EV Salary Sacrifice Statistics: UK 2026
In January 2026, the UK government launched a campaign to encourage people to switch to using electric vehicles. Two of the campaign’s main points are how motorists can save a substantial amount of money every year and how more than 50,000 motorists have made the switch as a result of the Electric Car Grant. EV salary sacrifice schemes offered by many organisations are also helping people switch to a cleaner, greener mode of transport. Additional incentives, such as reduced running costs and lower charging costs, are also making EV ownership even more financially attractive.
To find out what 447,143 opinions of people leaders in the UK were about EV salary sacrifice, we utilised AI-driven audience profiling to synthesise insights from online discussions for 12 months, ending on May 6th, 2026, to a high statistical confidence level. Our findings reveal how popular these schemes are, their benefits, concerns about them, and what’s possibly preventing more organisations from implementing them.
What do people leaders see as the biggest employee benefit of an EV salary sacrifice scheme?
Tax and insurance savings the biggest benefit of EV salary schemes for 38% of people leaders.
Some benefits are bigger than others:
EV salary sacrifice schemes have numerous benefits, with some bigger than others. For 38% of people leaders, the biggest benefit is significant tax and National Insurance savings, and they’re not wrong. The EV benefits-in-kind (BiK) tax rate is only 4% (increasing by 1% per year until 2028), which is decidedly lower than petrol/diesel alternatives, making it incredibly cost-effective. 20% taxpayers typically see ~£140 total monthly savings, while 40% taxpayers see ~£210 total monthly savings, and higher earners (£100k+) potentially could see up to 60% total monthly savings.
For 29% of our audience, the biggest benefit is inclusive access to EVs for those who could not otherwise afford one. This makes sense, as these schemes reduce costs by up to 40% through pre-tax salary deductions, remove upfront deposits, and offer all-inclusive packages covering insurance, maintenance, and charging.
According to 26%, the biggest benefit is the simplicity of having everything managed through payroll, while for the remaining 8%, access to a brand new electric vehicle at a lower cost is the main benefit. Overall, big or small, every benefit is important, as they all help incentivise a greener way of driving.
What are people leaders' concerns about the EV salary sacrifice scheme?
37% of people leaders worry about EV salary sacrifice scheme employees leaving.
Concerns about leaving top the list:
Despite the benefits they offer, EV salary sacrifice schemes come with a few potential drawbacks. 37% of our audience’s biggest concern is the risk to employees if they leave their job or go on leave. This echoes survey findings that reveal that 92% of finance professionals believe these schemes carry a high risk.
In the event that someone leaves the company, these professionals are worried they’ll be left with a car in the car park that no one wants. For 26% of our audience, the biggest concern is the cost or financial risk to the organisation, which aligns with the findings we’ve just mentioned.
Lack of demand insight and expertise is slowing the rollout
15% cite uncertainty about employee demand or uptake as their biggest concern, suggesting they haven’t canvassed employees to gauge interest. 11% are mostly concerned about a lack of internal expertise to manage such a scheme, while another 11% share a similar concern, citing the complexity of administration and setup.
While setting up and managing these schemes does require some know-how, resources are available for employee training.
What helps people leaders proceed with an EV salary sacrifice scheme?
Clear breakdowns of financials helps 32% of people leaders proceed with EV salary sacrifice schemes.
Costs and understanding are good motivators for moving forward:
For 32% of people leaders, a clear breakdown of costs and savings would most help them move forward with an EV salary sacrifice scheme. This makes sense. As the monthly payments come out of employees’ gross salary (before tax), there are significant tax advantages (20% for basic rate taxpayers and 40% for higher rates). On a car which has an RRP of around £35,000, a 20% taxpayer would save £1,600 over the course of a four-year lease, with that figure rising to £4,300 for a 40% taxpayer.
27% feel that a simple guide to how implementation works would help them move forward with a scheme, as they’re still uncertain about what implementation entails. 20% would move ahead if the scheme received senior leadership support or sign-off. This segment sounds like they have all the information they need and have already worked out how to implement it in their organisation, with senior leadership support being the only thing lacking.
