Category: Fleet News

For many businesses, being able to provide free work car parks for employees has been a standard perk over the years. However, as part of a new push to ease congestion and save the environment, this could soon become a thing of the past in some towns and cities.

Instead, a new licensing scheme called the Workplace Parking Levy (WPL) may come into force. But how will it affect drivers and fleet managers? Let’s take a closer look.

What is the Workplace Parking Levy?

The WPL is a pioneering new initiative that will charge employers and education providers for the number of parking spaces they regularly offer to their users. This fee can be up to £750 per year (although it is typically much less) and it can either be absorbed by the employer or passed on to space users.

The aim is to encourage more commuters to use alternative means of sustainable transport rather than their cars. By law, the revenue raised through the WPL must be put back into improving local transport links.

It is hoped that as this funding grows through workplace parking legislation payments, everyone will be able to access low-carbon travel options and reduce their reliance on personal vehicles.

So far, 2024 data shows that The Workplace Parking Levy (WPL) – the first of its kind in Europe – has raised almost £90 million over the 10 years since its introduction. This has been re-invested into sustainable transport across the city.

Workplace Parking Levy reducing vehicle emissions

Transportation is one of the highest contributors to emissions, responsible for around 33% of CO2 emissions in the UK.

Traffic pollution is increasingly becoming a health hazard and a threat to the climate. During the first lockdown of the coronavirus pandemic in 2020, the world gained a unique insight into what cities could be like with fewer cars – and now environmentalists want to see this becoming the norm.

According to a University of York study, levels of nitrogen dioxide fell by an average of 42 per cent during the first and strictest lockdown. Meanwhile, further research from Defra suggested mean reductions of up to 40 per cent for nitrogen oxides, showing the impact of reduced traffic on air quality and carbon emissions.

This is significant, as an unacceptable number of people are currently dying as a result of pollution. World Health Organization figures attribute seven million premature deaths per year to unclean air, with 40,000 in the UK alone, according to the Royal College of Physicians.

Only radical new measures such as Clean Air Zones, Congestion Charges and perhaps the WPL are going to be enough to lower these figures and keep the UK on target to cut its carbon emissions by 78 per cent by 2035.

Which areas are considering the Workplace Parking Levy?

As of January 2020, a number of UK cities were considering the introduction of a WPL. These included Leicester, Bristol, Reading, Oxford and Birmingham.

Scotland had also passed permission for the charges as part of a new Transport Bill in 2019, with authorities in Edinburgh and Glasgow among those considering a WPL trial there.

In London, it is hoped that introducing WPLs will contribute to the city’s goal of ensuring 80 per cent of journeys are made through walking, cycling or public transport by 2041.

Also contributing to this is the UK Government’s £2 cap on single bus fares, which has now been extended until the end of 2024 due to it showing promising results, with a 17% increase in bus usage and a notable rise in individuals considering buses as a viable alternative mode of transport. 

On the other hand, the steady rise in rail fares has led to a decline in train travel. And despite a growing network of EV charging ports across the country, there has been no significant increase in the use of electric vehicles by commuters year-on-year.

Workplace Parking Levy: Nottingham

Since 2021, several updates regarding the Workplace Parking Levy (WPL) have emerged, particularly in Nottingham, where it has been a pioneering scheme. The levy, originally set at £415 per parking space per year, has gradually increased to £458 and then £522 in April 2023. The primary goal remains to reduce congestion and improve public transportation systems.

One significant impact is that the revenue from WPL has been funneled into major transport projects, including the expansion of Nottingham’s tram network and improvements to the railway station. This has directly contributed to reducing the number of car journeys by millions and a notable 33% fall in the city’s carbon emissions since 2005. Additionally, Nottingham now boasts the highest rate of public transport use in Britain​.

Many other UK cities, including Oxford and Glasgow, have looked into introducing similar schemes, but progress has been uneven. 

In Nottingham, exemptions still apply for businesses with fewer than 11 parking spaces, motorbikes, and certain frontline NHS services, helping ease the burden on smaller businesses and essential services.

Who is exempt from the Workplace Parking Levy?

