Electric Car Scheme launches salary sacrifice deal to cut charging costs
Drivers who obtain an electric car through salary sacrifice are being offered a new way to save up to 50% on charging costs.
The Electric Car Scheme, which manages salary sacrifice EV leasing for more than 1,000 UK companies, has launched ‘The Charge Scheme’ to cover both home and public charging payment via salary sacrifice.
It says this approach could save drivers up to £1,000 a year on charging as well as offering employers similar benefits.
While demand for EVs continues to grow, the cost of charging, especially in public, is still seen as a barrier for some drivers. Those with a home charger and the cheapest EV tariffs can pay as little as 2p per mile to run a car, but the picture is very different for drivers who rely on public devices.
According to the RAC’s Fuel Watch, the average cost of charging at a rapid or ultra rapid charger is 24p per mile. This is approximately 40% higher than the cost of petrol or diesel, and three times more expensive than charging at home using a standard domestic tariff.
The Electric Car Scheme says its new initiative aims to bring the cost of public charging down so it is equivalent or cheaper than running a petrol or diesel car. It estimates that by including charging costs in pre-tax salary sacrifice payments, drivers could cut their bills by between 20% and 50%. Through the scheme, drivers could cut ultra-rapid charging costs from 24p per mile to 17p per mile, and home charging from 8p per mile to 5p per mile.
The programme works by a company reimbursing an employee’s charging costs through their net pay. This is then ‘sacrificed’ from their gross pay, effectively reducing their salary and therefore also their tax and national insurance payments. The whole arrangement is managed through the same system as the car payments, with employees simply logging their mileage each month and the Charge Scheme calculating the charging cost.
The Electric Car Scheme’s CEO Thom Groot commented: “Despite the significant demand for EVs and sustainable transport options, EV uptake remains behind where it should be for us to meet Net Zero and ZEV targets in 2030. Cost remains the primary barrier for over two thirds of potential adopters, according to our research, and this cost is increased significantly if you don’t have access to home charging and off-peak tariffs.
“The Charge Scheme addresses this challenge by lowering the overall cost of running an electric car, and offers a practical and affordable solution to those without access to home charging.”
Participants in the Charge Scheme get access to more than 50,000 public charge points via a dedicated charge card and app, covering around 60% of the UK’s public network.
Salary sacrifice has rapidly grown as a method for employees to access electric cars more affordably. The Electric Car Scheme, which claims to offer drivers savings of up to 60%, has seen demand for its services grow 160% in the last year.
