Decision ref
0133 2022/23
Decision date
27/02/2023
Portfolio
Environmental Services & Climate Change
Wards
None
Title
Employee Green Car leasing scheme
Summary
Introduction of electric / hybrid car leasing scheme for employees; supporting the Council’s climate emergency response and addressing issue of cost of living, recruitment and retention of staff. The scheme is operated by a reputable NHS trust and is accessed by multiple Local Authorities from across the UK.
Purpose
Provide details of electric / hybrid car leasing scheme that would support employees during cost-of-living pressures and support Council with recruitment and retention of staff. The scheme would also support the Councils Net-Zero objective. Further details on the scope, benefits and risks of the scheme are contained within the appended report that was presented to SLT in October 2022.
Background
Officers have become aware of an opportunity to join a public sector car leasing scheme, operated by Northumbria NHS Foundation trust. The scheme is available to NHS organisations, Local Government and other public sector organisations. Currently 250 different organisations are signed up to the scheme. Warrington, Trafford and York are 3 of many LA’s who use the scheme.
The scheme typically operates on a salary sacrifice basis and enables employees to lease a brand-new car at a significantly discounted rate. The rate includes all hire, insurance and servicing costs.
Employers who sign up to the scheme also receive a financial incentive via reduced National insurance and pension contributions. Estimates indicate that this income could be worth up to £700 per car per year that is leased through the scheme.
This will delivery of savings across the organisation
The report is presented jointly between the Place and People Directorate. This is because there are 2 primary benefits associated with the scheme:
1. Reducing vehicle emissions is one of the key elements of our net zero strategy
2. Access to a new, affordable vehicle is seen as an integral component in improving recruitment and retention performance
Conclusion
That the Council enters into contract via ESPO Framework with Northumbria Healthcare NHS Foundation Trust, trading as Fleet Solutions, for an electric / hybrid car leasing scheme.
Risk Implications
Staff leave the organisation whilst still in contract for a vehicle, leaving the Council liable for any termination fees
Internal resources required to administer the scheme becomes onerous
Insufficient EV charging infrastructure in place
This scheme is progressed in abstract and in advance of any wider review of terms and conditions.
Possible long lead in time for some vehicles
The draft of some of the companies standard documents are poor drafted
Measures to Redress Risk
Staff leave the organisation whilst still in contract for a vehicle, leaving the Council liable for any termination fees
• Unless the member of staff leaves with no salary owed, any termination fees would be deducted from the employee’s salary .
• A £10 per month insurance policy can be put in place to cover instances like this. This cover also accounts for maternity, parental leave, illness etc.
• A proportion of the annual income received could be ringfenced to cover any costs associated with employees leaving the organisation and not paying the termination fee.
Internal resources required to administer the scheme becomes onerous
• This is not the case in other organisations who access the scheme. Much of the scheme administration is undertaken by the scheme operator.
• A proportion of the annual income received could be ringfenced to cover any costs associated with the scheme administration.
• This could cover the costs for any dedicated support required from HR.
Insufficient EV charging infrastructure in place
• The Council currently has a small number of charge points installed. These will all be available to staff.
• A separate review is underway to consider the Council’s EV charging strategy. This is likely to result in an increase in the number of charge points
• The Council could use capital funding to install several additional charge points in its car parks. This could then generate an income stream if there is a view that the council charges staff to charge their vehicle.
• The Council’s parking enforcement contractor also has a proposal to fund and install EV charging points at various locations.
• We may also wish to consider the installation of solar canopies at some of our car parks, this will mean that the electricity required is renewable and generated on site.
This scheme is progressed in abstract and in advance of any wider review of terms and conditions.
• As there are live and current recruitment and retention issues it is felt that the benefits of the scheme should be pursued.
• As the scheme is self-contained and operated by an external provider there is limited chance for this to overlap with any possible wider review of terms and conditions.
Long lead in time for vehicles
• This is a current issue facing the new car market and is not specific to this scheme.
• The scheme operator does pre-order vehicles so can offer options for short delivery if staff are flexible on vehicle specification
Drafting of documents
• Some of the drafting issues have been amended, however due to these being standard documents across 100's contracts the company not able to make all changes requested
Declarations Of Interest
None
More information
Please contact Trevor Nicoll on 01744 676482
