Rewards & Benefits

NEWS

ERB - goodbye for now

The last issue of Employee Rewards & Benefits magazine was published in November.

Payroll errors going unnoticed

Over half of UK employees have been affected by a payroll error.

Xmas 'perk' causes council row

A cabinet member of a county council has resigned after saying staff would be given an afternoon off for Christmas shopping to stop them 'skiving'.

BT helps staff cut cancer risk

BT is helping its employees reduce their cancer risk by encouraging changes in their behaviour.

Magic circle law firm wins age discrimination case

In the first of two landmark rulings on age discrimination, elite law firm Freshfields Bruckhaus Deringer has won its case against former partner Peter Bloxham.

Landmark ruling on new age laws

A claim that forcing employees out at age 65 is discriminatory has been thrown out by the European court.

New tax rule suspended

Fears that tax changes to health screens would lead to a reduction in the numbers using them has forced a government rethink.

'Blue-chip benefits' save crisp firm from unionisation

A generous pay and benefits package has helped see off the unionisation at premium crisp manufacturer Kettle Foods.

BT replaces all DC pension fund managers

Trustees at BT's 163 million pound defined contribution pension scheme have made a clean sweep of all their current fund managers.

'Company cars emit 40pc less carbon dioxide'

Company cars are emitting more than 40pc less carbon dioxide than they were four years ago.

Group SIPP linked to flexible benefits platform

Premier Pension Services (PPS) has launched a Group SIPP that can integrate into an employer's existing flex package.

B&Q: fresh incentives for staff

B&Q is bringing in new incentives to align staff with its latest sales strategy.

Will it be a merry Christmas for EAPs?

The campaign to confirm the tax status of Employee Assistance Programmes (EAPs) has become a race against time.

Holiday pay plans to be axed

Holiday pay funds are to be axed for most employers as part of package of measures designed to protect the tax system from abuse.

DB cost leads to benefit cuts

One in four employers are cutting back on benefits to meet pension costs, according to research by the CBI and Watson Wyatt.

Workers could bear the brunt of green travel tax

Boots and Imperial Tobacco are among the 500 employers whose staff could be hit by a tax to park at work.

PMI policies must be clearer on cancer cover

Health insurers must give more detailed descriptions of the cancer cover they offer says the Association of British Insurers (ABI).

DB back door closed for execs

The largely unpublicized practice of letting new senior executives join 'closed' final salary schemes is ending according to Watson Wyatt.

Asperity acquires BringMe

Lloyds TSB Registrars has sold its BringMe voluntary benefits business to Asperity Employee Benefits for a six figure sum.

Bupa boosts IP payouts

Employees with Bupa group income protection cover can now receive a maximum benefit of 75pc of their income, regardless of any state incapacity benefit entitlement.

Kent boosts reward with local, accessible benefits

Kent County Council is driving benefits take up by integrating its range of voluntary benefits and adding online total reward statements for its 44,000 staff.

Allianz to issue innovative discount card

Insurance firm Allianz is to roll out a new type of debit card that can be used by employees' partners.

Share scheme set up in record time

Wolseley set up a European share scheme across 12 countries in three months, delegates heard at the annual ifsProShare conference yesterday.

10pc pension contribution 'too low'

Average pension contribution levels are too low to support employees in retirement, according to a survey by Mercer.

Unisys plans to scrap final salary scheme

Unisys is planning to end further accruals to its defined benefit pension scheme for its UK staff.

Mercer chooses Vebnet

Mercer is giving its existing flex clients the option to switch to Vebnet after it signed a ten year deal with the benefits software provider.

Prudential "revolutionises" the protection market

Life insurance, income protection and critical illness can now be bought on a points-basis like PruHealth's private medical insurance (PMI).

Axa helps manage debt for all staff

Axa has created a free money management website for its 12,000 employees and for any other employer that wishes to use it.

'Unfair' pay spurs fiddling of expenses

Half of employees who feel they are not fairly paid, compensate by exaggerating their expense claims, according to new research.