15% opine that a trusted provider to guide them through the process would be helpful. The remaining 6% say employee demand data or case studies would help them move forward, which ties in with what we said above about some organisations possibly not having canvassed employees to gauge interest.
What’s important for people leaders when choosing an EV salary sacrifice provider?
Quality and vehicle range are important for 37% of people leaders choosing an EV sacrifice scheme.
Important factors vary when it comes to providers:
More than 473,000 new battery electric cars were registered in 2025, accounting for 23.4% market share. More cars mean more choices. This is good news for the 37% of our audience who cite the quality and range of vehicles available as the most important factor when choosing an EV salary sacrifice provider.
32% feel that the level of support offered to employees is the most important factor when choosing a provider. This segment is likely worried about their employees opting into a scheme that could sour if they don’t receive sufficient support.
According to 26%, cost and value for the organisation is the most important consideration, while 6% say the most important factor is the simplicity of the administration process, as they’re worried about increasing the workload of the payroll staff who will administer the scheme.
Is EV salary sacrifice a priority for people leaders' organisations?
EV sacrifice schemes a top priority for 45% of people leaders’ organisations.
EV salary sacrifice scheme a priority for most organisations:
EV salary sacrifice is a top priority on the organisation benefits priority list for 45% of people leaders, who explain that they’re currently focused on it. One reason for this is that, according to one survey, 62% of respondents believe they can meaningfully contribute to the UK’s targets of halving greenhouse gas emissions by 2030 and achieving net-zero by 2050.
For 43%, it’s a medium priority, with them explaining that EV salary sacrifice is on their roadmap. This fits in with what we’ve seen about administration concerns, support from leadership, and educating employees about these schemes. For 12%, EV salary sacrifice hasn’t made their organisation benefits priority list yet, suggesting they’ve prioritised other benefits due to greater urgency.
Are people leaders' organisations offering EV salary sacrifice schemes?
Only 14% of people leaders’ organisations offer EV salary sacrifice schemes.
There’s plenty of opportunity for schemes to be implemented:
28% of people leaders organisation’s currently don’t offer an EV salary sacrifice scheme, although it has been discussed internally. These organisations may want to learn more about employee interest, scheme setup and administration, and possible risk mitigation before deciding to offer a scheme. A quarter (25%) of our audience admits their organisation doesn’t currently offer a scheme, nor have they considered doing so. This may be due to the potential risks involved, the need for additional staff training, or a lack of interest on the part of employees.
20% are unsure whether their organisation offers a scheme and don’t know what their organisation’s current position is. 14% say their organisation does offer an EV salary sacrifice scheme, and 13% explain that, while their organisation doesn’t currently offer a scheme, they are actively looking into it.
EV salary sacrifice schemes growing in popularity
Despite only 14% of people leaders’ organisations currently offering an EV salary sacrifice scheme, the popularity of these schemes is on the rise.
The British Vehicle Rental and Leasing Association reports that around 80,000 UK employees are driving electric cars through salary sacrifice schemes, and that car salary sacrifice has increased by 68% in the UK.
Are people leaders familiar with how EV salary sacrifice schemes work?
75% of people leaders are familiar with how EV salary sacrifice schemes work.
Most people leaders understand these schemes:
Given that the majority of our audience say their organisations don’t have EV salary sacrifice schemes, you might expect most people leaders to be unfamiliar with these schemes. However, the opposite is true.
18% are very familiar with them and understand the full mechanics, suggesting they have either looked into them extensively or acquired a vehicle through such a scheme. 25% are also fairly familiar with them and have a good general understanding. This sounds like they’ve heard about them and have done their own research. Another 20% are somewhat familiar with these schemes, knowing the basics but not the details.
Knowledge gap holding back wider adoption
On the other side are the 12% of people leaders who are slightly familiar with these schemes, saying they’ve heard of them but know only a little about them. Then there are the remaining 24% who are not familiar with them at all, and these schemes are new to them.
It’s worth noting here that a YouGov-linked survey reported that 74% of employees would like access to an EV salary sacrifice scheme once the benefits were explained to them. If people leaders were better educated on the topic, it would lead to greater incentivisation to switch to an EV.
