How can we save money?

The average mileage of an NHS grey fleet car is higher than a lease car; this is because the allowances paid to regular car users are significantly higher and there are no incentives to either reduce mileage or join the lease car scheme. 

Based on an average 4,000 miles per annum a typical NHS grey fleet driver will receive 59p per mile, a well run lease car will cost less than 40p per mile.  Therefore each driver that is converted into a lease car will save 19p per mile.

If there are 100,000 NHS grey fleet drivers travelling 4,000 miles the total annual mileage travelled on NHS business is 400 million miles per annum.  If we can save 19p per mile the total annual saving is £76 million.  From our experience, in managing lease car schemes, the savings are as high as 30p per mile rather than 19p.

This means that a typical Primary Care Trust with an average business mileage of 3,000 miles and 450 grey fleet cars will save in the region of £256,000.00 per annum.

By removing the incentive to travel and adopting our Travel Policy, business mileage will reduce further and savings will increase.

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