HR professionals working longer hours

More HR professionals are working longer hours, according to the CIPD.

Asbence of fleet managers puts firms at risk

Fleet managers are declining in number, but their importance to employers has never been greater, according to a leading car industry expert.

Shopping vouchers recalled

The Park Group has issued a recall of its Love2shop vouchers after fraudsters started circulating forged copies.

Norwich Union tackles absence with automated reporting system

Norwich Union Healthcare has launched a telephone-based recording and reporting system to help employers manage absence and speed up the return to work.

HR's impact on climate change

Visitors to the CIPD conference can calculate their household carbon emissions to reveal a snapshot of the HR community's impact on climate change.

DC could offer far more to staff

Most DC schemes are not using easy devices to help members increase their pension pots, according to a survey by Hewitt Associates.

BT claims green goals are impeded by government transport policy

BT has been locked out of several all-employee travel schemes owing to its size and diversity, and is lobbying government for changes.

BP ponders financial education for staff

BP is looking at educating its staff to help with financial planning around share schemes, bonuses and pension opportunities.

Recognition cuts staff turnover at Compass

A division of national catering provider the Compass Group has cut staff turnover from 46pc to 30pc with the help of a recognition scheme.

Increase in flexible working produces mixed results

Flexible working practices are becoming more mainstream with nine out of 10 employers offering it in at least one form.

Cornwall Council launches employee award scheme

Cornwall County Council is launching an employee recognition award scheme to acknowledge employees for their commitment to making a difference to the people of Cornwall.

Essential statistics on financial firms' benefits

A unique survey of financial services firms has revealed that 15pc still have final salary pension schemes open to new members.

KPMG offer staff modern musculo-skeletal therapy

KPMG is offering its staff a new and sophisticated way of managing musculo-skeletal problems.

Axa PPP expands well-being offering

Increasing demand for employee well-being and rehabilitation services has led to two new alliances in the health sector.

The benefits all add up at Cancer Research UK

Cancer Research UK is thinking outside of the box to attract and retain talented staff without the budget of the private sector.

Pension payout could depend on postcode

People living in poor areas will be offered higher pensions, if a pilot scheme using postcodes to set annuity rates proves successful.

Cash incentives for green targets

Nearly one in ten employers is now rewarding the green behaviour of their staff with financial incentives and awards.

Too many pension trustees are old men

The vast majority of pension trustees are men over the age of 60 according to research by pension consultant and actuary Hymans Robertson.

Health is valued benefit

Bupa's Health of the Nation survey has revealed that private medical insurance (PMI) comes second only to a pension as a desirable employee benefit.

Bradford & Bingley launch reward and recognition scheme

Bradford & Bingley has launched a reward and recognition scheme for 2000 of its group sales employees.

Employees given priority with big cash rewards

A big player in the property market is offering employees a twenty thousand pound incentive for every director they introduce to the company.

Pension fund surplus short lived

A surplus of 12bn pounds for FTSE100 pension schemes has turned into a deficit of 15bn pounds over the last month according to a leading actuary.

Employees unhappy with benefits

Employees satisfaction with pay is much higher than their satisfaction with rewards and benefits according to a new survey.

Pay surge was exaggerated

Fear of an inflationary pay surge at the beginning of the year was exaggerated, according to the latest figures from the Office for National Statistics (ONS).

Busy Bees buys Leapfrog

Childcare voucher provider Busy Bees claims to have become the biggest firm in its sector after acquiring Leapfrog Day Nurseries and Leapfrog Childcare Vouchers.

Environmental benefits for all

Employers will gain access to a whole new swathe of 'green benefits' next month from three providers.

One tree planted for every employer that takes part in our survey

If you have a few minutes to spare please take time to go to the link below to take part in the UK's biggest ever survey focused on voluntary employee benefits.

Health screens get new tax rules

Health screening must be offered to all employees or will become eligible for tax from next week

Shell launches interactive company car service

Shell has launched an interactive online service that lets its employees configure, price, order and track new company car vehicles. The service is being offered as part of a deal that sees the oil giant pass its fleet funding, management and driver services for its 2,300 car fleet to Alphabet.

