Nottingham Council launches car salary sacrifice scheme with Tusker
Nottingham City Council, which provides a range of services to local people, has implemented a new car salary sacrifice scheme for its eligible 7,000 employees. Its new ultra-low emission vehicle scheme, delivered in partnership with Tusker and launched last month, enables the council to support both employees and the council financially while promoting greener travel choices.
The salary sacrifice scheme enables eligible employees to access a new electric or ultra-low emission vehicle (ULEV), directly from their salary. It includes insurance, servicing, maintenance and breakdown cover for fixed, cost-effective motoring.
Lynn Griffin-Pearce, Nottingham City Council’s HR reward consultant, said: “Our new benefit provides a cost-efficient and environmentally responsible alternative to traditional vehicle ownership, and is supported by competitive benefit-in-kind rates and optional access to a nationwide public charging network.
“We considered two key elements: how much a scheme could financially benefit our employees, as well as how it generates National Insurance savings for the council.”
Reducing financial risk
Nottingham City Council is enabling eligible employees to access new hybrid or electric vehicles, as well as optional access to charging points around the country. Additionally, employees can choose to take the car over periods of between 24 and 60 months, creating choices to reduce monthly amounts.
Kara Harrison, HR reward advisor at Nottingham City Council, explained that preparation and setting clear guardrails was essential for the scheme, to reduce the financial risk to the Council.
“Our payroll, finance, and legal teams were all involved to ensure scheme compliance. It had to be fully robust pre-launch for all parties. Beyond Tusker’s protections, we also ask that managers approve the cars to help protect against people leaving or retiring.”
The council also benefits from Tusker’s Lifestyle Protection programme to protect employees and employers from early termination fees from unforeseen circumstances, perhaps maternity, long-term sickness or death in service.
Early successes
The launch was supported by Nottingham’s communication team as well as Tusker’s ready-made videos, FAQs and launch materials, all placed on the council’s intranet. These not only minimised questions to the HR team (to just one) but resulted in 216 sign-ups in a single day, and 21 vehicle orders in the first week - one third of its annual target.
Building on this early success, a pre-loved car scheme will also be introduced, providing employees with an additional, cost-effective route into low-emission and electric vehicles. This extension to the offer will increase affordability and widen access across the workforce.
Cheryl Clements, head of business development at Tusker, explained: “HMRC has set clear guidelines that protect car salary sacrifice schemes for the future, plus there are robust systems and guardrails to protect employees and employers. The green movement makes complete sense when a council such as Nottingham is so focused on building a sustainable, inclusive city.”
Supplied by REBA Associate Member, Tusker
Tusker is the UK’s leader in salary sacrifice cars. Part of Lloyds Banking Group, it has more than 15 years’ experience in offering an affordable way for employees to drive a new, fully insured, and maintained car. Its scheme, which is available to over 1.8 million UK employees, offers a range of options, from pure electric cars to hybrids and even traditional petrol and diesel vehicles. It provides a tailored scheme for organisations’ individual needs.
