Newcastle-upon-Tyne Hospitals NHS Foundation Trust has seen increased take up of its salary sacrifice car scheme.
Some 8% of more than 9,600 employees who are eligible for the scheme, which is provided by CPC Drive in partnership with Tusker, have taken up the option to purchase a car.
This equates to 645 cars being delivered to hospital employees since the scheme was launched in 2012 and the organisation has another 96 orders in the pipeline.
All cars are built to order and employees receive a package that includes servicing and maintenance, fully comprehensive car insurance, tyres, annual road fund licence and breakdown cover.
The organisation has opted not to set a carbon ceiling on the cars staff can choose but there is a financial disincentive to employees that select cars emitting more than 120g/km of carbon dioxide. This is to support the organisations’ carbon management strategy.
It communicates the scheme and its latest developments using a series of web bulletins, emails and payslip attachments.
A number of events have also been held, which more than 1,200 members of staff have attended.
Fiona Lee, salary sacrifice and staff benefits advisor at Newcastle-upon-Tyne Hospitals, said: “Since its introduction in September 2012, the car scheme has been an outstanding success.
“Some 645 cars have now been delivered to staff, with another 96 orders in the pipeline. This equates to a take-up of 8% of all eligible staff.
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“The salary sacrifice car scheme is open to staff across all Trust sites and eligible staff can sacrifice a proportion of their salary in return for a new car.
“The full national insurance contributions and pension contribution savings are retained by the Trust, which has led to significant savings which further contribute to patient care.”
In reality there is no pension saving seeing the salary sacrifice will reduce the pension paid by the employee will reduce due to their salary being lower. However, seeing most likely worker is on a final salary pension scheme the amount paid out on retirement is the same just the Government have not got the money in the pension pot to pay out. It is therefore costing the taxpayer money by this scheme
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