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You are here: Home >>  Taking Action >>  Driving >>  Different Ways of Charging for Parking

Different Ways of Charging for Parking

Introducing a parking charge can be incredibly contentious, particularly where historically, parking has been free. However, charging is the most effective way to encourage use of alternatives to single occupancy car use. Generally speaking, the higher the cost, the greater the switch is likely to be to cycling, walking, public transport and car sharing.

To be fair to employees, the rate of parking cost needs to balanced against the practical alternatives that are available. Parking income should be used to help fund targeted improvements in the alternatives.

Here are different schemes and some positives and negatives to consider.  

 

Scheme

 

Method

Positives

Negatives

 

Parking permit – based on an annual standard charge.

 

 

Staff buy an annual parking permit and are charged a standard fee.

 

Can provide a deterrent to parking if charges are high enough.

 

Staff might feel they must drive to work to make buying the permit worthwhile. This 'locks' them in to driving. More flexible arrangements can encourage use of alternatives instead.

 

 

Parking permit – charge based on salary.

 

Staff buy an annual permit with the fee based on their salary level.

 

 

Can make charging less regressive and so more acceptable.

 

Some might resent paying more than others.

 

Doesn't get away from the 'locking in' issue above.

 

Pay-as-you-use.

 

 

 

Hourly charges. Payment could be at the point of use or through payroll deductions.

 

Intranet software systems should be able to allow employees to pre-book spaces by the hour, with charges deducted from salary.

 

 

 

 

Staff pay for what they use and don't feel locked in to driving.

 

Charges can be varied according to time of day to reflect pressure on spaces.

 

Pre-booking and barrier controls are an effective way to enforce the system.

 

 

Collecting fees on a daily basis can be resource intensive. 

 

Barrier systems can be expensive. 

 

Paying according to vehicle used.

 

 

 

 

Vehicles with higher CO2 emissions levels are charged a higher fee.

 

 

Fits with Government  tax policies on company car and Vehicle Excise Duty.

 

Some local authorities now charge more for residents parking permits for higher emission vehicles.    

 

 

Relatively complex to administer especially if the same person has  access to different vehicles with different emissions levels.

 

 

 

Paying according to the opportunity to use public transport, cycling or walking instead.

 

 

 

Those who could realistically use an alternative from home to work are charged more for parking.  

 

Reflects the extent of travel choices available.

 

Technically complex to administer.

 

Different people will have a different concept of what is relatively easy to do as an alternative.  

 

 

 

Cash-out approaches

 

 

 

 

First of all, publicise the fact that free parking at the organisation is seen as a hidden subsidy to drivers.

 

Then provide a cash sum to all those who forego a parking space, including those who never use a car and those who give up using one.  

 

The cash can help pay for an individual’s travel alternative.

 

The scheme could be financed over the longer term from savings in reduced parking provision or increased revenue from visitor parking.

 

Can be expensive if adequate revenue is not found to fund the initiative.

 

Need to consider tax implications


 

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