Society Car Benefit Scheme Policy

1.0 About this Policy

The purpose of this policy is to provide a consistent policy and procedure for colleagues who are offered a vehicle benefit as part of their terms and conditions of employment.

The policy sets out the rules and arrangements relating to the provision and use of company cars, vans and cars operated under the car allowance scheme. 

Colleagues looking to claim travel expenses or wishing to make bookings for business related travel, please refer to the Society’s Expenses Guidelines Policy and the Travel and Bookings Policy.

This policy does not form part of any colleague’s contract of employment and we may amend it at any time.

 

2.0 Useful Contacts

Society Reward and Benefits Team	car.fleet@midcounties.coop
Society Insurance Team	Insurance@midcounties.coop
Lex Accident Management for Society	0344 879 6001
Vehicles provided by Lex Autolease Vehicle Mechanical and Servicing needs	0344 824 0725 https://driver.lexautolease.co.uk
Society car running your vehicle support	https://driver.lexautolease.co.uk

 

 

3.0 Scheme Eligibility

Eligibility for the Society vehicle benefit is at the discretion of the Society, taking into account the following principles:

Car benefit available	Colleague Level	Reason
Society Car	All colleagues	Colleagues that drive at least 15,000 business miles per annum will be provided with a society car as it is an essential requirement of the role   Colleagues in receipt of a Car Allowance must transfer to a Society car if driving over 15,000 miles.
Society Car or Car Allowance	All colleagues	Colleagues who drive between 10,000 - 15,000 business miles per annum will be provided with either a Society vehicle or car allowance.
Car Allowance	Level 8 and above	A car allowance will be provided to all colleagues who are Level 8 and above, where it is considered an appropriate and necessary part of the remuneration package.
Car Allowance	Food	A car allowance will be provided to store managers within Food Management band 6 (in line with the Kronos hours band 6 in stores).

 

4.0 Scheme Rules

Colleagues who receive a Society car benefit and drive on Society business must submit a driver declaration form to insuranceteam@midcounties.coop. Driving licences for these colleagues will be checked at least on an annual basis. Colleagues agree that the Society can view a colleague’s up to date driving record using the DVLA database for the period that they are provided with a Society car benefit.

Colleagues that have a Society vehicle must also promptly notify the Society where their nominated driver(s) has been charged or convicted of any motoring offences.

Colleagues must comply with all relevant traffic laws and rules. Where a colleague incurs driving fines, including parking tickets, the responsibility for paying these (and any fines for non-payment) rests with the colleague. Disciplinary action may be taken against any colleague who incurs fines or penalties that are either not declared or not paid.

Colleagues who lose their licence or are suspended from driving for any period must immediately notify their manager, the Society Insurance team (insuranceteam@midcouties.coop) and the Reward and Benefits team (car.fleet@midcounties.coop).  Where a colleague is entitled to receive a car allowance but has been provided with a Society vehicle, they may be asked to return the Society vehicle for this period and opts to receive a car allowance in place of it.

Any car provided to colleagues will remain the Society’s exclusive property and may only be used by the colleague and any authorised drivers.

Colleagues should update HMRC with their Society car details where they change vehicle. 

The Society reserves the right to withdraw the Society car or car allowance if the colleague’s job role/mileage changes. In these circumstances, the colleague and their line manager will be consulted with before the proposed change and reasonable notice to transition the change will be discussed.

Each car benefit is signed off by the Executive Member of the business area. Colleagues will be notified in writing where they are eligible for the Society car benefit.

Colleagues must claim mileage expenses for business travel only via the Society’s Expenses Guidelines Policy. Annual business mileage is tracked via the expenses system and mileage driven over the rolling 12-month period will be used to determine the Society car benefit eligibility where relevant. 

Colleagues who choose to opt into the car allowance scheme may choose not to use a vehicle and use the allowance to fund other travel methods e.g. season tickets for public transport.

