Business miles hike up for smaller fleets but uncertainty on duty of care

Business mileage among smaller fleets is increasing but many managers still lack understanding of their duty of care requirements.

More than three-quarters (78%) of managers responsible for smaller fleets have reported an uplift in business miles being driven

New research from Alphabet found more than three-quarters (78%) of managers responsible for smaller fleets reported an uplift in business miles being driven.

The increase is in line with recent studies showing that travel disruption and train strikes have led to higher preferences towards car usage and ownership.

Supported by favourable Benefit-in-Kind (BiK) rates for lower-emission cars, the growing trend towards car usage is prompting rising demand for company car schemes; 66% of those surveyed said they’d seen a hike in demand.

Meanwhile, 67% said demand for salary sacrifice car schemes has also risen across their business. And a similar figure – 63% – said more employees are using their own private vehicles for business travel.

While business miles are ramping up, many fleets remain unaware of their duty of care requirements. According to Alphabet’s research, almost three-fifths (59%) believe such uncertainty is impacting the running of their fleet.

Lack of awareness of duty of care requirements could leave businesses exposed – employers are legally required to manage the risks and hazards associated with business travel and ensure vehicles are safe to drive at all times. This responsibility applies to any vehicle being driven for occupational purposes, regardless of whether it’s a company car, rental, or a privately owned vehicle.

Any failure to protect drivers could have potential significant legal, financial, and reputational consequences.

This is particularly the case for private vehicles used on business travel. Also known as the ‘grey fleet’, such vehicles tend to be older and may not be serviced as regularly as company cars. The problem is worsening during the cost-of-living crisis too; a recent survey by Nationwide Building Society found that almost half (49%) of vehicle owners are putting off essential repairs to save money, and more than one in three are worried their vehicle may break down due to poor maintenance. Typical, but crucial, items falling by the wayside include MOTs, servicing and breakdown cover.

Supervising grey fleet vehicles can prove difficult too, and they are more likely to be overlooked by fleet managers as a result. But if such vehicles aren’t properly maintained, businesses could be held responsible for any accidents or damages that occur when employees are driving for work.

It’s therefore imperative that fleet managers are aware of the implications that private vehicle use has on their business. Employers are responsible for ensuring grey fleet vehicles are fit for purpose and properly maintained, taxed and MOT’d. They also need to check that employees have business use insurance cover; hold a valid licence for the category of vehicle being driven; and receive appropriate training. Good record-keeping is vital in all this and regular checks should form part of the risk management process.

Carol Burgess, corporate and SME manager, Alphabet GB, said: “If a company requires its employees to use vehicles for business purposes, even if this is simply driving to an offsite meeting in their own private car, duty of care obligations must be prioritised and met. It doesn’t matter if a company has hundreds of employees or a handful, managers need to carefully consider how duty of care affects their fleet and take necessary steps to manage the risks associated with occupational driving.

“Staying on top of these responsibilities can feel like a big undertaking, particularly for smaller fleets that don’t usually have the benefit of a dedicated, full-time fleet manager. The good news is that support is available. Leasing providers can ease the burden by taking care of things like regular driving licence and documentation checks, risk assessments, and training.

“A little support goes a long way, and no matter the size of the fleet, experts are always on hand to offer guidance and provide much-needed clarity.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.