitted.
• Similarly, assistance is given towards the additional rent commitment taken on after moving into a new permanent rented address.
Lump sum/increase in monthly earnings:
• Relocations do not qualify for lump sum increases in monthly earnings.
• Monthly earnings should only increase on relocation if the posting is into a London pay area or a different London pay area and/or if on promotion.
Published: 17 January 2011
From: Home Office