Your Co-op Energy is aiming to make electric vehicles (EV) more accessible and affordable for businesses’ employees with the launch of a salary sacrifice scheme.
It has partnered Octopus Electric Vehicles for the Electric Dreams salary sacrifice scheme, which is the first to be offered by a co-operative in the UK.
Businesses are able to lease an EV for their employees, who then sacrifice a portion of their salary for the vehicle, with no upfront costs. As this deduction is taken from the gross salary before tax and national insurance, it can result in savings of up to 40% in monthly vehicle costs.
The deduction covers the monthly cost of a brand new electric car, as well as insurance, servicing, maintenance, repairs, MOT, tax, tyres and road assistance, over an agreed term and mileage.
As EVs are currently often more expensive to purchase outright than internal combustion engine (ICE) vehicles, the savings made through the Electric Dreams scheme can enable greater uptake.
“We know that increasing the number of electric vehicles on our roads can have a huge impact in reducing emissions and helping to tackle climate change, but for many people the upfront costs of purchasing or leasing a car themselves are too high,” Lizzie Hieron, chief operating officer, Your Co-op Business Solutions, said.
Electric Dreams was first launched by Octopus Electric Vehicles earlier this year, with an aim of offering 100% electric salary sacrifice schemes to businesses. At the time, 15 companies - including Purplebricks and Huel – were signed up to the scheme, with Ohme providing charging infrastructure.
Meanwhile, E.ON also launched an EV salary sacrifice scheme this year, with this enabling non-company car drivers to access a range of EVs with an option to also purchase a home chargepoint.