EV salary sacrifice orders up 32% as employees use workplace benefits to cut fuel bills

loveelectric data points to a shift in how UK workers are responding to rising pump prices 

May 27 - Electric vehicle salary sacrifice orders placed through loveelectric grew 32% in Q1 2026 against the same period last year, as employees look increasingly to their employer to reduce the cost of running a car. 

Petrol has climbed past 150p per litre and diesel is edging toward £2. The Office for National Statistics confirmed inflation rose to 3.3% in March, with fuel being a significant contributor. loveelectric says its platform data suggests employees are actively running the numbers and finding that salary sacrifice makes an EV cheaper to run than the petrol or diesel car they are replacing. 

The company puts the average monthly saving for an employee on its platform at £280, equivalent to more than £3,300 a year. 

Steve Tigar, Founder & CEO of loveelectric, said:

"The seemingly ever-increasing cost of living has fundamentally changed what a benefit needs to be. Employees want to see benefits that are actually making a tangible difference on their actual monthly outgoings. Today, employees are looking at their payslip and wondering how it's going to stretch to the end of the month. That's why we're so passionate about EV salary sacrifice. £280 a month back in someone's pocket isn't just nice-to-have; it's the difference between a stressful month and a manageable one. Benefits in 2026 have to show up in someone's day-to-day life, anything less just isn't enough" 

Salary sacrifice allows employees to fund an EV from gross salary, reducing income tax and National Insurance liability. Depending on tax band, the saving against an equivalent private lease is between 30% and 60%. 

loveelectric, which joined the Perkbox family earlier this year, says demand has grown consistently across employee salary bands in Q1, including among lower earners accessing EVs through the scheme.