44% of businesses to review company car policy within a year, WTW finds

A study conducted by WTW has found that 44% of UK businesses intend to review their company car policy within the next year.

Four in five businesses (84%) said the review would ensure the policy remains competitive and in-line with market practice.

Just under a third (30%) of businesses intended to reduce costs by reviewing their company car policy.

WTW said this was driven by increasing vehicle prices, as well as maintenance and financing costs, tax complexity and supply chain disruption.

Changes were also driven by sustainability, with 30% of businesses intending to make policies more environmentally friendly (30%) and 27% intending to introduce more environmentally-friendly cars.

Across WTW’s global study, 25% of businesses offered a company car, 16% offered a car allowance, 25% offered both and 34% offered no car benefit.

Lisa Shaw, rewards data intelligence lead at WTW, said: “Company cars are no longer a static benefit. They now sit at the intersection of cost, tax, sustainability, employee experience and reward governance.

“For UK employers, the challenge is not simply whether to offer a company car, but how to design mobility policies that are fair, transparent, affordable and fit for a low-carbon future.