Although the WPL is city-wide, there are exemptions for these organisations and vehicles:

• Employers with fewer than ten parking spaces
• Motorbikes
• Customer vehicles
• Fleet vehicles not used to travel to and from work
• Vehicles used to deliver and collect goods

This means as many as 80 per cent of employers do not have to pay the levy. However, charges do apply for employees who drive company vehicles and take them home at night.

Since the WPL will also affect employees who drop off fleet vehicles and drive home in their own cars, businesses in areas set to be affected may want to consider schemes such as car sharing and special rates on public transport in future.

Criticism of charging for work parking

The WPL is proving controversial, with critics arguing that public transport is too unreliable in especially rural areas for people to use public transport and therefore avoid potential WPL levies.

However, WPLs are likely to only be introduced in the largest cities, which should already have good transport links in place.

There is also an argument that electric vehicles should be exempt from the workplace parking charge as they currently are for Congestion Charges, since they do not contribute to pollution. This is not currently part of the criteria, but it may be something the government considers in future.

Although the Workplace Parking Levy has already proved successful in Nottingham, it will certainly need some tweaks and additions to help employees use greener transport methods if it is to be widely rolled out in other cities.

But as the government moves towards a more environmentally-conscious agenda, it does look as though the WPL is becoming a more likely reality for road users going forward and will therefore be something we will all need to adapt to.

Keep up to date with fleet vehicle news

Keeping up with fleet vehicle trends is essential for businesses managing company cars, vans, and trucks. 

Whether it’s news on electric vehicle (EV) adoption, government policy changes, fuel price fluctuations, or advancements in fleet management technology, staying informed helps ensure your fleet operates efficiently and sustainably. Have further questions? Contact our friendly team today.

With environmental issues becoming more of a priority for nations across the globe, the UK government has been turning its attention towards policies aimed at lowering harmful greenhouse gas emissions.

Traffic pollution in cities in particular has been a key concern, and Britain decided back in 2010 to impose limits on pollutants such as nitrogen dioxide.

By 2015, this had evolved into clean air plans for major conurbations, with local authorities told they needed to have blueprints in place by the end of 2018.

Clean Air Zones (CAZs) were the result – and they look set to become a way of life for drivers going forward.

What are CAZs?

Clean Air Zones are areas where action is being taken to improve air quality, whether that is along a single road or within most of a city. They are not the same as Congestion Charge Zones, where all vehicles must pay to drive. Instead, drivers will only be affected if their vehicles exceed designated emissions standards.

London already has CAZs in place that follow on from its pioneering Ultra Low Emission Zone, with more cities set to follow suit imminently. Unfortunately, the anticipated widespread 2020 introduction was delayed due to the COVID-19 pandemic, but the rollout should start to gather pace soon.

How do CAZs work?

The Department for Transport and Department for Environment, Food & Rural Affairs laid out their joint CAZ Framework Principles in England in February 2020. They provided a blueprint that local authorities will be expected to take when implementing and operating CAZs.

This includes where boundaries are defined and any policies that need to be applied as a result. Importantly, not all CAZs are charging. Instead, the government recommends that charges should only apply if non-charging measures are not likely to reduce air pollution rapidly enough.

Furthermore, charges can only be set at a level designed to reduce pollution, and any revenue collected must be invested in further environmental improvement.

All CAZs are aimed at reducing nitrogen dioxide emissions from transport as quickly as possible and discouraging the use of older, more polluting vehicles.

Drivers will be responsible for checking if charges apply before venturing into CAZs, which can be done using interactive maps like the one provided by the British Vehicle Rental & Leasing Association. The government also has its own portal for paying relevant fees.

CAZs must be clearly signposted and automatic number plate recognition will be used to capture all vehicles using them. If relevant charges are not paid within seven days of entry, a Penalty Charge Notice will apply.

Why are Clean Air Zones important?

CAZs are part of a wider ambition to comply with strict emissions targets and to make cities more attractive places to live at the same time.

Indeed, the UK has already said it will ban the sale of new diesel and petrol cars by 2030 with the aim of making all cars and vans zero-emission by 2050. Putting actionable steps in place towards these targets is likely to be the only way to ensure they will be met.