Are people leaders confident explaining EV salary sacrifice benefits to employees?
60% of people leaders can confidently explain EV salary schemes' financial benefits to employees.
Confidence in sharing knowledge is generally good:
One of the many benefits of an EV salary sacrifice scheme is that the employee saves 20-50% on the cost of any electric car by paying from their salary before tax. However, for employees to make a fully informed decision requires people leaders to explain the financial benefits to them. But whether leaders are confident about doing this depends on who you ask. 26% say they’re very confident and can explain these benefits clearly and fully.
However, 24% confess they’re not confident at all, as they don’t fully understand these schemes themselves. Given what we’ve seen above, this may come down to the fact that their organisation doesn’t have a scheme.
18% feel they’re fairly confident, as they understand the key parts of these schemes, while 16% are somewhat confident and would need supporting materials to explain the financial benefits properly, which may be because their organisation has discussed but not implemented a scheme yet. Another 16% say they’re not very confident and would find it difficult to explain the benefits, which points to a need for them to learn more.
How do people leaders' organisations support employees' commuting costs?
Only 7% of people leaders’ organisations offer travel and commuting benefits.
Current commuting support is minimal:
50% of people leaders say their organisation has discussed supporting employees with travel or commuting costs, but hasn’t put anything in place to actually do so. This may be because the organisation is weighing up the pros and cons of doing so, with no guarantee that they will help shoulder the burden.
Meanwhile, 41% say their organisation is reviewing their travel benefits offering, which presumably means they’re considering increasing travel allowances, looking for alternative ways to offer travel benefits, and possibly implementing an EV salary sacrifice scheme.
Limited existing support
Just 7% explain that their organisation already offers a range of travel and commuting benefits, while 2% say their organisation does not provide any travel or commuting support at all. With grants of up to £5,000 available to help employees travel to work more sustainably and healthily, organisations may have a valuable opportunity to expand their employee benefits while supporting greener commuting options.
How do people leaders' organisations communicate new benefits to employees?
75% of people leaders’ organisations use email or newsletters to communicate new benefits to employees.
One method communication method dominates:
Three-quarters (75%) of our audience’s organisations typically use email or internal newsletters to communicate new benefits to employees. And they’re not alone. According to Workshop’s 2026 Internal Communications Trends Report, 95% of teams use email and 81% say it’s their most effective channel. The remaining 25% admit their organisation does not have a structured approach in place for communicating new employee benefits. This suggests they don’t implement new benefits often enough to need a structured approach, or that they would do so using whatever channels seem appropriate at the time.
Who has final authority over employee benefits in people leaders' organisations?
HR or people teams have final authority over 55% of employee benefits.
Those in charge are all people-focused:
According to 55% of people leaders, the HR or People team has a significant influence on the final decision-making authority over employee benefits in their organisations. This is to be expected, as HR needs to ensure compliance, help manage costs, and design attractive benefits packages.
As for the rest of our audience, a dedicated Reward or Compensation team has ultimate authority for 19%, while 25% indicate that these teams have a significant influence. Combined, these findings show that employee benefits decisions are often shaped by a combination of HR, people, and reward specialists working closely together.
How do people leaders' organisations approach sustainability commitments?
40% of people leaders’ organisations are developing sustainability approaches.
Sustainability is a growing trend:
Research shows that 52% of UK employers said meeting sustainability goals was a major reason for implementing a salary sacrifice car scheme.
This growing focus on greener workplace initiatives is reflected in how organisations are approaching their wider sustainability commitments. 40% of people leaders reveal their organisations are currently developing their sustainability strategy, which may explain why relatively few organisations represented by our audience already offer EV salary sacrifice schemes. They're still working on it. Meanwhile, 26% say their organisations recognise the importance of having a formal sustainability approach but have yet to put one in place, suggesting it has not yet become a business priority.
Another 26% indicate that sustainability isn’t currently a strategic focus, while just 7% work for organisations that have a formal net zero strategy with clear targets. These numbers clearly show how widely sustainability priorities still vary between organisations.
How do people leaders describe their workforce’s commuting habits?
