The landscape of employee benefits is evolving, with electric vehicle (EV) schemes becoming increasingly popular.
- UK Power Networks’ successful EV initiative reflects a shift in employee priorities towards sustainability and financial savings.
- Over 45% of UK Power Networks’ workforce has shown interest in their salary sacrifice EV scheme.
- 300 vehicles have already been delivered to employees under this scheme, with 66 more awaiting delivery.
- Employees appreciate the scheme’s inclusion of costs like maintenance and insurance, easing the transition to EVs.
The realm of employee benefits is undergoing significant transformation as traditional offerings like pension schemes become less attractive to the modern workforce. Employees today value sustainability and cost-efficiency when considering the benefits offered by their employers. The UK’s largest electricity distributor, UK Power Networks, is making strides in this domain through its innovative electric vehicle (EV) scheme.
The EV scheme at UK Power Networks has captured the interest of more than 45% of its employees, indicating a substantial shift towards valuing environmentally friendly and financially beneficial benefits. This scheme allows employees to lease an electric vehicle via a salary sacrifice arrangement with the leasing company, Tusker. The appeal of this initiative is evident from the fact that 300 vehicles have been delivered to employees, with an additional 66 vehicles on the way.
This beneficial scheme does not entail any upfront costs for the employees. It inclusively covers maintenance, insurance, tax, and roadside assistance, thereby simplifying the transition to electric vehicles. Popular cars among the employees have included models such as the BMW iX3, Nissan Leaf, Kia EV6, and the Mercedes-Benz EQB. Robert Greenoak, from the Low Carbon Readiness team, who leased a Nissan Leaf, expressed that the scheme is ‘a win-win-win’ saving ‘time, money and is good for the environment’. The built-in insurance aspect, in particular, has been highlighted as a significant advantage, removing the administrative burden of seeking separate coverage.
The strategic shift by UK Power Networks aligns with their broader aim to meet evolving employee expectations and promote sustainable lifestyles. Steve Remnant, Head of Reward and HR Services, emphasised the importance of offering creative benefits that attract and retain high-calibre talent, especially amongst younger generations who are increasingly conscious of employers’ roles in achieving environmental goals. This scheme is part of a larger suite of benefits offered, which also includes tenancy loans, cycle-to-work grants, mental health services, and payroll deductions for technology purchases.
Additionally, Tusker, the leasing company partnering with UK Power Networks, has committed to offsetting carbon emissions for all vehicles since 2010, aiming for a zero-emission fleet by 2030. Kit Wisdom, Tusker’s Managing Director, underscored their objective of reducing emissions by encouraging the adoption of newer and more eco-friendly vehicles, recognising the growing demand among customers to contribute positively to the environment.
The EV scheme by UK Power Networks exemplifies a modern approach to employee benefits, prioritising sustainability and aligning with the values of today’s workforce.
