Current conditions are hampering take-up of salary sacrifice with many failing to fulfil their potential as a result, said the Association of Fleet Professionals.
The organisation says that although employees are keen in theory to join salsac schemes, the initiatives are being badly affected by a range of factors including highly restricted electric vehicle supply, rising lease costs and the state of the wider economy – as well as a lack of engagement by some providers.
AFP chair Paul Hollick explained, “We’re picking up a general sense of disappointment from our fleets around salary sacrifice. This isn’t to say that there aren’t successful salsac schemes out there but there seems to be a widespread agreement that many just haven’t taken off in the manner that employers had hoped thanks to a whole series of problems.
“Pricing, supply, the economy and service are all issues. These schemes are generally built on low personal taxation for electric vehicles and as everyone knows, lease rates for these cars have increased quite dramatically while waiting times continue to lengthen. This seriously affects the basic attractiveness of salsac for employees.”