EV salary sacrifice example: How ScottishPower plugs its car scheme into its values

As a company committed to an ambitious carbon emissions reduction plan and the first integrated energy company in the UK to generate 100% green electricity, it makes sense that ScottishPower offers a range of benefits that match its values. We provide an example of how the employer introduced EV salary sacrifice to its employees.

Before beginning a salary sacrifice electric vehicle scheme with car leasing provider Tusker two years ago, ScottishPower already offered employees an (interest-free) EV loan benefit and an EV grant benefit where staff could receive financial reward in exchange for featuring company brand advertising on their electric vehicle.

EV salary sacrifice example

The decision to offer a salary sacrifice scheme was a natural addition to the existing EV benefits on offer, explains Jenny McCosh, benefits manager.

“We still have the EV loan benefit running as it works well for those employees that want to outright purchase their EV, but we also wanted to give our employees more flexibility in how they can finance a car. The lease option with Tusker is convenient and easily accessible for employees and would be a good fit with their lifestyle choices.”

It was essential that any scheme aligned with ScottishPower’s values and sustainability goals, McCosh adds. “We want our employees to be engaged with sustainability as individuals as well as employees, and everything about electric vehicles aligns with our goals while also being a good fit for what employees want in their personal lives.”

Around 9% of the workforce leases a vehicle via Tusker, and during the two years the scheme has been running there have been almost 500 vehicle orders.

It is easy to view and access the Tusker scheme via the company’s existing online benefits platform, which means engagement is high even when employees are not yet ready to commit to ordering a car.

“We’ve found that the Tusker EV scheme drives traffic through the benefits platform more generally, with many people drawn to have a look. The decision to lease a car is not one you make on the spur of the moment, it tends to be a planned decision taking into account overall family finances,” she says.

The Tusker portal lets employees browse the vehicles they are eligible for based on their salary, meaning they can price up a vehicle and come back to order it later when they and their finances are ready. “The simplicity of the user journey was important to us – how employees would browse, how they would get a quote based on them as an individual,” adds McCosh.

Because it was important that employees understand how this salary sacrifice benefit would sit alongside other commitments, communication around overall benefits, costs and qualification thresholds was also crucial.

Common questions

At the time of the scheme launch, Tusker hosted a webinar where ScottishPower employees could raise their questions on how the scheme worked and how it might impact their pay and tax commitments as well as the general running of the vehicle. Example FAQs are published alongside videos and other communications materials on the company’s benefits platform.

One of the most beneficial aspects of the relationship has been the reporting on how employees are collectively reducing carbon emissions. Based on comparisons with a typical petrol or diesel car, ScottishPower estimates that the cars on the scheme have collectively reduced carbon emissions by around 1000 tonnes a year.

“Tusker can also provide petrol/diesel and hybrid vehicles but we made the decision to only offer 100% electric as we want to live and breathe our values through the scheme and its design,” says McCosh.

The company offers bookable EV charging points at its offices and can support employees with deals on home EV charging installations if they wish to follow that route.

An added benefit of the introduction of the Tusker scheme has been the knock-on increase in interest generated for the ScottishPower EV grant scheme, for which applications have “skyrocketed”, she adds. “Our employees have really engaged with EVs and their increasing participation in the EV grant scheme shows that they are keen to be ambassadors for both the company and for the benefits of electric driving”.

Retention boost

In the tight recruitment market for green skills, offering the chance to lease an environmentally friendly car can be a differentiator in terms of attraction and retention.

“If you’re leasing a car for three years it suggests there’s an intention to stay. The retention of our dedicated green workforce is important to us, and the EV salary sacrifice scheme is one of a suite of employee benefits that help us make a difference in our mission for a cleaner, greener future for all.

“A benefit like this is reinforcement that our reward package is not just about pay, it’s also about alignment to values,” she concludes. “ScottishPower’s Social Impact Report shows the range of ways we support our people and in turn the difference that’s making to a cleaner, greener future for all.”

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