33% of people leaders’ workforces are mostly hybrid.
Hybrid work models lead the way:
According to 33% of people leaders, a mostly hybrid mix of home and office is somewhat fitting as a description of their organisation’s workforce when it comes to commuting. This corresponds with figures from Statista, which reveal that, in March 2026, 12% of people in Great Britain worked from home exclusively, while 30% worked from home and travelled to work, and 42% only travelled to work.
A little more than a quarter (26%) agree that their organisation’s workforce is mostly remote, with occasional travel fits somewhat as a description. However, for 12%, this description isn’t quite right for their workforce. For another 12%, saying their workforce is highly varied with no single commuting pattern is a perfect description, although 8% say this only fits somewhat.
What industry do people leaders' organisations operate in?
90% of people leaders work in technology organisations.
The technology sector dominates:
An overwhelming majority (90%) of people leaders in our audience operate in the technology industry. This industry is big in the UK. In 2023, the UK’s digital and technology sector contributed an estimated £207 billion in gross value added and employed 2.6 million people.
Comparatively, although the sector is large, only 9% operate in the retail and consumer goods industry, while the remaining 1% operate in the healthcare and life sciences industry. This divide reflects the strong presence and influence of the UK technology sector, particularly in conversations around employee benefits, workplace policies, and emerging mobility trends.
How many employees do people leaders' organisations have?
76% of people leaders organisations have 5000+ employees.
76% of people leaders are in organisations with 5,000 or more employees, while 22% are in organisations with 1,000 to 4,999 employees. Such high numbers of employees may put some organisations off implementing EV salary sacrifice schemes due to the administration involved.
In comparison, just 1% say their organisation has 50 to 249 employees. This stands out, as in the UK the vast majority of British businesses are much smaller. Government figures show there were 5.7 million private sector businesses in the UK at the start of 2025, of which 5.64 million were small businesses employing fewer than 50 people.
What is the job title of people leaders?
82% of people managers in our audience fill the role of people director.
People directors lead the way:
82% of our audience have the job title of People Director, while 13% have the title of Chief People Officer. 5% say their title is HR director.
In some companies, the People Director or Chief People Officer is the same job as the HR Director or Chief HR Officer. In others, these roles have distinct differences, with People Director being a senior leadership role responsible for the entire employee lifecycle. They usually focus on workplace culture, employee engagement, performance management, and acquiring talent.
Where are people leaders' organisations headquartered?
Glasgow is home to 50% of people managers’ organisations.
Scotland beats England in location:
The organisations of half our audience are headquartered in Glasgow. Scotland’s largest city by population is embracing electric vehicles in a big way. In December 2025, the city announced it had launched Scotland’s largest procurement exercise to install at least 3,000 new charge points in local authority-owned car parks and in on-street locations across the Glasgow City Region.
22% of our audience’s organisations are headquartered in Manchester, and those of 12% in Edinburgh. Birmingham is where the organisations of 8% of people leaders are headquartered, while those of only 7% are headquartered in London.
With the audience largely concentrated in major UK regional cities rather than being London-centric, it's evident that EV and workplace mobility discussions are increasingly being driven by organisations outside the capital. As car ownership is generally higher outside London, workplace EV incentives and charging infrastructure are even more relevant and impactful in these regions.
From awareness to adoption: the next phase for EV schemes
These insights make it clear that the majority of people leaders recognise the benefits and value of EV salary sacrifice schemes and how they go beyond making electric vehicles more accessible to more employees. They can also help organisations (and employees) achieve their sustainability goals.
It’s clear, though, that many people leaders and organisations in the UK simply don’t know enough about these schemes to be able to make a definitive decision to implement them.
That said, it looks like a growing number of organisations are seriously looking into them, meaning we’re likely to see many more EVs on the roads in the near future.
About the data
Sourced using Artios from an independent sample of 447,143 opinions of People Leaders in the UK across X, Quora, Reddit, Bluesky, TikTok, and Threads. Responses are collected within a 95% confidence interval and 5% margin of error. Results are derived from what people describe online, from opinions expressed online, not actual questions answered by people in the sample.
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