Virgin Media sets up healthcare trust

Virgin Media is setting up a healthcare trust to provide BUPA private medical insurance to its 13,000 employees for the next three years. The trust was set up to provide for the combined operations of NTL and Telewest which merged earlier this year to form Virgin Media.

Poll reveals employers will drop benefit if EAPs are taxed

A staggering 86pc of employers who offer an employee assistance programme (EAP) would consider withdrawing it if it became taxable.

BUPA customers get free well-being assessments

Bupa has unveiled free online health assessment tool for all of its customers. The service, which was exclusively revealed in Employee Rewards & Benefits magazine in June, will give employees confidential 24/7 online access – at home or work – to a series of health assessments focusing on nutrition, fitness, sleep and stress.

Risk benefits under threat

Half of employers believe age legislation has made the provision of life cover, income protection and private medical insurance less sustainable. The findings come from Watson Wyatt’s 2007 Risk Benefit survey, which quizzed 130 UK employers.

Family Care Company acquires Bupa Childcare

BUPA’s corporate childcare arm has been bought out by Emergency Child and Home Care. The deal sees the company renamed as the Family Care Company to reflect the complete services it now provides to employers.

A third of pensions in surplus despite market falls

A third of the largest 200 UK pension funds remain in surplus, including 40pc of FTSE-100 companies, despite recent market falls.

Gold medal discounts

Leading independent travel agent Gold Medal Travel has become one of the first high profile clients of new discount provider Lealta Benefits. The deal will give Gold Medal Travel’s 700 staff personalised cards that can be produced at local and national retailers and leisure outlets for discounts of up to 50pc.

Flex and payroll provider unite

Flexible benefits provider Motivano has signed a deal to work alongside ambitious payroll software firm HR Access. Employers that wish to choose an HR Access system, including multinational payroll, personnel administration and human resources management will now get offered the Motivano flex system too.

Lloyds TSB Registrars to become Equiniti

Lloyds TSB Registrars will become known as Equiniti on the completion of its purchase from the Lloyds TSB Group by Advent International. The name was chosen after consultation with the company’s employees, who voted on a shortlist of names.

EAPA to create guidelines to avoid tax charge - exclusive video interview

A set of guidelines is being drawn up to prevent employee assistance programmes becoming liable for tax. In an exclusive interview with ERB the chairman of the Employee Assistance Professionals Association (EAPA) Eric Marshall explained that he hopes the framework will help provide clarity on what is and what is not allowed within EAPs.

Royal Mail pension age could rise 'five years'

A secret document has revealed proposals to increase the age at which Royal Mail workers can retire on full pension. The plans leaked to the Mirror recommend raising the retirement age from 60 to 62 next year and to 65 in 2010, as well as the closure of the final salary pension scheme to new members from next year.

Vebnet offers flex clients a carbon calculator

Vebnet has become the first flexible benefits provider to offer an online carbon footprint calculator to help employees combat climate change. This follows the launch of its payroll giving carbon offset scheme in April this year, which Centrica was the first organisation to adopt.

New guidelines offer hope for EAPs

A set of guidelines is being drawn up to prevent employee assistance programmes becoming liable for tax. The Employee Assistance Professionals Association (EAPA) hopes the framework will help provide clarity on what is and what is not allowed within EAPs.

Freshfields faces second lawsuit over age-discrimination claims

A top London law firm has been hit by a second age-discrimination claim over changes to its pension scheme. Freshfields Bruckhaus Deringer former head of insolvency Peter Bloxham accused the firm of age discrimination on the ground that changes to its pension scheme affected partners differently according to their age.

HSBC champions its green employees

HSBC is creating up to 3,000 employee climate champions as part of its $100m (£50m) five-year Climate Partnership. Employees will be sent to an Earthwatch Climate Change project for two weeks to undertake field research and bring back valuable knowledge to their communities.

