Rising fuel prices continue to put pressure on both employees and employers across the UK. Figures released earlier this week showed that the average price of petrol has increased by 26.6p per litre, the highest rise since the war in Ukraine began in February 2022. Diesel prices are also continuing to climb, currently standing at 184.96p per litre for the average family car.
At the same time, wider global events are adding further financial strain on businesses. The Independent recently reported that 80% of UK companies have already been financially impacted by the Iran conflict, with organisations facing shipping disruptions, rising energy bills, and increasing material costs.
With challenges expected to continue over the coming months, many employers are now looking at practical ways to reduce costs and better support their workforce. In this article, we explore some of the options available to businesses to manage rising fuel prices. This can be from 4-day working week and salary sacrifice schemes to flexible working arrangements and other cost-saving initiatives that can help ease financial pressure for both employers and staff.
Financial Challenges for Employees
Car sharing
Car sharing can be a simple but effective way to help employees manage rising fuel costs. If several members of your team live in the same area, they may already be considering sharing journeys to work but have not yet raised the idea themselves. Sometimes, all it takes is for employers to start the conversation.
Consider mentioning car sharing during your next team meeting and encourage employees to connect with colleagues who travel similar routes. Not only can this help reduce fuel expenses, but it can also support sustainability goals and strengthen team relationships.
You could also take this a step further by creating an optional staff sign-up form where employees can register their interest and share the areas they commute from. Setting up a dedicated Microsoft Teams chat can also make it easier for employees to coordinate travel arrangements and communicate with one another.
Flexible working
We understand that flexible working is not possible for every business or every role. However, where it can be offered, even on a limited basis, it can make a real difference to employees facing rising travel costs.
Allowing staff to work from home just one or two days each week can help reduce fuel expenses, parking costs, and daily commuting pressures. At The HR Booth, our team works in the office twice a week and has the flexibility to work remotely for the remainder of the week. This approach has helped reduce travel costs for employees, particularly those with longer commutes, while still maintaining collaboration and team connection.
4-day working week
We understand that flexible or remote working is not possible for every organisation, particularly in industries where employees need to be on-site or travel regularly as part of their role.
One solution some businesses are exploring is a 4-day working week. One of our clients recently introduced this approach after recognising that rising fuel costs were making daily travel increasingly unaffordable for employees who commute long distances to their base location.
Their team still works their full 40-hour week, but across four days instead of five. This allows the business to maintain productivity and service delivery, while helping employees reduce travel and fuel expenses by cutting out an extra commuting day each week.
If your business operates company vehicles, vans, or a wider fleet, this could also help reduce fuel usage and vehicle running costs.
Before implementing any changes, employers should ensure working hours remain compliant with Working Time Regulations. Employees must receive at least 11 consecutive hours of rest between shifts, and employers should also consider the impact longer working days may have on wellbeing, productivity, and health and safety.
Flexible Start and Finish Times
Can you allow staff to start a little later and finish earlier? This can reduce costs significantly as they are spending a lot less time stuck in traffic. This can also help with car-sharing to accommodate different travel schedules.
Salary Sacrifice
A salary sacrifice scheme, such as an electric vehicle scheme, can help employees reduce the financial pressure caused by rising fuel prices while also lowering their monthly motoring costs.
With fuel prices continuing to rise, electric vehicles can offer a much more affordable day-to-day running cost compared to petrol or diesel cars. Employees also benefit from lower maintenance costs, reduced road tax, and in many cases, access to newer, higher-specification vehicles they may not otherwise have considered affordable.
For employers, salary sacrifice schemes can also form part of a wider employee benefits and retention strategy. Offering practical financial support during periods of rising living costs can demonstrate a genuine commitment to employee wellbeing while helping businesses remain competitive in attracting and retaining talent.
In Conclusion
Rising fuel prices continue to place pressure on both employers and employees. While there is no single solution, small changes such as flexible working, car sharing, adjusted working patterns, and salary sacrifice schemes can help reduce costs and ease financial strain.
Taking proactive steps to support employees during challenging times can improve wellbeing, retention, and engagement, while also helping businesses manage rising operational costs more effectively.
At The HR Booth, we support businesses with practical HR solutions tailored to their needs. If you would like advice on flexible working, employee benefits, or cost-saving initiatives, our team is here to help.