Part-time colleagues who are eligible to receive a car allowance, will receive the pro-rated allowance value appropriate to their grade. 

Colleagues in receipt of a Society car benefit who take maternity/ paternity/ adoption or shared parental leave will continue to receive the car benefit throughout the full period of their leave. 

The Society reserves the right to withdraw the benefit of a Society car or car allowance if a colleague is unable to work due to long term sickness or other circumstances which affect the colleague’s ability to perform their job.

If, for any reason, the colleague leaves the Society the Society car benefit scheme will cease with effect from the colleague’s date of termination.

 

5.0 Driver Responsibilities – Health, Safety and Security

Responsible behaviour towards the use of Society cars is essential and the Society encourages the highest standards of driving.

The following safety factors must be considered whenever driving a car:

• Hold a current driving licence.

• Always drive within road traffic laws, safely and responsibly.

• Follow the rules and guidelines within this policy.

• Immediately notify your line manager and the Reward and Benefits team of any driving accidents, cautions, summons or convictions for driving offences.

• Avoid driving excessive distances in one day and take regular and adequate breaks. The Highway Code recommends that drivers should take a 15-minute break every two hours.

• Read and adhere to the Alcohol and Drugs Misuse Policy and Smoke-free Workplace Policy at all times.

• Each Society car should display a no smoking sign in a prominent position in the vehicle. Colleagues can request one of these from the Reward and Benefits team. 

• A journey and all necessary equipment (including a high vis jacket and a small first aid kit) for the route should be well planned.

• Adverse weather conditions must be considered before setting off on a journey, please refer to the Adverse Weather and Travel Disruption Policy for more information.

• Do not use a hand-held mobile phone to make or receive calls whilst driving on Society business and avoid making changes to Sat Nav equipment whilst moving.

• Comply with the legislation regarding the wearing of seatbelts whilst driving and enforce the wearing of seatbelts for passengers in their vehicles.

• Colleagues must inform their line manager immediately of any health conditions that preclude or may preclude their ability to drive and perform their job.  If a colleague is uncertain about a health condition, they must ask their doctor and discuss with HR and, if required, report to the DVLA - visit the government's website by clicking here

• Colleagues must not drive where this has been advised by a medical practitioner or where the colleague is taking any medication that may cause drowsiness.

• Pregnant drivers should advise HR at the earliest opportunity so that a full risk assessment can be carried out for health and safety reasons and follow up assessments can be scheduled.

• Any items of value (including Society property such as tools, laptops and mobile phones) should never be left in a vehicle unattended.

• Vehicles should not be left unattended with the keys still inside the vehicle. 

Drivers who have 6 or more penalty points on their licence or have had an ‘at fault’ accident will be required to complete further training. This will be sent to by the Insurance Team.

Colleagues must have regular eye tests and be able to read a number plate at a distance of 20 metres. The Society provides a facility to have free eye tests every two years when driving is a key part of the role.  Colleagues should speak to their line manager should a test be needed. Colleagues must advise the DVLA of medical or eyesight conditions where necessary. If glasses are required for driving, they must be worn at all times while driving.

 

6.0 Car Allowance 

Eligible colleagues may opt to take a taxable car allowance and receive a salary supplement in accordance with the current car allowance bands, that they may use towards funding the provision of a car, or other travel methods. Where this is authorised, the allowance will be paid along with the colleagues four weekly salary. 

Colleagues who are eligible may opt to change to the car allowance option at the end of the existing lease period on their Society vehicle. Only in exceptional circumstances will a colleague be able to switch before this period. Colleagues must submit a car allowance request form to the Rewards and Benefits Team for a request to be considered.

The amount of car allowance is defined by the role level under the career framework. The current amounts are set out in the following table but may change from time to time. Where a colleague is entitled to receive a car allowance it will be specified in their offer letter and/or contract. Where that differs to this table, the offer letter and/or contract will take precedence.