Well-being soars in use

Well-being strategies have soared in use at employers over the last year according to a new survey from the Chartered Institute of Personnel and Development (CIPD). Its annual absence management survey of more than 800 organisations, reveals that 42pc of organisations have implemented a well-being strategy compared to just 26pc for the previous year.

Former senior lawyer sues firm for age discrimination

In one of the first age discrimination cases of its kind, a senior lawyer is suing his former firm over changes to its pension scheme. Former partner Peter Bloxham lost 20pc of his pension and has taken Freshfields Bruckhaus Deringer LLP to the Employment Tribunal, which is expected to call some of London’s top lawyers to give evidence.

Vodafone acquires Flexphone

Vodafone has bought Flexphone and hopes the deal will increase employee take-up with enhanced choice and service.

Law firm ups pay and benefits in war for talent

Law firm Hammonds has boosted pay, bonus and benefits for its junior staff in a bid to compete with bigger firms. Salaries for its newly qualified solicitors will increase from £48,000 to £60,000 in its City practices, while outside the City the newly qualified will see salaries rise from £34,000 to £40,000.

ERB moves to Broadwick Street

Employee Rewards and Benefits (ERB) has moved. Following Incisive Media's acquisition of VNU, ERB has moved to the 32-34 Broadwick Street, Soho, London, W1A 2HG.

Employers ignoring the green business case

UK businesses could save around £2.6 billion a year by running greener company car fleets, according to a report from the Energy Saving Trust. Company car fleets are frequently the second largest overhead a company incurs, yet the Behind the Wheel report reveals a lack of interest over their vehicles' impact on the environment and their bottom line.

NHS authority goes private for staff healthcare

NHS Blood and Transplant has commenced private sector occupational health services for its 6000 employees. The special health authority, which provides blood, organs and associated services to the NHS, will have medical assessments for its employees carried out at 15 national treatment centres.

Parents missing out on childcare savings

One in fifty working parents have signed up for childcare vouchers, according to new research. The research carried out by childcare voucher specialist Childcare Choice reveals that most parents who have access to a childcare scheme at work, haven't signed up because they believe it is too much hassle or would take too long. This is despite the fact that if both parents are working, they could be saving as much as £2,400 a year.

Boots and Reuters upgrade pensions admin

Boots and Reuters have both appointed new pensions’ administration providers. Boots has awarded a six year contract to Northgate HR worth in excess of £1.3million, while Reuters has given Capita Hartshead a five year contract.

Revenue spells out the law on EAPs

The Revenue has spelt out situations in which an EAP would be liable for tax and where it would not. This follows commotion among benefit professional following the Revenue’s move to charge another government department £1.5m on its use of an EAP – the most high profile instance of an EAP being taxed.

Whitbread chooses Bupa

Whitbread has chosen Bupa to provide healthcare to around 1500 senior employees for the next three years.

Gissings and P&MM join forces on childcare

Gissings Advisory Services is to offer P&MM's childcare voucher scheme to its 500 plus clients. P&MM’s Childcare-Plus scheme offers added value benefits by giving parents discounts or 2 for 1 deals on attractions.

Employee awards night of shame

Sainsbury’s has launched an inquiry after drunken mayhem turned its glittering employee awards ceremony into a night to forget. Around 700 members of staff, including supermarket managers attended the champagne reception and dinner at the glamorous Celtic Manor in Wales, to celebrate and pay tribute to staff who have gone above and beyond the call of duty.

EAPs under threat from taxman

An urgent campaign is underway to overturn HMRC’s decision to tax a government department £1.5m for their employee assistance programme (EAP). EAPs are generally exempt from tax because they are viewed as a wellbeing service, but because they provide financial and legal assistance they can fall foul of the taxman.

BUPA sells its hospitals in billion pound deal

BUPA is to sell its 25 UK hospitals to the European private equity firm Cinven for £1.44 billion. The deal is in effect a break-up of Bupa, splitting the operation of its hospitals, which generates 11pc of its income away from its much larger concern of running private medical insurance.

