Two of the country’s largest fleets – IBM UK and National Grid – have launched salary sacrifice car schemes. The move gives 28,000 employees access to a company car – 18,000 at IBM and 10,000 at National Grid.
IBM’s 4,800 drivers in its existing company car scheme will order their next car through the scheme, while more than 7,000 employees will now have the opportunity to obtain a company car for the first time.
IBM’s 6,000 cash allowance drivers will still be offered the cash option and it does not envisage all cash allowance drivers switching to salary sacrifice. However, companies need to undertake a full fleet analysis before deciding whether to put all employees on a salary sacrifice car scheme, according to Tusker.
IBM’s fleet manager Phil Redman said: “Salary sacrifice gives employees the opportunity to drive a brand new car at a competitive price with all the advantages of a modern car such as low emissions, improved fuel consumption, latest technology and increased safety at a fixed cost for the next few years.”
Previously, IBM funded its fleet through contract hire and Redman says that salary sacrifice will be more beneficial for employees and the company. “It’s an opportunity to provide a new benefit in the market place,” he said.
A CO2 emissions cap of 120g/km is in place for employees having access to a company for the first time, while an emissions cap of 140g/km applies to essential car users. Executive fleet drivers see levies introduced once drivers exceed 140g/km.
These caps are designed to encourage employees to choose more fuel efficient and low CO2 vehicles, and to contain the company’s cost.
IBM has stayed with its current funding provider LeasePlan and brought in a new supplier, Alphabet, in order to “meet the additional need and give some competition on pricing”.
Meanwhile, National Grid has opted for a bespoke scheme from Tusker.
More follows on page two...