LITTLEWOODS is scrapping its 500-strong 'perk' car fleet and introducing a personal contract motoring scheme as part of a reform of its benefits and remuneration policy. The transition will affect the company's senior management before being extended to other employees, including 300 essential car users, later in the year.

Littlewoods last reviewed its remuneration philosophy 20 years ago and has now decided to remove its top six grades and associated salary bands as part of the move to a more flexible remuneration package. This will give employees a greater say in how they receive benefit, and prevent the 'perk car' drivers from replacing their company cars with new ones when they come up for renewal. Instead, they will have a non-pensionable cash allowance which they will be able to use to source a car through a nominated PCP provider or privately, or spend the money on other benefits such as dental care or extra holiday.

Rod Rees, director of remuneration, said the new system was designed to combat hierarchy within the benefits package and to reflect a 'flatter' management structure.'I would expect the majority to use the PCP scheme because they will still need a car for normal business and personal use. Cars should still fit with the company image and be able to be used for business purposes.'