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Why is salary sacrifice replacing grey fleet within the NHS?

 

Salary sacrifice car schemes are very much on the rise and we’re taking a look at how they impact Grey Fleet in NHS Trusts.

NHS Trusts have a  responsibility to provide their employees with an incentivised option to move from older, more polluting cars, to  new, safe and greener ones. With increased pressure, more and more NHS organisations have found that the structure of salary sacrifice car schemes fulfil their requirements. Not only does the scheme help to address the grey fleet issue, but also improves  staff retention, motivation and helps staff to maximise their current salaries in times of little to no pay rises.

We're helping over 260 organisations reduce their fleet operation costs and CO2 emissions through our Car Benefit Scheme.

We recently conducted research into around 50 of our NHS Trust customers who previously replaced Grey Fleet with their salary sacrifice solution. It was identified that the brand new cars taken through the scheme, are on average replacing 7–8 year old vehicles.  It was also highlighted that amongst these customers, there’s a reduction of 37% in the average CO2 tailpipe emissions. This reduction will continue as manufacturers persevere in driving down CO2 emissions, creating cleaner and more fuel efficient cars.

Out of the 552 vehicles analysed through Tusker’s research, new models included the plug-in hybrid Mitsubishi Outlander, the 100% zero-emission Renault Zoe and the range extender BMW i3.

Example of a scheme replacing Grey Fleet

Newcastle Upon Tyne Hospitals NHS Foundation Trust (NUTH), is a fine example of a successful salary sacrifice solution implemented to get employees out of grey cars.  

Through implementing the scheme NUTH have been able to provide approximately 13,000 eligible employees with the option of greener cars, better terms, reduced risk and improved service levels. The scheme is available to staff across all sites, who work either full or part time hours and meet NUTH’s minimum requirements.

With a continuously growing fleet and nearly 1,200 cars ordered to date, the scheme at NUTH has been a hit with uptake and feedback exceeding all expectations.

“Salary sacrifice cars can be the perfect solution to address a company’s grey fleet. Employees are able to get brand new, tax and fuel efficient worry free cars, and employers can rest assured that employees who have a car through the scheme have a valid licence, fully comprehensive insurance and a safe and well maintained car.” said David Hosking, Chief Executive Officer at Tusker.  

 

 

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