Level	Car Allowance Annual	Car Allowance monthly	Car Allowance 4 weekly
1-6	4200	£350.00	£323.08
7	5400	£450.00	£415.38
8	6600	£550.00	£507.69
9	8400	£700.00	£646.15
10	10800	£900.00	£830.77
11	12000	£1,000.00	£923.08

 

7.0 Conditions

Where a colleague has a choice to receive a car allowance or be provided with a Society vehicle and opts for the Society car allowance this will usually remain in place for a minimum of 12 months. Where a colleague opts for a Society vehicle, this will remain in place until the end of the lease arrangement for that Society vehicle. In exceptional circumstances, colleagues may switch schemes earlier in agreement with the Reward and Benefits team. 

When a colleague who receives a car allowance is promoted to a new Career Framework Level, any difference in the car allowance will be effective from the date of promotion. 

The following conditions must be adhered to:

• Colleagues must provide a vehicle suitable for business use (the Society reserves the right to disqualify any car used by a colleague that is considered unsuitable or impractical for business use) and provide an alternative vehicle when their vehicle is temporarily off the road and they are required to travel on Society business.

• Colleagues will be responsible for ensuring their vehicle has a current MOT certificate, is taxed and has the correct insurance cover including business use.

• The vehicle must be roadworthy, in good condition and well maintained. Regular essential safety checks should be carried out to ensure that areas such as tyres and lights are well maintained. A service and MOT history must be available to the Reward and Benefits team on request.

• Colleagues who have a car allowance are not permitted to hire cars for business use at Society expense.

• Colleagues must submit business mileage expense claims in line with the Society’s Expenses policy.

• In circumstances where a colleague received a car allowance and has a current personal lease, but exceeds 15,000 business miles per annum, the colleague will be required to transfer to a Society vehicle at the end of their personal hire agreement.

 

8.0 Sustainability and the Environment

At its heart a true co-operative organisation is socially responsible and effectively engaged with the communities it serves.  Through our Social Responsibility Value, we ensure that we reflect our responsibilities to the wider community in the way we conduct our business.

Concern for the environment is a key element of our social responsibility agenda and we believe that being environmentally responsible plays an important part in our Society’s overall success.

We recognise that there are physical limits to our planet’s resources, and that any business activity that exceeds these limits is unsustainable in the long term.

In line with our sustainability and environmental goals, the Society have updated the vehicle choice so that only Electric (EV) and Hybrid (HV) or Plug-in electric Hybrid (PHEV) vehicles will now be available to order. By 2025, we expect there will be further significant developments in the electric car market and supporting infrastructure and our goal is to achieve a carbon neutral company car fleet by 2025.

The selection of cars will also be limited to a maximum CO2 of 120g/km (reduced from 125g/Km).

We all must play our part to tackle climate change and support the UK to achieve its low carbon targets.  In order for our Society to achieve its ambitious Greenhouse Gas emissions reduction targets, support from our colleagues in championing Electric/Hybrid vehicles in line with this policy is required. 

This policy also provides further information and guidance on whether you should select an EV or PHEV (see appendix A and the Lex Autolease – Fuel Type Decision Tree)

 

9.0 Considering an Electric Vehicle or Plug-In Electric Vehicle

This policy allows the option of a pure electric as well as hybrid and plug-in electric vehicles. These vehicles greatly reduce the environmental impact on climate change and urban air quality, as well as offering a number of benefits to company car drivers including:

• Company Car tax advantages

• Reduced personal mileage costs

• Free parking and charging (in some instances)

• Quiet and relaxed motoring, no gear changes and smooth acceleration

For Plug-In Electric Vehicles It is essential that the vehicle is driven in electric mode as often as possible as this is their most efficient mode. If they are purely driven in diesel/petrol mode it is likely their fuel economy will be worse than traditional diesel/petrol cars. Expense claims for mileage will be monitored to ensure a colleague is driving in electric mode.

