About VT Education & Skills
Business: training, education and skills
Supply chain director: Mark Mardell
No of staff: 4,000
Turnover: £250 million
No of company cars: 450
Size of grey fleet: 250

Two years ago VT Education & Skills (VT) made some key changes to its fleet policy to encourage grey drivers back into company cars and address three concerns: attracting and retaining the best staff, duty of care and reducing the carbon footprint.

Discussions with staff – current and recent leavers – raised various issues including the cost of running their own cars. This not only included the servicing, tyres and insurance, but also the purchase cost of their cars which needed to be replaced on a regular basis.
Around 500 VT staff were travelling more than six million business miles per year in their own cars. Many were running older cars which had environmental and safety implications. Duty of Care put the focus firmly on these drivers.

“We decided to deal with the problem by introducing a fleet of company owned cars that employees could use both for work and privately,” says supply chain director Mark Mardell.

“The key was to find a vehicle that was acceptable to the employees, would have a low emissions level, and for which there would be a good national service network that matched VT’s own wide geographical spread.”

Various ‘green’ models were tested and the eventual choice was the Vauxhall Corsa 1.3 CDTi, which was chosen for its fuel efficiency, low emissions of 119 g/km of CO2, sustainability and low lease cost.

To qualify, staff needed to have been with VT for a given period and also to be travelling a minimum number of business miles. The company estimates that approximately 30% of the eligible staff have to date been provided with a car. It expects more than 250 staff to take up the offer within a year.

“Risks to employees who drive on business have been reduced and the ability to retain high calibre employees and to attract new people has been enhanced,” says Mardell.
“Overall costs related to the use of cars on company business are lower, more predictable and can be better controlled.”

Since February 2008, VT has saved some 45 tonnes of CO2. It hopes that if 70% of the 500 eligible employees join the scheme, the saving could eventually reach 340 tonnes a year, equal to the average annual output of 56 homes.

Selling the scheme: benefits to staff
• Reduction in initial outlay of purchasing fuel before monthly expenses are claimed back
• Improved safety due to the maintenance package which comes with the car
• Having a new car not just for work purposes but also for private usage
• Private mileage reduction in costs
• Reduced worry of unplanned cost due to breakdown or accident
• The release of the capital which was previously held in their own vehicle
• A better vehicle
• No large (sudden or unexpected) costs e.g. tyres, accidents, insurance, MOT repairs etc.