The Electric Car Scheme vs
Octopus Electric Vehicles (OEV)
Compare EV Salary Sacrifice Schemes from The Electric Car Scheme and Octopus EV
Choosing an EV salary sacrifice provider is a strategic decision. The scheme you select will shape pricing for your employees, the level of protection your business will receive and how easy the benefit can run at scale. Both The Electric Car Scheme and Octopus EV support organisations that want to offer electric cars through salary sacrifice. The key differences are in vehicle choice, used and hybrid availability, early termination protection, charging, service and how each provider helps employers manage cost and employer National Insurance savings.
At a Glance: Key Differences Between The Electric Car Scheme and Octopus EV
The Electric Car Scheme offers electric and hybrid cars, and has the broadest range of used EVs available at any time. Octopus EV focuses on new and used electric cars, and does not currently offer hybrids.
The Electric Car Scheme aggregates pricing from the UK’s top leasing companies, acting as a broker so your employees can access the best price on any car in the market through a single platform. Octopus EV acquires and owns its stock of cars and this does not guarantee best pricing in the same way.
The Electric Car Scheme includes Complete Employer Protection as standard, with no excess, no caps and cover from day one. Octopus EV protection has caps on usage and does not cover some scenarios such as employees not paying fees or damage charges.
The Electric Car Scheme offers the most comprehensive charging package in the market, including salary sacrifice for home, public and workplace charging, plus energy and tariff savings. Octopus EV support is focussed on public charging, a home charger and tariff bundle.
Both providers run schemes at no cost to the employer, but The Electric Car Scheme gives employers full control over whether to retain employer NI savings or reinvest them to improve employee car pricing.
The Strongest Prices for Employee Electric Cars
The Electric Car Scheme aggregates rates from the strongest lease funders in the UK and benchmarks them through a single pricing engine. This gives employees a true best in market view, rather than pricing from a single leasing company. Using this model, we can access almost any car available in the market, across new and used electric and hybrid vehicles, subject to funder approval.
Octopus EV sources electric cars directly, as they own the vehicles themselves. As a result, pricing and availability are driven by their own inventory rather than a panel based view of the wider market.
Vehicle Selection Comparison by Provider
The Electric Car Scheme
Electric and plug in hybrids below 75 g per km CO2
Hundreds of used EVs and hybrids available at any time, often 30-40% cheaper than new equivalents
Widest selection of cars through access to the strongest leasing partners
Octopus EV
Electric vehicles only
Does not currently offer hybrids
Does not have a large range of used EVs in the same way
For larger organisations with many employees in the basic-rate tax band, this breadth of used and hybrid choices makes the scheme accessible for a much higher share of the workforce, not just higher earners.
Risk and Early Termination Protection Comparison
92% of senior HR professionals believe salary sacrifice carries risk if an employee leaves their organisation while they still have a car. Strong early termination protection is therefore essential for large organisations when considering an EV salary sacrifice scheme.
The Electric Car Scheme’s: Complete Employer Protection
The Electric Car Scheme includes Complete Employer Protection as standard from day 1. This protects the employer from early termination charges when a lease has to end early due to unforeseen circumstances such as resignation, redundancy, dismissal, parental leave, long term sickness, death and more.
How does Octopus EV’s
protection compare?
Octopus EV protection includes some events but operates slightly differently, below are the some of the key differences:
Exclusion periods apply in some cases such as redundancy from 3 months
Caps apply, for example a limit of 10 cars or 10% of fleet per year
There is limited cover if an employee does not pay early termination fees or damages
For larger employers with many salary sacrifice cars on the road, these caps and exclusions can leave material risk.
| Scenario | The Electric Car Scheme | Octopus EV | |
|---|---|---|---|
| Resignation | From 3 months* | From 3 months | |
| Redundancy | Yes from Day 1 | From 3 months | |
| Dismissal | Yes from Day 1 | From 3 months | |
| Parental Leave | Yes from Day 1 | Yes | |
| Long Term Sickness | Yes from Day 1 | Yes | |
| Loss of Licence | Yes from Day 1 | Yes | |
| Death | Yes from Day 1 | Yes | |
| Excess to pay | None | None | |
| Caps or limits | None | Yes (10 cars or 10% pa) | |
| If employee doesn't pay for ET fees | Yes | No | |
| If employee doesn't pay for damage | Yes | No |
Service, Technology and Portals Comparison
Both The Electric Car Scheme and Octopus EV provide employee portals, employer support, and integrations. The differences are in breadth, flexibility and how the technology is built for large employers.