The Electric vehicle market and supporting infrastructure is still subject to rapid development. Over time as plug-in vehicles become more affordable more models will be introduced as the Society and the UK move towards a zero-emission future as set out by the UK Government in its “Road to Zero” Strategy.

 

10.0 Domestic Charging Points

If colleagues choose a fully electric (EV), or plug-in Hybrid vehicle (PHEV), then the purchase and the installation of the domestic charging points is the colleague’s responsibility, prior to taking delivery of the new EV/PHEV vehicle. Lex Autolease recommend Pod Point. More details can be found on their website www.pod-point.com

The charging point will become the colleagues' asset to use on a vehicle that belongs to the Society, however the charging point can be used for other electric vehicles that may be brought during/after their company vehicle contract.

The Government are currently offering grants towards the costs if the domestic charging points, visit the government's website by clicking here

 

10.1 Domestic Charging Point Loan Request

There is an option to apply for an interest-free loan for a home charging point through the Society.

The Society at its discretion will offer a 10 pay periods interest-free loan to help fund the initial purchase of a domestic charging point for Electric Vehicle/Plug-in Hybrid Vehicle. Any missed payments will incur the payment range to be extended until final amount is paid. You must have successfully completed your probationary period and not be serving contractual notice.

The maximum available loan you many apply for is £1200. The loan can only be used for a complete or partial contribution to a domestic charging point and you will need to provide confirmation of your domestic charge point order and installation with your application. If any of the loan has been partly or fully used for any purpose other than funding a domestic charging unit, the loan will be partially or fully recovered from your next pay in the next available pay period.

The loan will be deposited into the bank account into which your normal salary is paid within 14 calendar days of receipt by payroll.

Should your employment be terminated (for any reason) prior to repayment of the loan, then you will be required to repay the outstanding loan balance in full, which will be deducted wherever possible from your final pay. If the Society is unable to recover the entire balance from your final pay, you need to agree other arrangements with us.

Please complete the application form if you wish to apply for this loan. Once completed the form needs to be uploaded to Payroll via a Service Now request.

 

11.0 Society Charging Policy

Charging your vehicle on Society premises can increase the risk of slips, trips and falls, fire electrocution if not managed correctly. EVs and PHEC’s can only be charged on site under the following conditions:

• They must only be charged at designated electric-vehicle charging points and parking bays. No other electrical supply may be used for charging vehicles.

• Vehicles must be plugged in so that cables do not cause trip hazards.

• Electric parking bays must only be used for the purpose of charging your pure electric or plug-in hybrid. Once a vehicle has reached its charge it must be moved to another parking bay (typically an 80% charge takes less than 3.5 hours on a fast charger).

• Do not unplug any vehicles to charge your own vehicle.

 

12.0 Vehicle Allocation and Delivery

There is no contractual right to a specific type, make or model of vehicle and cars will be allocated as appropriate to the relevant job level and in line with the current vehicle allocation list. The driver portal will allow you to view vehicles within your allocated job level, colleagues must contact the Reward and Benefits team (car.fleet@midcounties.coop) to access the driver portal.  Where a colleague chooses a vehicle from the car level below their entitlement, the Society will pay a trading down allowance. The trading down allowance amount will be 50% of the difference between colleague’s eligible car band allowance and the car band allowance chosen by the colleague.

On the portal colleagues will be able to view the various manufacturers and model ranges available within your grade. Colleagues will also be able to view cars in the grades below, should you wish to trade down.  The Society reserves the right to amend the list in any way at any time without notice. There may also be a requirement for colleagues to complete the term of a car currently within the Society’s fleet.

Please note colleagues cannot trade up their Society car to a higher grade under any circumstances.

The following vehicles are excluded:

• Two seater cars

• Off road vehicles

• Convertible models with a soft top

• Three wheel cars and motorcycles

• Commercial vehicles including vans, trucks and limousines

• Any vehicle with long lead times

All colleagues are required to complete and sign the driver declaration form prior to being issued with a Society car.