Sharesave unscathed by IFRS2

Sharesave plans have defied the doom-sayers by emerging relatively unscathed from IFRS2, according to an IFSProshare study. It found that in 2006, one year after the accounting standard was introduced, only 1pc of employers offering sharesave did not seek approval to renew the plan, while new applications for plans more than replaced those that dropped out.

Day out for Grant Thornton staff

Seventy Grant Thornton staff are to take advantage of a project that lets them out of the office for the day. All Grant Thornton staff are entitled to one day’s leave to work on a range of community projects and on June 15, as part of ‘London Better Together Day’, 70 volunteers will put their gardening, painting and sporting skills to use in primary schools throughout London.

28 days greater

Eight additional days' statutory holiday are being phased in by the government from this October. From this date the minimum annual paid holiday will increase by four days for full-time workers to 24 days (including bank holidays). Then, from October 1, 2008 it will increase by another four days, to 28 days.

DWP fleet moves to contract hire

The Department for Work and Pensions (DWP) is moving its 2,200 vehicles from fleet ownership to contract hire in a bid to reduce costs. The deal with Inchcape Fleet Solutions means that all vehicles over four years old will be replaced in August, which amounts to around half the fleet.

Aegon Scottish Equitable extends group life cover to age 75

Aegon Scottish Equitable has raised the termination age to 75 for its group life products, following changes in FSA legislation. Following the decision of the FSA to remove the age and term conditions from its definition of a ‘pure protection’ contract, from June 6 group risk providers are now able to offer group life cover above the age of 70.

Bupa to offer wellness to all policyholders

Bupa is to offer online health assessments to PMI policyholders from this summer. The health assessments, through wellness provider Vielife, have been offered on an ad hoc basis to clients that requested them, but it is believed that they will now become part and parcel of the Bupa offering.

KPMG appoints Staffcare as its benefits technology partner

KPMG has switched its preferred choice of flexible benefits provider from Vebnet to Staffcare. The accountant and consultancy firm has implemented flex and salary sacrifice arrangements at over 100 employers and claims that the Staffcare system will reduce the need for a direct relationship between the technology provider and the consultant’s clients, thereby allowing a cheaper and more flexible solution.

Top employers campaign for eldercare tax and NI break

A coalition of employers and providers is lobbying the government for a new benefit offering tax breaks for carers. Care Vouchers would provide tax and NI exemptions in the same way as childcare vouchers and BT, Ford, HSBC, IBM and Lloyds TSB are all backing the campaign alongside voucher provider Accor Services.

Lloyds TSB staff share in company's £27m success

Lloyds TSB staff stand to net an average £3000 under the company’s maturing three year Sharesave scheme. The scheme closed on 1 June and those choosing to invest the maximum £250 in the 2004 scheme now own shares worth £16,808.

Glaxo offers cut price health screens

GlaxoSmithKline has launched discounted Bupa health screens and bikes4work through salary sacrifice on a voluntary basis for staff. Both new benefits can be accessed through a special web portal, that includes the previously launched childcare vouchers, and allows employees to measure the impact on their salary before they commit to any of the benefits.

BA offers shopping vouchers with 8pc discount

British Airways has launched retail vouchers with discounts of up to 8pc off face value to its staff. The vouchers have been brought in after feedback from some employees that they would like access to offers that allowed them to shop in person as well as on online.

BT swaps free shares for free broadband

BT is to replace its annual free share offer with free broadband over the next year. BT is concerned that its employees do not fully value the free share offer and it sees the broadband offer as something of equivalent value that will better engage staff.

Pensions guru to speak at web seminar

A chance to see US pensions and savings guru Schlomo Benartzi being quizzed by UK pension experts will take place on 28 June. The University of California, Los Angeles professor is the driving force and innovator behind Save More Tomorrow plans and has given advice to the UK department of work and pensions.

McDonalds' employee of the year

A floor manager has beaten 36,000 staff to be named McDonald’s National Employee of The Year. Curtis May from the Kings Road branch in central London was awarded £250 and a week’s holiday in Spain, after beating seven other regional finalists in the competition which recognises dedicated hourly paid employees.