The Electric Car Scheme
Employer Portal that brings together approvals, payroll reporting, live order tracking, financial data and sustainability reporting in one place
Employee Portal for browsing cars, building quotes, adding insurance and charging, placing orders and managing leases over time
Integrations with all major benefits platforms and payroll providers, using API and SFTP connections, plus Single Sign On for employees
Dedicated Customer Success Manager for every employer, with launch support, webinars, communications packs and ongoing optimisation
Our technology is designed to minimise admin, remove manual uploads and double entry and provide real time visibility of uptake, savings and carbon impact.
How does Octopus EV compare?
Octopus EV offers an online portal, customer support and some integrations with selected benefit platforms. Information on breadth of integrations and specialist salary sacrifice tooling is not always publicly available, which may require further diligence for large employers with strict InfoSec and procurement standards.
Charging: EV Charging Salary Sacrifice Comparison
For many employees, charging is the largest ongoing cost of EV ownership. The Electric Car Scheme treats charging as part of the benefit rather than an afterthought.
Employees can salary sacrifice all EV charging at home, at work and in public through The Charge Scheme, and save around 20 to 50% on charging costs over the life of the lease
Employees can add home charge point installation within salary sacrifice and receive access to preferred tariffs such as OVO Charge Anytime with free miles included
Combined, this charging package can deliver up to £4,405 of value per employee over a typical lease term
Octopus EV are limited to public charging salary sacrifice and has tariff and charger options, but does not currently offer salary sacrifice on full charging costs in the same way as The Charge Scheme.
Cost to Run and Employer NI Sharing
Both The Electric Car Scheme and Octopus EV, the scheme can operate at no cost to the employer, with lease costs recovered through salary sacrifice and associated tax savings.
The Electric Car Scheme Structure is Straightforward:
• The lease cost is recovered directly from the employee’s gross salary
• Employer Class 1 National Insurance contributions reduce as gross salaries decrease
• Employers can also recover VAT on eligible lease costs
• As a result, the scheme can run at no net cost to the business
Employers retain control over Employer National Insurance savings
The Electric Car Scheme provides employers with flexibility over how their Employer National Insurance savings are applied:
• Retain up to 100 percent of savings to support wider business costs
• Reinvest some or all of the savings into the scheme to reduce employee costs
Many employers choose to share a proportion of these savings with employees to support affordability and maximise participation, while retaining a portion to fund wider people or climate initiatives. Approaches to Employer National Insurance savings may vary by provider and scheme design.
Why Choose The Electric Car Scheme over Octopus EV?
For organisations comparing The Electric Car Scheme with Octopus Electric Vehicles, the choice comes down to breadth of offering, protection and control.
Wider vehicle choice including hybrids and a very large used EV range
Access to almost any car in the market and consistently better pricing on key models
Complete Employer Protection with no caps, no excess and cover from day one
The most comprehensive salary sacrifice charging package in the UK
Technology, portals and integrations designed to minimise admin
A scheme that runs at no cost to the business, with full control over how employer NI savings are used
If you would like to review how this compares to your current or proposed scheme, speak with an expert at The Electric Car Scheme and we will prepare a tailored comparison for your organisation. Book a call with our Salary Sacrifice Specialists here.
Be the Hero and Make Net Zero the Obvious Choice for your Team
Reward your employees, attract the best talent and drive your sustainability goals - all with one simple, cost-free benefit: The Electric Car Scheme.