• Online Event Recap: Understanding Full Cost Recovery

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    • Online Event Recap: Understanding Full Cost Recovery
    • by Rachael Murphy
      Director for Scotland

    Following the introduction of the Department for Transport’s guidance on section 19 and 22 permits at the end of last year, CTA has been helping members get to grips with the implications of that guidance for their services. In February we hosted a webinar and discussion for members looking at the basic fundamentals of the guidance and how it operated – you can find all our resources on that topic in the members’ area of our website here.

    During that session, several members expressed an interest in finding out more about the financial considerations that the guidance places on CTs. To help members work this through in their own organisations, Anna Whitty MBE, from Ealing Community Transport and Peter Haley, from People to Places led a session on full cost recovery and how that can help members navigate their obligations.

    Anna helpfully provided an overview helping CTs decide what is and is not allowable when calculating full cost recovery when operating a contract under a permit. In this thought provoking presentation members were helped to navigate what is a direct or indirect cost and how to calculate overheads. Members were encouraged to look again at their financial models and reassess how they can better maximise resources to better serve their community. Anna directly addressed the wording of the guidance and helped members to navigate some of the financial challenges presented by the new guidance and how best to account for that in the full cost recovery model.

    In a lively Q&A session, Anna and Peter tackled members’ questions, helping us all think through the implications of running a service. If anyone has any further questions, please feel free to email the advice service or attend one of our Friday drop-ins, were our advice team will be able to help you navigate this area in your own organisation.


    Slides and recording

    You can find a full recording of the event and the slides that were used, as well as wider resources looking at the Department for Transport’s guidance on section 19 and 22 permits in the members’ area of our website here – including our recent event on the non-commercial purposes exemption as well as flow charts, an overview of permits and operator licensing and a number of info sheets.

    As ever, if you have any questions or need any support, you can contact the CTA advice team via advice@ctauk.org.


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