Support services - Vehicle lease schemes policy (T07106)

1.0 Summary of Changes

1.1 This procedure/SOP has been amended within paragraph 3.1.2.1 and para 3.4 to increase the Superintendents contribution in Kent, reduce the police staff allowance in Kent and to introduce a salary sacrifice scheme in both Kent and Essex.

2.0 What this Procedure/SOP is About

2.1 This procedure outlines the lease schemes available to substantive Chief Superintendents, Superintendents, senior police staff, those eligible for the employee lease scheme and the Salary Sacrifice scheme available to all staff.

Compliance with this procedure/SOP and any governing policy is mandatory.

3.0 Detail the Procedure/SOP

3.1 Superintendents and Senior Staff Car Scheme

3.1.1 Eligibility

3.1.1.1 This scheme is open to officers of the substantive rank of Chief Superintendent, Superintendent and police staff Grade J and above (Kent) Grade SPS6 (Essex). Eligible officers may lease a vehicle for which both they and the Force contribute. A salary deduction will be made for the leaseholder's contribution. The sum will be reviewed every third year in conjunction with the Superintendents’ Association Executive.

3.1.1.2 Where a vehicle is retained for secondment or attachment duties outside the force, the full cost of the lease will be borne by the hosting authority unless there is an overriding operational requirement (such as performance of a command role in Force) agreed by a Chief Officer.

3.1.1.3 There is no automatic right to a new lease vehicle. Those on promotion or transfer will take on any existing leases before ordering new vehicles (with reasonable allowances for the business / personal use balance). Transport Services will manage the process in consultation with the leaseholder.

3.1.2 Vehicle Choice and Cost

3.1.2.1 In Kent, the Superintendents force allowance will not exceed £390 (£380 from 1st April 2025 and £370 from 1st April 2026) per calendar month to provide parity with the average cost of essential user allowance. In Essex, the allowance is £450 per month. In Essex, Superintending ranks will pay £140 per month as a direct contribution to the lease (capping the total lease cost limit at £590 per month) and in Kent Superintending ranks will pay £150 per month from 1st April 2024, £160 from 1st April 2025 and £170 from 1st April 2026. Superintendents may increase their personal contribution should their vehicle choice exceed the capped limit. The increase in personal contribution may make a vehicle difficult to reallocate so the Superintendent will be liable for any early termination fee. In Kent, the police staff allowance is capped at £400 but they may also make an additional personal contribution to source an electric vehicle, with the liability for any early termination fee. In Essex, the police staff allowance is capped at £700 per month for a lease vehicle and £450 should the cash allowance be preferred. Personal contributions recognise the private use of the vehicle within the business/personal lease arrangement.

3.1.2.2 Superintending ranks and police staff will have personal choice of vehicle as long as it is suitable as an operational or business platform. No convertible, sports cars or two door models are permitted.

3.1.2.3 There is no CO2 limit, as benefit in kind taxation will impact on vehicle emissions. Petrol, diesel, hybrid or electric vehicles may be selected. The leaseholder has responsibility for any personal tax liability that comes with the provision of a lease vehicle.

3.1.2.4 There will be an agreed list of optional extras e.g. satellite navigation that supports business requirements. The cost of additional optional extras e.g., cycle carriers, roof boxes, boot liners etc., will be met by the leaseholder as part of their monthly contribution. Transport Services will agree exceptions on a case-by-case basis.

3.1.2.5 All leases will be for four years and a minimum of 15,000 miles per annum. There will be an option to renegotiate mileage limits, within the life of the contract, if there is a change in role or business mileage requirement. At the end of contract, the leaseholder will be liable for excess mileage charges where Transport Services have not been consulted on and agreed a business use mileage variation.

3.1.2.6 Transport Services will monitor usage and highlight any potential for under/over mileage against the contracted allowance. The leaseholder will provide a monthly odometer reading to Transport Services.

3.1.2.7 No blue lights or two-tone horns will be fitted to vehicles. A mobile blue light will be provided to Superintending ranks to assist with static scene protection at spontaneous events.

3.1.2.8 Should the leaseholder ask for an early contract termination; Transport Services will seek to place the vehicle with another leaseholder. Where this is not possible, the leaseholder will be liable for the cost of the termination and any excess mileage (if not agreed as a change in business use). The leasing contract will reflect agreement that a deduction will be made from salary/remuneration.

3.1.3 Fuel

3.1.3.1 Fuel will be paid for by the leaseholder. It may be paid via a corporate credit card (KENT ONLY) on the basis that each month the leaseholder will repay all fuel costs and be reimbursed via Payroll for any business mileage. The leaseholder will report mileage each month to Finance with a breakdown of business and private mileage. Please see T 07102 Procedure/SOP – Fuel and Electric Vehicle Charging Management regarding the charging of Electric or Hybrid vehicles.

