Financial Support for Purchase of Annual Bus or Train Passes
Employers in the UK can provide financial support for the purchase of annual bus or train passes through various schemes. Here are some options available:
- Season Ticket Loans: Many employers offer a season ticket loan scheme, which is an interest-free loan to cover the costs of commuting. This scheme is particularly beneficial for employees in city-based companies where peak travel costs are high. The loan can be used for unlimited travel within the ticket's validity period and route, and employees can request a loan up to £10,000, depending on the organization. Employees must be a salaried member with sufficient net pay to cover the monthly instalments. They should also have a contract of employment that exceeds the expiry date of the season ticket. More info Expenses and benefits: public transport: Overview - GOV.UK
- How Does A Season Ticket Loan Work? : employer sets a policy (Eligibility, Maximum loan amounts, Repayment terms, Process for applying to the scheme and application process) then employee has to apply for a season ticket loan through their employer. Typically, this is done via a benefits platform such asDrewberry, or by submitting an application form. Then the employer reviews the application, approves it then provides a season ticket loan either by purchasing it on behalf of the employee or providing the cash value of the season ticket to the employee to purchase it themselves. The employer adjusts payroll to ensure the employee’s payments are deducted. To provide a season ticket loan scheme via salary sacrifice, you will have to adjust the employee’s salary accordingly and create a new contract detailing the terms of the benefit. Payroll will also need an adjustment to ensure your employees are repaying the right amount.
SmartGO Scheme is a national scheme that provides discounted workplace travel, incentivizing low-carbon transport and saving staff money. It offers discounts on buses, trains, bikes, and more, all accessed through an online portal. The scheme is designed to promote sustainable travel and is available to employers and staff in various locations across the UK.
Transport UK Corporate Travel offers a Season Ticket Loan Scheme called "Let's Commute," which allows employees to order their train or tube pass directly via an online portal. This service is designed to save time and resources for both the organization and the staff.
Benefits of this financial support:
- Reduced Commuting Costs,
- Help Support Hybrid Work,
- Offering A Greener Method Of Travel.