Key Insights

According to CIPD's UK Good Work Index 2026, 32% of more than 5,000 employees say money worries have affected their ability to do their job in the past 12 months.
EV charging is a substantial recurring household cost. A driver doing 10,000 miles a year on public rapid chargers spends approximately £2,260 annually, based on Zapmap's May 2026 Price Index.
Salary sacrifice charging reduces that bill by 20–50% immediately, with no change to the employee's charging behaviour or setup.
Unlike financial education sessions or budgeting tools, salary sacrifice charging delivers a confirmed monthly saving in the employee's payslip, every month.

According to CIPD's UK Good Work Index 2026, 32% of employees say money worries have affected their ability to do their job in the past 12 months. A separate CIPD survey of 2,500 workers found that 65% consider it important for their future employer to have a financial wellbeing policy.

For HR and reward teams, the message is clear: financial well-being is now a talent retention issue, rather than a welfare problem.

The challenge is that most financial wellbeing programmes stop short of addressing employees' actual bills. Financial education, EAP access, and budgeting tools all have value, but they don’t reduce what someone pays for electricity or transport each month.

For the growing share of your workforce driving electric vehicles, EV charging is one of the largest recurring household expenses they face. A driver relying on public rapid charging can spend well over £2,000 a year just keeping their car moving. This is a recurring cost that isn’t usually covered by employee assistance programs (EAP).

This is where salary sacrifice EV charging comes in to change that directly. Through The Charge Scheme, employees pay for all their charging costs from their gross salary, before income tax and National Insurance are calculated. The saving is 20-50%, applied automatically every month.

This guide is for HR and reward professionals who want to position salary sacrifice charging as part of a coherent financial wellbeing strategy, not just an EV perk.

The State of Financial Wellbeing in the UK Workforce in 2026

Financial stress isn't just a concern for lower earners. The CIPD's UK Good Work Index 2026, which surveyed more than 5,000 employees, found that 32% reported money worries had affected their ability to do their job in the past year. Notably, 25% of those earning £60,000 or more said the same, showing that this is a workforce-wide issue.

Research published by HRZone, drawing on Benifex data, found that financial stress reduces workplace productivity by 23% and makes employees twice as likely to look for new roles. The same research found that over half of workers spend at least three hours per week dealing with personal financial issues during working hours - a direct drain on output and management time.

The survey picture reinforces the strategic case. The CIPD found that:

59% of employees believe it's important that their current employer has a financial wellbeing policy
65% say it matters when they're looking for their next job
In organisations with a financial wellbeing policy in place, 76% of employees report feeling in control of their finances, compared to 64% where no policy exists

For HR and reward teams, this proves financial wellbeing programmes need to be meaningful in practice, not just present in policy. And for employers with a growing cohort of EV drivers, that means addressing EV running costs as part of the picture.

Key Takeaways

32% of UK employees say financial stress has affected their job performance in 2026
Financial stress reduces productivity by 23% and doubles the likelihood of leaving
65% of workers say a financial wellbeing policy matters when choosing their next employer
Financial pressure cuts across all income levels, making it a workforce-wide concern

Why Do Most Financial Wellbeing Programmes Miss the Running-Cost Problem?

The standard financial wellbeing toolkit has become fairly predictable. Most programmes offer some combination of financial education webinars, EAP access with money guidance, salary advance schemes, pension communications, and signposting to debt charities.

These programmes have value, but they all share the same blind spot: they help employees cope with costs rather than reduce them. A budgeting workshop doesn't lower anyone's electricity bill. A financial education session doesn't reduce what it costs to charge an EV at a motorway service station.

Since 2022, the cost of living has pushed up specific household bills (energy, transport, and fuel among them). For employees driving EVs, charging is one of those bills. It's grown substantially, and it's one that most financial wellbeing programmes don't touch.

Salary sacrifice charging is different. It reduces the cost of a specific, recurring household expense by 20–50%, every month, through their payslip (a mechanism employees already understand). This is a tangible benefit, making it easier for HR teams to make a case to the board.

Key Takeaways

Standard financial wellbeing programmes help employees manage costs, not reduce them
Since 2022, rising living costs have pushed up specific bills, including EV charging
Salary sacrifice charging cuts a real expense by 20–50%, rather than signposting toward help
For HR teams, it offers a measurable monthly saving rather than a diffuse programme spend

EV Charging as a Household Bill in 2026

For drivers without a home charger (which is a significant proportion of people, particularly those in cities and rented properties), public charging is their primary way to keep their car moving. For these employees, charging becomes a recurring household bill rather than a minor incidental cost.