3.2 Employees' Lease Scheme (Kent Only)

3.2.1 Eligibility

3.2.1.1 Police and police staff will be eligible for participation in the employee lease scheme where it is more economical when compared to other allowances. The Director of Support Services will consider eligibility where there is a strong recruitment / retention need.

3.2.1.2 The lease period would be for four years with a maximum mileage of 20,000 per annum. This may be adjusted if efficiency can be demonstrated. The personal contribution for the vehicle will be 33% of the annual lease cost, which will be held for the period of the lease, unless there is a price variation in the vehicle excise duty or the rate of VAT.

3.2.1.3 A business case must be completed and endorsed by the Head of Department or Divisional Chief Superintendent. The business case must clearly demonstrate efficiency or a recruitment / retention issue. In the case of efficiency, the Head of Department or Divisional Chief Superintendent must confirm that funds will be transferred to the centralised lease budget to meet the costs. This business case will be considered by the Director of Support Services and if approved the vehicle will be supplied via the Force lease car contract.

3.2.1.4 The vehicle will be limited to a small low emission or electric saloon or estate. Transport Services will advise on the most efficient models at the time of request. No convertibles, coupes or two door vehicles will be approved. No blue lights or two-tone horns will be fitted to the vehicle.

3.3 SECTION 3.3 APPLIES TO BOTH SUPERINTENDENTS AND SENIOR STAFF AND EMPLOYEE SCHEMES

3.3.1 Provision of Vehicles

3.3.1.1 It is the responsibility of the employee to arrange a demonstration or test drive should they be required. These are personal arrangements for which the Force has no liability.

3.3.1.2 Following approval to lease, Transport Services [email protected] will arrange for the leaseholder to have a log in to research vehicle choices.

3.3.1.3 The lease agreement is legally binding between the force and the leasee. At the expiry of the lease period, the leaseholder can apply to purchase the vehicle based upon the valuation provided by the supplier.

3.3.1.4 The leaseholder is responsible for all arrangements relating to personalised number plates at the start and end of contract. Any delays in returning the vehicle, that give rise to costs, will be charged to the leaseholder.

3.3.2 Accidents and Insurance

3.3.2.1 All accidents must be reported within 24 hours via the electronic Police Vehicle Incident Report (PVIR) available to all staff via the Transport Services website or Kent’s InSite pages under Tools.

3.3.2.2 The Force provides comprehensive insurance cover (excludes the Salary Sacrifice Scheme) with a £250 excess for each claim. Windscreen repair/replacement is £50.

3.3.2.3 The Excess charge for a named driver is £400. Named drivers under 25 years of age must have an Institute of Advanced Motoring (or similar) qualification to qualify for use. Any other driver must be able to evidence 18 months driving experience. Learner drivers are permitted but must be under the supervision of the leaseholder.

3.3.2.4 The lease hire agreement stipulates that if a claim is made from insurance that cannot be recovered from a third party, the leaseholder is required to pay the policy excess.

3.3.2.5 If a lease vehicle is being driven by a force employee (other than the leaseholder or a named driver) on a business journey, and they incur accident damage, then they or the leaseholder are not liable for an excess payment. Excess charges are subject to change following consultation with Insurance Services.

3.3.3 Servicing and Maintenance

3.3.3.1 Leaseholders are responsible for ensuring the vehicle is in a safe and roadworthy condition in line with T 07101 Procedure/SOP - Vehicle Maintenance, especially where the vehicle may be shared with named drivers.

3.3.3.2 In all cases, the leaseholder is responsible for arranging servicing and maintenance direct with the leasing company and in accordance with their lease agreement.

3.3.3.3 The leasee must provide a monthly odometer reading to Transport Services to support the monitoring of the contracted mileage allowance.

3.3.4 Motoring Offences

3.3.4.1 Any speeding or parking fines will be the responsibility of the leaseholder. The supplier will charge a handling fee for redirecting documentation. The leaseholder will pay any fees through a salary deduction.

3.4 Salary Sacrifice Scheme

3.4.1 Eligibility
The force offers a salary sacrifice vehicle lease scheme managed through a contracted Broker. The scheme is available to both police officers and staff.

The scheme is a staff benefit made through salary sacrifice, rather than role specific. You may not access a salary sacrifice lease vehicle if you already have a vehicle through a different force leasing scheme.

To access the scheme, staff and officers must be out of their probationary period, not subject to any disciplinary or competency processes and the salary sacrificed must not take the employee's gross salary below the minimum/living wage. There is a restriction of one vehicle per employee.
The lease agreement is legally binding between the force, the contractor and leasee. Prior to signing the contract, the leaseholder is advised to read all contractual documentation.

