The report, carried out by Employee Benefits magazine in conjunction with flexible benefits consultant, Towers Watson, was drawn from the responses of 346 organisations. It found that some 22% of respondents plan to add salary sacrifice cars to their flexible benefits, while 10% of employers plan to add low-emission cars to their plans.

The research also found that some 18% of employers currently offer salary sacrifice cars and 11% of employers currently offer low-emission cars through their flex plans.

The flexible benefits study involved businesses of all sizes, with 54% employing more than 1,000 staff, of which 14% employed more than 10,000.

Commenting on the study, David Hosking, CEO of salary sacrifice specialist Tusker, said: ‘We are delighted but not surprised that the Employee Benefits/Towers Watson research has shown that increasing numbers of employers intend to add salary sacrifice car schemes to the list of flexible benefits they provide to employees.

‘This is completely in line with our own findings and underlines the value that British businesses place on a salary sacrifice car scheme as a legitimate way of providing staff, who would not otherwise qualify, with a brand new car.

‘One of the secrets of the enduring success of our own scheme is its simplicity and the savings that it generates for both employee and employer alike.  SS4C offers all employees a tax-efficient car, allied to fixed cost, worry-free motoring at very attractive rates.’

Hosking added that he believed that demand for salary sacrifice car schemes would continue to grow and calculated that vehicles supplied could account for as much as 20% of the fleet market by the end of the decade.

Tusker’s SS4C solution is used by organisations in both private and public sectors throughout the UK.The company says demand at smaller organisations where it has implemented schemes can be around 30-40%, while take-up at large employers – more than 2,500 employees – is often as high as 15%.