When a colleague is entitled to a vehicle, they will be allocated an existing Society car in the first instance, if one is available in the same or next car level. In the event that a higher level Society car is allocated, colleagues will not be required to contribute to any upgrade or extras already on the car but should be aware that they may be liable for additional taxable benefit charges. If a Society car is not available, hire or mini-lease cars will normally be provided for the probation period. Once a colleague has successfully completed their probation period and who remain in a hire or mini lease vehicle, the Society will look to allocate a suitable existing lease car or order a new Society car. 

When a colleague is promoted, they will normally retain their existing car (if applicable) until the end of its normal replacement period, unless another car from the appropriate job level is available.  The approval of the internal Head of HR Support Functions, Reward and MI, is required prior to any re-allocation of a Society car from one driver to another. 

The, Head of HR Support Functions, Reward and MI, along with the relevant Manager, has the right to review a colleague’s use of Society cars and may withdraw their right to a Society vehicle in cases of misuse or neglect.

 

13.0 Whole Life Costs

Level	Whole Life Cost Benchmark for Car Orders
1-6	£660
7	£750
8	£890
9	£1,010
10	£1,180
11	£1,450

These allowances have been updated in April 2021 and it is expected that they will not be reviewed again until 2025.

The Whole Life Vehicle Costs (this is the total cost of ownership over the life of a fleet vehicle) have increased to support the choice of vehicles.

 

14.0 Returning/ Replacing a Car

Society cars will typically be replaced after a 4-year lease period. Replacement vehicles may be ordered around four months prior to the end of the lease period to ensure delivery of the new car as close as possible to the lease expiry date. The colleague will be sent an e-mail request to login to the driver portal to begin the process. 

Colleagues must notify the Reward and Benefits team if their mileage changes drastically to enable the car to be effectively managed through the leasing company.

All new or replacement cars require line manager and COO, approval before the order is placed. 

Prior to a replacement car being ordered or returned to the Society an inspection of the current car must take place by the colleague’s line manager to ensure that it has been well maintained (including regular servicing), is damage free and the interior and exterior is clean and tidy.  A vehicle inspection report (provided by the Reward and Benefits team) must be completed, approved by the colleague’s line manager and returned to the Reward and Benefits team.  Any repairs required for any damage outside of the fair wear and tear guidelines will be recharged to the department cost centre and the colleague. This will not be covered by the Society’s vehicle insurance.

 

15.0 Use of a Society Car

The Society Car is insured and may be used for business purposes within the Society and for social, domestic & pleasure. The Society car must not be used for any business not connected with the Society.

Under no circumstances can a Society car be used for hire, driving tuition, racing, pace making, rallies, trials, competitions, motor trade purposes or reward activities.

In respect of business use, vehicles are only insured for Colleague business, however, cover has been extended to include The Executive and those Colleagues in level 8 and above in the Career Framework who serve on board/committees of third-party organisations as part of Midcounties Ambassador Programme. 

The car may only be driven by the following authorised drivers:

• The person to whom the car is allocated

• Up to two members of the colleague’s immediate family will be entitled to occasionally drive the Society vehicle, subject to them holding a valid driving licence, Society approval and completion of the Driving Licence/ Nominee Mandate Form.

• Any other authorised Society car driver with Society approval 

The Society car drivers will be responsible for their named drivers’ actions and the conditions of use will also apply to these drivers.  The Society reserves the right to refuse such a request or withdraw use by a named driver.

Personalised registration numbers on Society vehicles are not permitted.

 

16.0 Travel Abroad

Colleagues can use their Society car for travel outside the United Kingdom. The relevant forms can be obtained from the Insurance Team.  