Lloyds TSB registrars sold to US private equity firm

Lloyds TSB Registrars has been sold to a US private equity firm for £550m. The share scheme registrar claims 55pc of the FTSE100 as its clients and only recently shifted its strategy by seeking to become the leading provider of outsourced employee benefits administration in the UK.

Referral rewards could slash recruitment costs

A company hiring 250 people per year would save £80,000 if 10pc came through referrals and a £250 reward was paid for each, according to new research. Capital Consulting estimates that only 18pc of employees are encouraged to recommend friends or acquaintances, despite one in every four (24pc) knowing someone they could refer straight away.

DB pensions move into surplus

UK pension schemes have moved into overall surplus for first time in over five years. The move into surplus marks more than a £50bn improvement in FRS17 scheme net valuations in two months.

M&S pension letter theft puts staff at risk of fraud

Marks and Spencers is offering its staff free credit checks after personal details intended for a pensions letter were stolen. The offer is being made to 26,000 employees at risk of identity fraud, after a laptop containing salary details, addresses, dates of birth, and National Insurance and phone numbers of staff, was taken.

Aim-listed firms frugal on pay

Less than 10pc of Britain's smallest public companies reward their top executives with significant performance-related pay according to a new survey. Only 40 executives from 430 small cap and Aim listed companies received more than £100,000 in long-term incentive pay last year according to the Executive Director Total Remuneration Survey 2007 from corporate governance firm Manifest and independent remuneration consultancy MM&K.

Cash incentives used to cut CO2 emissions

MITIE Property Services is using financial incentives to encourage its employees to choose lower emission cars through its employee car ownership scheme (ECO). Each employee that chooses a vehicle with a 10pc lower CO2 emission than their benchmark car (the car they would have had as a company car) will be given an extra £10 per month in their car allowance.

Pension costs hurt employers

Pension scheme costs have been the fastest growing business overhead for three quarters of employers in the last year according to Capita Hartshead. Increases in professional fees, the costs of compliance and changes in long-term assumptions were the main culprits rated by 74pc of employers who took part in the pension scheme administrator’s annual survey.

Global share plan breaks new ground

Leading global natural resources firm BHP Billiton has launched a unified share purchase plan across 26 countries. One of the most complex and ambitious schemes of its type, it becomes the first common benefit offered by the company - formed from the merger of two companies five years ago - that is offered to all its 39,000 staff worldwide.

Virgin buys Leisure Vouchers

Virgin Voucher and Virgin Experience Days brand licence holder Acorne Ltd has acquired Leisure Vouchers from Whitbread for an undisclosed sum. It is suggested that Whitbread were planning to close Leisure Vouchers until making a last-minute decision to sell.

Oxfam makes payroll giving easier

Ignorance of the tax breaks on payroll giving is losing charities £1bn a year according to Oxfam. An Oxfam/YouGov Plc survey found that only 4pc of employees currently use payroll giving and that a third of working Brits would donate an average of £9.60 a month through their salary if they knew how.

Revenue explains itself

The Revenue has been forced to clarify its new NI anti-avoidance rules after being deluged with enquiries from worried employers. Its anti-avoidance document published on 23 March requested that certain salary sacrifice schemes be disclosed to the Revenue for approval, but its guidelines had left many unsure what was covered and what was not.

Emap’s podcast is a benefit first

Emap has become one of the first ever employers to use a podcast to help communicate its benefits. The media group used the audio file, which can be downloaded from its intranet, to help take-up for its annual free offer of £840 worth of Emap shares.

New cancer cover - £30 per year at 30 years old and £60 at 60

An affordable way of providing access to life-saving cancer drugs denied by the NHS has been launched by WPA. The health insurer's new scheme ‘mycancerdrugs’ provides £50,000 towards expensive drugs, such as Herceptin and Avastin for people who do not already have medical insurance.

Council cuts absence through EAP

Westminster City Council has attributed a large drop in sickness absence to the implementation of an employee assistance programme. It has seen rates fall from 10.5 days per employee to 8 days since April last year. The drop matches the success the DWP has seen in cutting sickness absence after it extended the services on offer in its EAP.

