COMPANY CARS
Environmental issues having big impact on company car policies
Environmental awareness is being considered by an increasing number of companies when developing their company car policies, according to a report by Monks, the PricewaterhouseCoopers reward survey business.
The survey found that a “green transport policy” has been introduced in nearly a quarter of companies (22%) and car sharing is encouraged in two-fifths of companies (40%).
Health and safety of employees is also paramount in the development of company car policies. Over half (51%) of UK companies are preparing for the new anti-smoking laws and nine in ten companies now have a policy regarding mobile phone use in cars.
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As Gary Hull, director of employment solutions at PwC, explained: “Company car policies in the UK are continuing to evolve with many employers now taking environmental pressures and road safety into account even more so than before. This will have to be recognised by providers as the need to ensure that employees have access to, and are encouraged to take up, green transport options increases.”
Other key survey results
Diesel engine cars: More than a quarter of companies (27%) restrict choices to diesel engine cars. Since the changes to company car taxation were introduced in 2002 there has been a move towards diesel-engined cars as a more environmentally friendly power source, with the added advantage of lower fuel consumption.
Cycle to work: Around half of all companies (48%) now encourage employees to cycle to work, with 76% of these companies providing showers and the same percentage offering secure parking.
Car availability: The typical salary at which a car is provided as a standard benefit has continued to rise and is now £35,000 a year. The percentage of companies offering a choice of company car or cash allowance in lieu of a car, or provide a cash allowance only, has increased steadily over the last ten years from 62% in 1997 to nearly 90%.
Fuel provision and mileage allowances: There has been a decrease in the number of companies providing all fuel for private use. In 70% of companies some drivers have elected not to receive fuel for private motoring.
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Title: Company Car UK 2007, Monks.
Survey sample: Monks gathered data from 188 companies who between them manage over 81,000 cars. The report covers car availability, car allocation policy, flexibility, cash allowances, fuel provision, mileage allowance, fleet policy and taxation.
Availability: This 150-page report is based on an annual survey conducted in December and January, supplemented by information from the Monks management remuneration database. To order your copy online visit www.monkspwc.co.uk/order_car_uk.html
To find out more about the report visit www.monkspwc.co.uk/car_uk.html
The member firms of the PricewaterhouseCoopers network provide “industry focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders”. For more details visit www.pwc.com