3.4.2 Vehicle Choice and Cost
The salary sacrifice vehicle will be limited to a maximum of 50g/km of CO2 or less. Choice is restricted to those vehicles available through the Force’s supplier. The cost of the lease covers road tax, fair, wear and tear, tyres and vehicle recovery.
Some vehicle models may not be available to staff that would qualify to take part. This is to ensure the force discharges its duty of care ensuring that no member of staff’s remuneration falls below the national minimum living wage. Staff will not be allowed to take part if the total value of salary sacrifice takes them below this limit.

The leaseholder will sacrifice salary from gross pay. Potential leaseholders are advised to fully research their tax liability against HMRC guidance. Benefit in Kind rates are available through HMRC and are subject to change.
Police Staff should consider the implications for their pensions which may incur reduced contributions.
The lease is subject to an annual contracted mileage, which must be an accurate prediction. Leaseholders exceeding the contracted mileage will incur penalty charges, which will be collected from salary.

Courtesy cars are not available during the order process. It is not possible to cancel an order once accepted as termination charges will apply. Deductions will be taken from the first available payroll following delivery.

In the event of resignation, career break, redundancy or retirement a termination charge to end the contract is payable by the employee. Those on long-term absence or maternity leave, can continue to make payments whilst they are still being paid. The employee's salary will continue to be reduced whilst receiving sufficient pay.

Should the leaseholder be unpaid, payments will be collected manually, although these will not attract any taxable benefits.

3.4.3 Insurance
Insurance will be provided by the contractor as part of the monthly lease cost. There is not an option to opt out of this mandatory requirement.

3.4.4 Provision of Vehicle
The contract is for a three-year period. Transport Services will place the order and pay the monthly contractor invoice. Vehicle research, delivery, maintenance and return will be managed direct between the leaseholder and contractor.

The leaseholder is responsible for all arrangements relating to personalised plates at the start and end of contract. Any delays in returning the vehicle that give rise to costs, will be charged to the leaseholder.

3.4.5 Motoring Offences
Any speeding or parking fines will be the responsibility of the leaseholder. The supplier may charge a handling fee for redirecting documentation. The leaseholder will pay any fees through a salary deduction.

4.0 Equality Impact Assessment

EIA – April 2021

5.0 Risk Assessment

5.1 There is an organisational risk of loss of reputation if this procedure is not adhered to. Users must be aware that vehicles and associated equipment are regarded as ‘work equipment’ under the Provision and Use of Work Equipment Regulations 1998 (PUWER)

5.2 Under the Health and Safety at Work etc., Act 1974 and the Management of Health and Safety at Work Regulations 1999, both Forces have a duty to protect the health and safety of its staff and others who might be affected by their work activities and to carry out risk assessments in relation to those work activities that staff are required to undertake, to provide a safe place of work and suitable, safe work equipment.

5.3 The Health & Safety at Work Act 1974 requires an employee to co-operate with the employer to enable them to comply with meeting these statutory duties and places a duty on the employee to take reasonable care for the health and safety of themselves and others who may be affected by their acts or omissions. No person shall intentionally interfere with or misuse anything provided in the interests of health and safety

6.0 Consultation

6.1 The following have been consulted during the formulation of this document:
• Essex
o Chief Officers Essex
o Unison
o Police Federation
o Essex Diversity and Inclusion Manage
o Health & Safety
o Strategic Change Team
o PSD D/Superintendent
o Risk
o Policy
o Superintendents Association
o Strategic Force Crime & Incident Registrar
o Information Management
o DPO
o Corporate Finance
o HR
• Kent
o Chief Officers Kent
o Head of Transport
o Superintendents Association
o Transport Services Delivery Manager

7.0 Monitoring and Review

7.1 This procedure will be reviewed every two years to ensure it remains accurate and fit for purpose.

8.0 Governing force policy

Related force policies or related procedures (Essex) / linked standard operating procedures (Kent)
• T 0710 Policy – Vehicle Fleet Management
• T 07102 Procedure/SOP – Fuel and Electric Vehicle Charging Management
• T 07101 Procedure/SOP - Vehicle Maintenance

8.1 Data Security

8.1.1 Essex Police and Kent Police have measures in place to protect the security of data in accordance with our Information Management Policy – W 1000 Policy – Information Management.

8.2 Retention & Disposal of Records

8.2.1 Essex Police and Kent Police will hold data in accordance with our Records Review, Retention & Disposal Policy – W 1012 Procedure/SOP - Records Review, Retention and Disposal.

8.2.2 We will only hold data for as long as necessary for the purposes for which we collected.

9.0 Other source documents, e.g., Legislation, APP, Force forms, partnership agreements (if applicable)
None