It is hoped that this will not only battle climate change, but also the rising problem of poor air quality affecting public health. According to the World Health Organization (WHO), seven million premature deaths per year can be attributed to air pollution, with 40,000 in the UK alone, the Royal College of Physicians and of Paediatrics and Child Health states.

By delivering a significant reduction in nitrogen dioxide, many of these unnecessary deaths could be avoided.

This might not be the only advantage either. Research from CBI Economics suggests that by deterring the most polluting vehicles from entering populated areas, CAZs could inject £1.6 billion into the British economy each year through factors such as reducing time spent off work because of illness.

What will this mean for businesses and fleets?

Understandably, any changes to our network of roads can be a concern, especially if they look set to include charges. When asked about the main challenges for fleets in the next five years, 30 per cent of respondents to Arval Mobility Observatory’s 2021 Barometer cited the creation of more CAZs.

However, many businesses are actually likely to find that they can meet CAZ requirements with very little alteration to their typical routines. For example, they can check and pay for multiple vehicles at the same time using a company account and automated payment system. This is no more complicated than using fuel cards and telematics to manage routes and fleet vehicles.

Furthermore, as older vehicles are gradually upgraded to cleaner fleets anyway, the issue of fees and penalties will no longer be relevant. Businesses may even find they are actually increasing profitability as their locations become more attractive to other firms and prospective customers.

An incentive to upgrade?

One of the key benefits of electric vehicles in terms of CAZs is that they are automatically entitled to a national exemption from charges because of their zero-emission status.

This might therefore offer fleet owners an incentive to upgrade sooner rather than later, especially if they frequent affected routes. The Office for Zero Emission Vehicles is potentially able to offer grants to help businesses go greener, with more information available via the Go Ultra Low Campaign.

Eventually, driving EVs and getting used to seeing CAZs may help to spark more environmental awareness within the general population and businesses too. For example, Fuel Card Services uses a vehicle emissions monitoring service called CO₂Count. For every certificate issued, a donation to the charity Cool Earth is made that goes towards preventing Amazonian deforestation.

As CAZs become more widespread in cities, it will be interesting to note their contribution to reducing Britain’s environmental footprint and to making urban areas healthier places to do business.

The idea that synthetic fuels could sustain the life of cars with internal combustion engines (ICE) brings hope to many car lovers.

Whilst the introduction of electric vehicles is a fantastic step forward in the goal for carbon neutrality, some can’t help but wonder what it means for those who still rely on fossil fuel burning vehicles.

What are synthetic fuels?

Synthetic fuels, or eFuels, are a liquid fuel just like the ones used today. However, they are manufactured using an environmentally friendly, carbon neutral process.

These artificial fuels are compatible with the combustion engines we use today. They can even be delivered through the same pump system.

With the government placing a ban on the sale of new petrol or diesel cars and vans in 2030, many have questioned what it means for their current vehicles.

Some people may not be ready to make the switch to electric vehicles by 2030, especially if their location means they don’t have access to charging stations.

With synthetic fuels, they may not need to make the transition. If eFuels were introduced commercially, we could see carbon neutrality in many vehicles – not just electric.

Why are synthetic fuels better for the environment?

These fuels are made with a carbon neutral process. The initial step is to extract hydrogen from water through a process called electrolysis. However, we still need carbon for liquid fuel. This can be extracted from the surrounding air, making use of the emissions that we are trying so hard to reduce.

Combining the hydrogen and the CO2 is what makes synthetic methanol. It can then be refined to create artificial petrol, diesel or kerosene.

Of course, the synthetic fuel is only as carbon neural as the process used to make it. The process is powered by green energy sources such as wind or solar power. Unfortunately, as of 2021, this is still an expensive and painstaking process.

Whilst electric vehicles are considered to be the future of transport, they falter in one aspect that synthetic fuels do not. Creating the batteries for EVs is actually less sustainable than the process of creating artificial fuel, due to the amount of lithium that is mined. Whilst EVs may not produce any environmentally damaging emissions, their creation process still needs refining before they can claim to be completely carbon neutral.

Cars running on synthetic fuel of course do have emissions, but are carbon neutral since their power source was created using recycled carbon.

Who is developing these new fuels?

