Leeds Community Healthcare NHS Trust Tackles ‘Grey Fleet’ Costs with Tusker and CPC Drive

Leeds Community Healthcare NHS Trust (LCH) has responded to rising costs and associated risks of its grey fleet by improving their salary sacrifice car scheme, in partnership with Tusker and CPC Drive, with increased subsidies.

Beyond resolving the grey fleet issue, the scheme has four other goals: to update its transport benefit offerings, to support the Trust’s commitment to sustainability by reducing employee emissions, to uplift its workforce’s financial wellbeing while enhancing inclusion by enabling more employees to gain vehicle access.

The challenges

A grey fleet – where employees use their own cars for work-related travel – is a challenge at LCH, bringing with it huge costs as well as duty of care risks. The Trust recognised the need to address the unsustainability associated with this fleet, as well as the issues stemming from business mileage reimbursement – a cost surpassing £1.5 million in 2023-2024.

Additionally, increasing numbers of people in the workforce, especially those on lower salaries, were effectively excluded from previous salary sacrifice schemes due to HMRC legislation surrounding the National Minimum Wage.

Complicated tech and platforms, as well as limited vehicle choices, combined to make the previous scheme unattractive to staff, impacting uptake and minimising benefits to the Trust.

Adoption and engagement

LCH collaborated with Tusker and CPC Drive to design and implement a new, innovative solution.

The improved scheme was launched to employees in November 2024. The Trust has a workforce of over 3400 staff and in the first month, 1,039 employees were eligible based on business mileage criteria. While uptake is still in the early stages – and individuals only change their cars when it’s right for them – interest has been considerable.

The Trust predicts high adoption rates as awareness spreads. Indeed, employees are welcoming the accessibility and value of the scheme, especially those who had previously been unable to access vehicle benefits due to pay thresholds.

Employee financial wellbeing, greater inclusion

By incorporating a gross monthly employer contribution of £113 (calculated based on grey fleet mileage trends and Agenda for Change reimbursement rates), the Trust has made it possible for more employees to access a car through salary sacrifice, including NHS Band 4 staff earning £26,530 annually.

This means the new scheme offers greater employee inclusion as far more can access a car who, previously, would not have been able to, particularly those in lower pay brackets.

The scheme also provides flexibility and considerable tax savings for individuals as a salary sacrifice car includes insurance, maintenance and lifestyle protections.

Reducing employee emissions

The rollout of the new scheme also encourages employees to ‘go green’, as it provides greater and simpler access to electric and hybrid transport solutions.

Simultaneously, improved uptake of EVs reduces the Trust’s Scope 3 emissions so its sustainability credentials are improving.

Grey fleet predictability

By moving employees out of the grey fleet and into structured, supported car provision, LCH expects to see significant savings over time.

The scheme also eases the process for the Trust, enabling greater financial control and predictability while creating national insurance savings to keep the scheme cost neutral.

Conclusion

LCH NHS Trust’s adoption of a new subsidised salary sacrifice car scheme sets a new precedent for NHS transport benefits. It creates financial ease for employees and greater inclusivity, while promoting greener strategies.

The driver portal also offers an engaging experience for employees, greatly improving user-friendliness compared to the previous portal, plus it provides features such as short-notice car availability and real-time support, encouraging employee interest.

With Tusker and CPC Drive as strategic partners, the Trust is modernising its benefit offerings, reducing administrative work, addressing compliance and reputation risks, while adapting to the changing needs of employees – and the environment.