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Rise in salary sacrifice car schemes as FE employers look to strengthen green policies


By CPC Helpdesk

With research published last year highlighting that 86% of new graduates only want to work for employers with strong green credentials, it has never been more important to have a comprehensive sustainability programme that benefits employees, the community and environment.

Over the last 12 months, CPC Sustainable Fleet Solutions framework supplier Knowles Fleet has seen a marked increase in demand across the further education sector for its greener car schemes as a tax efficient way to offer an attractive staff benefit that cuts carbon emissions and saves money too.

Salary sacrifice schemes enable employees to exchange part of their monthly pay in return for a non cash benefit, in this case a new, lower emission car.

Staff save on income tax and National Insurance (NI) contributions, while employers benefit from Class 1 NI savings.

Dan O’Neill, commercial director at Knowles Fleet explains: “Supporting the environment is a key priority, particularly for the younger generation, and should form an important part of every organisation’s strategy, not only to reduce emissions but to attract and retain talent and cut costs.

“Transport is one of the biggest sources of emissions but can be a tricky area to tackle, especially when it comes to the privately owned vehicles employees use for work which tend to be older and more polluting.

“Salary sacrifice schemes provide a great way to incentivise staff to drive a new, greener car, especially as electric vehicles attract much lower company car tax which adds to the financial savings that can be made.”

Each of Knowles’ schemes is tailored to the individual organisation with specific measures to maximise emissions savings. Full carbon reduction reporting is also included to support employers’ net zero commitments.

Dan O’Neill continues: “We want to make it as easy as possible for academies and colleges to run a sustainable car scheme as part of their environmental strategy. That’s why we take care of all the associated administration for both the employer and employee and offer a full range of free support services to help staff transition to lower emission driving.”

Knowles’ electric vehicle (EV) support services include:

  • Employee webinars to introduce the scheme and discuss any concerns staff may have about transitioning to an EV.
  • On site client ‘Arrive & Drive’ events for employees to test drive electric and lower emission cars and speak with Knowles’ expert team.
  • Personal shopper calls which employees can book to discuss vehicle choices and EV driving.
  • Preferential support with home charging solutions through Knowles’ network of national charge point providers.
  • ‘Experience EV’ option which offers employees the chance to take out an EV on a mini lease to see what it is like to live with before they commit.
  • Scheme marketing material to highlight the benefits and financial savings available through the scheme.

Knowles Fleet is an independent, employee owned company committed to reducing its environmental impact and delivering social value. In recognition of this, Knowles has been awarded silver status by EcoVadis, the world’s largest provider of business sustainability ratings.

To find out more about Knowles' sustainable car benefit schemes and wider transport management services, visit knowlesfleet.com

For further information, please contact Rachel Cass, Business Development Manager at Knowles Fleet via 01206 255 400 or [email protected]

Knowles Fleet is an independent fleet management company providing industry leading, outsourced vehicle management and complete administration services. Services include lease car scheme design and management, salary sacrifice and salary deduction, quotation portal and fleet management software, driver services, mileage and expenses, grey fleet management, fleet insurance and accident management. Knowles Fleet provides services to over 170 NHS, wider public sector and private organisations, and manages a fleet of over 25,000 vehicles. Established in 1990, Knowles is based in Great Bentley, Essex and employs over 55 staff. The company transitioned to an Employee Ownership Trust on 1 May 2020 and is a member of the Employee Ownership Association.

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