Companies such as Bosch are committed to creating fuels generated from renewable energy sources to ensure carbon neutral combustion. They point out that there are 1.3 billion vehicles in the world right now. If all of them could be powered with carbon neutral fuels, the world’s environmental targets could be within reach.

Porsche have also teamed up with Siemens, as well as energy firms Enel, AME and petrol company ENAP to build a factory in Chile. The location was chosen for its wind, as this can be used to power the fuel creation process. The factory hopes to produce 550 million litres of synthetic fuel by 2026. Unfortunately, the UK uses over 46 billion litres of fuel a year, so advancements are still needed in this area.

When will eFuels become commercially viable?

According to Ansgar Christ at Bosch, eFuels will become the number one choice of fuel once its carbon neutrality is legally recognised.

The creation process will also have to be made cheaper and more efficient. The price of these fuels would be much higher than fossil fuels if released to pumps today.

However, once more refineries are built, Bosch predicted that price of eFuels could drop to £1.04 per litre by 2030, and continue to fall after that.

The future of transport likely lies with both electric vehicles and synthetic fuel. Whichever you opt for, the industry is pushing further towards carbon neutrality. Get in touch with our expert team to find out more about how you can contribute towards this goal.

When you’re operating a fleet, keeping costs as low as possible is a key consideration if you’re going to turn a profit. And one of the main costs for any road-based business is always fuel.

However, it’s important to remember that fuel is a controllable expense, not one that simply needs to burn through money. In order to boost efficiency, you’ll want to ensure that you’re always using the best types of fuel for your business needs.

But how will you know which is the best choice if you’re thinking of upgrading your vehicles? Let’s take a look at the four main options currently available.

Petrol

Petrol vehicles have typically been the most popular on Britain’s roads, largely because they’re the cheapest to both buy and refuel. They are also getting greener thanks to the addition of features like turbochargers and fewer cylinders.

However, they can be prone to overheating and they still emit unburned hydrocarbons, particulates and carbon monoxide from their exhausts. This meant that when emissions first began to be used as a factor in taxes paid on company cars, many businesses opted to switch to diesel.

Diesel

A high proportion of fleet owners have traditionally opted for diesel vehicles, with brands such as Transit having built reputations for solidity and reliability. They usually have a longer lifespan and can actually offer better fuel consumption than petrol engines.

Indeed, diesel vehicles can use up to 30 per cent less fuel and emit 20 per cent less carbon dioxide than their petrol counterparts. However, they unfortunately emit far more exhaust particulate matter, particularly nitrous oxide. This can penetrate the human lungs due to its respirable size.

With research linking air pollution to thousands of deaths per year in built-up areas, this is undoubtedly a concern. Diesel shouldn’t be written off just yet, though, as carmakers are fighting back. New tech such as filters and additives aim to remove the dangerous particles before they are pumped into the atmosphere.

Hybrid

Hybrid vehicles are powered using a combination of a petrol or diesel engine and an electric battery, with the battery recharged while the vehicle is driven or through braking. Plug-in hybrids can also be charged from an external power supply.

This type of vehicle is becoming ever-more popular among fleet owners, as they can cut carbon dioxide emissions by as much as a quarter compared to petrol. Meanwhile, Which? research suggests petrol-hybrids are the most reliable type of engine.

However, range can still be an issue if longer trips are required, with hybrids most suited to shorter journeys around urban areas due to battery limitations.

All-electric

With no fossil fuel-based engine at all, all-electric vehicles (EVs) are powered purely with a battery and an electric motor. That means they’re about as green as you can get – zero emissions whatsoever are emitted while driving, plus they can usually be charged up from a standard power point (although super-fast charging may require dedicated infrastructure).

Fleet owners could also enjoy the added benefits of fewer moving parts meaning lower costs in areas such as servicing in the long term.

As with hybrid vehicles, distance per battery charge can still be a drawback when it comes to EVs, but this is something that is improving all the time. Manufacturers such as Tesla now boast EVs that can comfortably last more than 200 miles, meaning most fleet drivers should be covered without having to stop for more juice.

Assessing what you’ll need

The best way to work out which of the above is best for your fleet is to take a look at your current performance, define where you want to be and then look for opportunities for improvement.

Ask yourself:

• Who is travelling and how often?
• How far are your fleet drivers going?
• What type of environment are they travelling in?
• How important are your green credentials?