What Public Charging Costs in 2026

According to the Zapmap Price Index (May 2026), weighted average PAYG prices on the public network are:

Charger type	Speed	Price per kWh	Cost per mile
Standard / Standard Plus	3kW–49kW	54p/kWh	~16p/mile
Rapid / Ultra-rapid	50kW+	79p/kWh	~24p/mile

Using a typical EV efficiency of 3.5 miles per kWh, a driver doing 10,000 miles a year on public rapid chargers uses approximately 2,860 kWh. At 79p/kWh, that comes to around £2,260 a year. Mixing rapid and slower public charging brings annual costs to the range of £1,500-£2,300, depending on charger type and network.

The VAT Gap

Public EV charging carries 20% VAT, compared to just 5% for home charging. That gap (which the FairCharge campaign has long called out) adds around 12–13p per kWh to every rapid session for drivers who can't charge at home. It hits renters and those living in flats the hardest.

For any driver doing a meaningful share of their charging on the public network, this is a recurring household bill comparable in scale to energy or broadband. Unlike those bills, it's one that employers can directly address through salary sacrifice charging.

Key Takeaways

Public rapid charging averages 79p/kWh in May 2026, per the Zapmap Price Index
A driver doing 10,000 miles on public chargers spends approximately £1,500–£2,300 per year
Public charging carries 20% VAT versus 5% for home charging, widening the cost gap
Urban and non-driveway employees are most exposed and most likely to benefit

How Does Salary Sacrifice Charging Work as a Financial Wellbeing Benefit?

Salary sacrifice lets an employee give up a portion of their gross salary in exchange for a non-cash benefit. Because the deduction happens before income tax and National Insurance are calculated, the employee pays less tax on the same total compensation. The result is that they fund a benefit in pre-tax pounds rather than post-tax ones.

Until recently, this logic applied to the car itself, but stopped there. Charging was treated like any other household bill, paid from whatever was left after HMRC had taken its cut. The Charge Scheme changes that. It's the UK's first salary sacrifice benefit dedicated entirely to EV charging, covering home, workplace, and public charging costs through one arrangement.

What Does EV Salary Sacrifice Charging Cover?

Through The Charge Scheme, employees can salary sacrifice all of their charging costs:

Home charging: Employees charge as normal and submit a monthly odometer reading, which takes around 10 seconds of admin. The scheme calculates and deducts the cost from gross salary automatically.
Workplace charging: Any charging at employer-installed charge points is captured within the scheme automatically.
Public charging: Access to 76,000+ charge points - including BP Pulse, Shell Recharge, and Pod Point - via a single RFID card. Sessions are billed through payroll, not the employee's bank account.

Employees pay no Benefit-in-Kind tax on employer-provided charging when structured correctly. The full savings are theirs to keep.

Why It Works as a Wellbeing Tool

What sets salary sacrifice charging apart from other financial wellbeing benefits is how quickly it delivers. The Charge Scheme RFID card arrives within 3-5 working days of enrolment. From the first payroll cycle after sign-up, the savings appear on every payslip without any further action from the employee.

For HR teams, that makes it easy to communicate. The savings are concrete, consistent, and visible from month one. It doesn't depend on the employee doing anything differently; it just reduces the cost of a bill they're already paying.

Key Takeaways

Salary sacrifice deducts charging costs from gross salary, before tax and NI are applied
The Charge Scheme covers home, workplace, and public charging through one arrangement
No Benefit-in-Kind tax applies to employer-provided charging when structured correctly
Savings appear in the payslip from the first payroll cycle, with no ongoing employee admin

Real-World Example: Monthly Savings for a Basic-Rate Driver

The following example uses a basic-rate taxpayer driving 10,000 miles a year, split evenly between home and public rapid charging. Public charging figures use Zapmap's May 2026 Price Index. Tax and NI figures use standard HMRC rates for 2025/26.

Assumptions

Variable	Value
Annual mileage	10,000 miles
EV efficiency	3.5 miles/kWh
Home charging (50%)	1,430 kWh at 24p/kWh
Public rapid charging (50%)	1,430 kWh at 79p/kWh
Total annual cost	£1,473
Monthly cost	~£123

What the Saving Looks Like

A basic-rate taxpayer saves approximately 28% through salary sacrifice (20% income tax and 8% National Insurance combined). A higher-rate taxpayer saves approximately 42% (40% tax and 2% NI).

	Basic rate (28%)	Higher rate (42%)
Monthly saving	£34	£52
Annual saving	£412	£619
Net annual cost	£1,061	£854

These savings apply every month, automatically, with no change to how or where the employee charges. For a higher-rate taxpayer who relies more heavily on public rapid charging, annual savings can exceed £700 on charging alone.

The Employer Side

Because salary sacrifice reduces gross pay, the employer's National Insurance contributions fall too. For a cohort of 50 EV drivers each sacrificing £1,473 per year, the employer NIC saving is 15% of the sacrificed amount - around £11,048 across the group annually.

The Charge Scheme is free for employers, funded through those NIC savings. For finance and payroll teams, that makes the business case simple to present.

