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Managing employee travel

Vehicles owned by employees that are used for business purposes are sometimes referred to as ‘grey fleet’. They are an important, but often neglected, aspect of fleet management.

Employers are spending around £5.5billion a year on 12billion miles driven by employees each year, contributing to congestion, air pollution and emitting 3.5million tonnes of CO2*.

These same cars are also responsible for a significant portion of the £2.7billion costs associated with work-related road accidents and are often older, less safe and more polluting than the average vehicle in the UK. Grey fleet at such high levels is often unnecessary and alternatives such as active travel, company cars, public transport and car clubs are can be more suitable. Learn more about grey fleet and discover what options are available to managers and employees.

*According to the joint report by BVRLA and Energy Saving Trust ‘Getting to grips with grey fleet’, released 2016

Polluting car

Jump to: Grey fleet, Alternatives to grey fleet use, Government Fleet Innovators Group, Case studies

 

Grey fleet 

Organisations across the UK not tackling grey fleet are missing a huge opportunity to slash their business travel costs, cut harmful CO2 and NOx emissions, and improve road safety. Our best practice guide to grey fleet provides a comprehensive background on the issue and has tips on how to get to grips with grey fleeting, including:

  • Measuring your mileage
  • Setting a travel policy
  • Promoting other modes of travel.

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Alternatives to grey fleet use

Promoting alternatives to grey fleet use can provide business mobility solutions that are flexible, cost effective and environmentally friendly. A travel hierarchy is often the best place to start thinking about what alternatives might be more suitable.

Alternatives to grey fleet use
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Promoting alternatives to grey fleet use can provide business mobility solutions that are flexible, cost effective and environmentally friendly. Alternatives include car clubs, daily rental and company cars, and are described in our best practice guides below.

Car club best practice guide Salary sacrifice best practice guide Daily rental vehicles best practice guide Company cars best practice guide

Car clubs

A car club can deliver a lower cost per mile than the equivalent grey fleet or pool car journey, as well as significant time and cost savings from a reduction in business mileage. Additionally, car clubs can contribute towards meeting duty of care requirements and reducing your organisation’s environmental impact.

Salary sacrifice schemes for cars

Salary sacrifice has the potential to deliver cost savings to organisations, and offer a cost-effective benefit to employees. Learn more on the potential benefits, possible drawbacks and tips on how to operate an efficient, tax compliant scheme.

Daily rental

Integrating short-term vehicle rental into your sustainable transport strategy can offer reliability, flexibility and convenience in meeting your transport needs. 

Company cars

A company car is potentially very cost effective for both employers and employees, provided you make the right choice and avoid unexpected costs. In particular CO2 emissions have become a critical part of the process when selecting vehicles due to the tax cost both to the driver and the employer with National Insurance contributions linked to car CO2 emissions.

Public transport, walking and cycling

Using public transport as an alternative to driving has many advantages, including easier travel around congested town centres, plus potential health and money-saving benefits. Learn more about planning your journey.

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Government Fleet Innovators Group

Due to the scale of these impacts and the great potential benefits, EST believes that the profile of grey fleet needs to remain high. Energy Saving Trust, with support from Enterprise Rent-A-Car, recently formed the Government Fleet Innovators Group (GFIG). GFIG consists of fleet managers and decision-makers from public sector organisations that are looking to take a lead on promoting best practice to the broader public sector. This group will meet to discuss and formalise best practice when dealing with grey fleet, with an aim to sharing learnings more broadly on this site. 

For more information on the Government Fleet Innovators Group, our progress and how to be involved, bookmark this page to check for updates or email transportadvice@est.org.uk to express your interest.

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Case studies

Birmingham City Council

The council successfully reduced its costs, carbon emissions and the safety risk exposure of its grey fleet.

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