This should provide insight into which vehicle and fuel choice (or combination) is best for your particular circumstances.

How fuel cards can help

If you’re keen to collect more information about the fuel your fleet is currently using, a great option could be to issue fuel cards. You may already have seen these on garage forecourts, with companies that use Shell fuel, for example, able to pay with a Shell card.

Drivers simply charge the cost of fuel to their employer’s account and the final bills are paid monthly in arrears.

They are beneficial in this case as most fuel cards will issue economy reports as part of their service, which can then be used to analyse consumption and easily see where improvements can be made.

Other benefits of fuel cards include:

• Discounts on purchases
• Ability to separate business and personal mileage
• Reduction in administration
• More secure in the event of theft
• Incentive to drivers to cover fewer miles and drive more economically

Environment a bigger part of public policy

With green issues now a key focus for the government, it may be that we will all soon be required to make more environmentally-friendly choices when it comes to what we’re driving.

The Intergovernmental Panel on Climate Change estimates that there needs to be a 50 per cent reduction in global emissions compared to 1990 levels by 2050, while the UK government has set even more ambitious targets of 80 per cent.

Electrification of car and van fleets is being seen as a big part of this, although much criticism has been aimed at ministers for failing to have a true masterplan for the decarbonisation of transport.

For instance, the Committee on Climate Change said it wants to see greater incentives for commercial fleets to buy more efficient vehicles, which may include tax breaks and better charging infrastructure for HGVs.

Which fuel is best for you?

In the meantime, with petrol and diesel vehicle sales set to continue on top of the other options until 2030, the choice of fuel essentially remains down to the fleet manager.

However, by taking into account the business requirements, lifecycle costs, data monitoring and environmental concerns detailed above, you should hopefully now have a better idea about what fuel choice would be best for your fleet. Contact us to find out more about fuel types and which fuel card would work best for you.

Earth’s rainforests receive high levels of rainfall each year, often up to 400 inches compared with less than 40 in the UK. A great deal of this rainfall comes from the fact that rainforest is often self-watering. Through transpiration, plants release water into the local atmosphere. This creates a dense cloud cover that you see hanging over rainforest canopy. Even when it’s not raining, these clouds keep the rainforest ecosystem humid and warm. It’s this immense heat and humidity that has meant a vast range of animals and plants have adapted to this specific climate over the years.

At the global level, rainforests drive the flow of water as rain. They are the centre of the water cycle, circulating water vapour and feeding rivers that eventually take water back to the oceans. Evaporation from the oceans is seeded by organic dust and particles created by the trees themselves. It is a remarkable system, working simultaneously at microscopic and planetary levels, full of intricacies and interdependencies.

But this means that as rainforests shrink, droughts increase, both locally and around the world. Evidence is already showing that forest loss in the tropics is already affecting crop growth worldwide. At the local level, despite the huge volume of water found in and produced by rainforest, access to the right amount of water is becoming more problematic for local people.

There are increasing reports of rivers turned gold from mining waste in the Amazon, palm plantations polluting coastal waters in Papua New Guinea and sea-level rise flooding crops and causing havoc on sanitation systems. It’s why your support is so vital, both locally and globally. You’re keeping rainforest standing at the heart of the water cycle, by supporting local communities with access to good quality water and to cope with the effects of deforestation and climate breakdown.

In recent years, your investment provided fresh-water storage tanks and flood-resistant toilets to reduce local pollution in Papua New Guinea, tippy-taps to provide safe handwashing and fish ponds to avoid fishing in rivers with mining pollution. All alongside helping develop sustainable incomes that work with the forest, help people earn a living and reduce pressure on their forest. Healthy families mean healthy forest, and that often starts with something easy to take for granted; water.

It’s why keeping rainforest standing is not only vital for those who call rainforest home but for us all, to ensure Earth’s systems that we all rely on are kept in balance. The support Cool Earth receives is not only protecting forest, it’s also helping address the increasing challenges of getting good, clean water in the right places for local people.

Fuel card services are working with Cool Earth to mitigate global carbon emissions by preserving the most threatened rainforests. Get in touch now to find out more about what we’re doing to help.