Nicholas Bennett, head of the compensation and human resource practice at Buck Consultants, said: 'The popularity of the cash allowance, as an alternative to the company car has taken off this year, rising from 18% of companies in 1992. This is particularly the case among larger companies where cash allowances are now offered in 84% of cases.' And the move to cash appears set to continue this year with 22% of the 350-plus companies quoted in the survey indicating that they would be making changes to or introducing allowances in 1998.
However, while more companies are offering a cash option take-up varies dramatically between individual companies, with Bennett claiming that typically the larger the company the larger the take-up among staff who have 'perk' cars. 'We see the popularity of the cash allowance increasing; not only with more companies offering it as an alternative, but with more individuals actually taking the cash option where it is offered,' he said.