Flexible working moves mainstream

A report by the British Chambers of Commerce has revealed the extent to which UK employers are providing flexible working. Just under 90pc of the businesses who took part in the survey ‘Work and Life: How business is striking the right balance’ say they provide their employees with some form of flexible working.

Drug development firm launches flex

Drug development firm, Cambridge Antibody Technology (CAT) has launched flexible benefits for its 300 staff. CAT, which won an award for its rheumatoid arthritis drug and was recently acquired by the AstraZeneca group, hopes that flex will help refocus employees attention on their rewards and benefits package, following on from the launch of online reward statements.

Employers rate a green fleet more important than duty of care

The environment has overtaken duty of care as employers’ most important agenda for their car fleets, according to GE Commercial Finance, Fleet Services. According to GE’s quarterly Company Car Trends report, which interviewed 834 people, 94pc now list the environment as their top consideration when making fleet policy decisions for the next year - up from 57pc 12 months ago.

DWP rejects incentives to beat absenteeism

The Department for Work & Pensions (DWP) has rejected using incentives to help cut sickness absence rates. The announcement made at the CBI/ Axa Absence Management Conference this week is a U-turn on comments made just over a year previously, when DWP minister Lord Hunt said that money for incentives had been set aside to tackle average absence rates of 12.6pc a year.

Public sector keeps sickness absence high

Workers took an average of seven days off sick last year – a rise of half a day on 2005. Average absences ranged from three days a year to 12 according to the latest CBI/ AXA survey, which calculates that the total days lost for all employers is 175 million at a cost to the economy of £13.4bn.

Centrica tackles climate change with new benefit

Centrica is one of the first companies to lend its support to a new give-as-you-earn carbon offsetting programme. The service offered by Vebnet, in partnership with PURE, a charity promoting climate change, enables employees to calculate their carbon footprint online and choose to offset all or part of it in a tax-efficient way through their monthly pay.

Revenue lays down the law on NI avoidance

Benefits designed with the sole purpose of avoiding National Insurance are under threat after new guidance was issued by the Revenue. From May 1 providers, accountants and tax consultants will be obliged to disclose for approval any NI avoidance schemes they are promoting - though government approved salary sacrifice arrangements for childcare vouchers, bikes and mobile phones are not believed to be affected.

Anachem cleans up

Anachem, a leading distributor of scientific equipment, is offsetting its fleet’s carbon dioxide (CO2) emissions by planting 4,000 trees. It is one of the first companies to sign up to ALD Automotive’s unique CARbon Offset initiative to take action on climate change.

Denplan reports record growth

Denplan has seen a third of a million patients join in 2006 following controversial reforms that have cut back NHS provision. In the three months following the reforms - which have sent around 10pc of practices private - Denplan registered more new patients than in the whole of 2005.

Double windfall for LloydsTSB staff

Lloyds TSB 62,000 staff are enjoying a double windfall of free shares and bonus after the group reported profits of £4.25bn. The payout totals £205m and includes a share award worth 3pc of each employee’s pay, up to a maximum of £3000.

Employee Rewards and Benefits Conference – the lowdown

The debates raged at the Employee Rewards and Benefits fourth annual conference. Are employers morally obliged to provide financial education? Does salary outweigh benefits? Is auto enrolment the answer to pensions saving? But perhaps none were more heated than the final session of the day.

Budget: More rules to follow on cars

Expect more penalties for the most polluting cars - that is the message from fleet providers and tax consultants following the Budget. Gordon Brown has already confirmed an increased excise duty for the most polluting cars to £300 from next year and to £400 from the following year, while reducing duty for low emission cars to £35 from next year. Providers expect this taxation trend to continue.

L&G makes bold claim on income protection

Legal & General claims to have answered employers concerns over the cost and relevancy of income protection with a new plan that it bills Progressive. Key features are premiums estimated at 20pc below average, a commitment to finding alternative employment within four years and the ability, where necessary, for L&G to pay salary, pension contributions and life insurance premiums for the employee beyond that time frame.