Drivers are increasingly moving away from cash allowances and back into company cars, according to fleet operators.

Fleets were asked to look specifically at cash allowances and the trends they expect to see over the next six months.

Just over one-fifth (21%) of fleet operators say that more cash allowance drivers will move back into company cars.

This is most pronounced in the private sector, where a quarter of companies say they expect to see a shift back into company cars.

Fleets point out that wholelife cost models have shown a benefit to taking a company car, while CO2 caps within the fleet, including private vehicles used on company business, are also driving the change.

One fleet operator said: “In the present environment, employees want to have security and not take the risk of running their own car.”

In addition, some companies indicate the introduction of salary sacrifice as another reason for the shift, as technically these are classed as company cars.

Despite this, a small proportion of fleets do expect a shift in the opposite direction. In some cases, fleets suggest this is because drivers don’t want to be locked into a car for several years while tax rates increase for the model they choose.

However, in some cases, the shift is part of a company policy where drivers are being removed from company cars as part of cost-cutting.