The request must be sent at least 1 month before travelling with the following details: 

• Travel start and end date

• Full name of driver

• Vehicle registration number

• Make of vehicle

• Type of vehicle i.e. car, van 

A green card will then be issued. 

Driving laws and regulations vary across Europe and often differ to those in the UK. Before colleagues go abroad they should check the up to date rules that are applicable to each country they are travelling through. The Foreign and Commonwealth Office produces advice on a country by country basis which can be found in the ‘Travel Advice’ section - visit the government's website by clicking here.

In particular certain European countries impose obligations on you to carry or have on/in your vehicle various items or equipment, for example: a first aid kit, fire extinguisher, warning triangle, reflective jacket, headlamp beam reflectors and spare bulbs. Further information on the requirements for various countries can be found on the RAC website , although we advise that you pack these important items regardless of where you are travelling.   

Please note that colleagues are responsible for checking the legal requirements of each country they will be visiting or driving through and ensuring compliance.

Any breach of this procedure could result in disciplinary action.

 

17.0 Service, Maintenance and Repair

Colleagues are personally responsible for periodic maintenance and vehicle checks, in line with manufacturer guidelines. Colleagues should visit the appropriate Fleet provider for their vehicle for more information on running the Society vehicle, to report an incident or book a service, repair and MOT.

Failure to comply with these requirements leads to excessive costs to the Society when cars are returned at the end of their lease and may lead to disciplinary action being taken if a colleague consistently fails or refuses to ensure these checks are carried out.

It is the legal responsibility of the driver to ensure the car is safe to drive before use, however short the journey, and ensuring that any issues are rectified as soon as possible.

Tyres, brakes, glass, engine fluids, lights, servicing, washer fluid, tyre pressure and tread depth, MOT and manufacturer recalls are all expected to be dealt with periodically by the colleague using the leasing company maintenance support where required.

The colleague has a responsibility to drive safely and responsibly at all times and the Society reserves the right to charge a colleague for damage caused to vehicles as a result of persistent negligence and lack of care. Colleagues are responsible for assessing the risks for each journey prior to the journey starting. 

It is also the responsibility of the colleague to maintain the general appearance of the Society car (including keeping the interior and exterior of the car clean and tidy) in accordance with our professional image and to ensure that the overall integrity of the car’s safety systems and performance are not abused or mistreated so as to endanger passengers/any driver. 

The Society reserves the right to charge the colleague to whom the car has been allocated, if there are any exceptional costs levied on the Society due to non-compliance with servicing schedules or due to lack of proper care being taken of the car.  Any such costs will be deducted from the colleague’s next salary payment. 

The above principles of maintaining the appearance and condition of a car also apply to those who opt for the car allowance and provide their own car. 

The Society reserves the right to inspect a Society car or a personal car owned by a colleague in receipt of car allowance at any time, to ensure compliance with the expected standards of maintenance, repair, and cleanliness.

 

18.0. Accidents and Incidents

Accidents and damage to Society vehicles must be reported immediately to Lex Accident Management, who will then explain the necessary course of action to be taken. The telephone number is 0344 879 6001. Colleagues must also report any accidents to their line manager. 

In the case where authorised drivers are over 25 the excess of £500 will be applicable for any incident. If the driver is over 25 but has not held a full licence for 12 months the excess of £675 will be applicable. An increased excess of £750 applies for drivers under 25 years of age. Please note wear and tear is not included under the Society vehicle insurance.

 

19.0. Additional Support 

If you have any questions regarding this policy or require additional support, you should speak to your line manager. Alternatively, you can contact the Reward and Benefits team on car.fleet@midcounties.coop.

Visit the driver services portal on https://driver.lexautolease.co.uk for further support regarding your Society Vehicle, including but not limited to: a driver guide, FAQ’s and a number of general enquiries factsheets.  

 

Policy name:	Society Car Benefit Scheme Policy	Date of last review:	October 2021
Policy owner:	HR	Issue number:	HR-CF-002