Key takeaways

A basic-rate driver doing 10,000 miles saves approximately £412 per year on charging
Higher-rate taxpayers save approximately 42%, or around £619 annually, on the same usage
Savings are automatic and appear in the payslip from the first month of enrolment
Employers also save on NIC, making the scheme cost-neutral to implement and run

Building Salary Sacrifice Charging into a Wider Financial Wellbeing Programme

A well-structured financial wellbeing strategy typically works across three areas: income support, cost reduction, and financial resilience. Most programmes are strong on income support and resilience - pay reviews, pension contributions, EAP access, and financial coaching. Cost reduction is where most fall short.

Salary sacrifice charging fills that gap directly. It reduces a specific, recurring household bill for a defined and growing employee group. The savings per employee are calculable before the benefit is even launched. And it sits alongside other salary sacrifice arrangements, including the EV salary sacrifice scheme for the vehicle itself, without disrupting them.

Communicating It as a Cost-of-Living Response

The framing matters as much as the benefit itself. Salary sacrifice charging is a direct cost-of-living response because it cuts a bill that's grown substantially since 2022, and that most employer programmes don't address.

When communicating it internally, the key messages are simple:

The saving is immediate and confirmed - it appears in the payslip from month one
It covers all charging: home, workplace, and across 76,000+ public charge points in the UK
It's available to any employee with an EV, regardless of which car scheme they're on
Monthly admin is a single 10-second mileage submission

What HR Teams Need to Know Before Launching the Scheme

Setting up The Charge Scheme is straightforward. Key points for HR and reward teams:

Setup: Employers can be live within days, with no lengthy procurement or IT integration process
Payroll: The scheme uses existing payroll infrastructure and produces a single monthly file for processing
Eligibility: Available to any employee with an electric vehicle, whether through salary sacrifice, personal lease, or outright ownership
Reporting: Centralised usage and cost data support both internal reporting and Net Zero progress tracking
Cost: The scheme is funded through NIC savings. There is no net cost to the business

For employers already running an EV scheme, The Charge Scheme bolts on with the same payroll integration - no new vendor relationship, no disruption to existing arrangements.

Key takeaways

Salary sacrifice charging fills the cost-reduction gap in most financial wellbeing frameworks
It bolts onto existing EV or salary sacrifice arrangements with no setup disruption
It's a credible cost-of-living response because it reduces a real, recurring bill
Setup is fast, reporting is centralised, and there is no net employer cost

Frequently Asked Questions About EV Business Mileage Reimbursement

Yes. Salary sacrifice charging reduces a real, recurring household bill by 20-50% every month. Unlike financial education programmes or EAP access, it changes the actual cost an employee faces rather than helping them manage it.
For HR teams, it sits within the cost-reduction tier of a financial wellbeing strategy, alongside benefits like cycle to work that reduce specific household expenses through the payroll mechanism.
The saving depends on the employee's tax bracket and how much they charge. A basic-rate taxpayer saves approximately 28% on total charging costs - around £34 per month on a £123 monthly bill, or £412 per year. A higher-rate taxpayer saves approximately 42%, or around £52 per month, on the same usage.
Additional-rate taxpayers can save up to 50%. Savings are applied automatically through payroll and are visible from the first month of enrolment.
The business mileage reimbursement process is designed so that audit readiness is a by-product of normal operation, not a separate task.
The percentage saving is larger for higher-rate taxpayers, because salary sacrifice is more valuable at a higher marginal tax rate. That said, lower earners still receive a meaningful saving on a bill that often takes up a larger share of their disposable income.
For many lower earners, the practical financial impact is just as significant, even if the headline percentage is smaller.
Yes, and it's one of the most credible ways to do so.
Most cost-of-living benefits are informational - signposting, guidance, or one-off payments. Salary sacrifice charging delivers a confirmed, recurring saving every month on a bill that's grown substantially since 2022.
For HR teams building a financial wellbeing communication strategy, the message is concrete: this benefit reduces what employees pay to charge their car by up to 50%, starting from the first month.
From the first payroll cycle after enrolment. Once signed up, the employee's charging costs are deducted from gross salary in that month's payroll run. There's no waiting period, no claims process, and no reimbursement cycle.
The Charge Scheme card arrives within 3–5 working days, and the saving is visible on the payslip from month one.

Make Financial Wellbeing Tangible for Your EV Drivers

The financial wellbeing agenda is firmly established. Employees expect it, the data supports it, and HR teams are under real pressure to deliver something more substantive than access to a financial education portal.

For employers with EV drivers in their workforce, salary sacrifice charging is the most direct answer available. It reduces a specific, growing household bill by up to 50%, applies automatically through payroll, and costs the business nothing net of NIC savings. No other benefit in the standard toolkit delivers the same outcome with the same precision.

Whether your employees are relying on public charge points day to day, charging overnight at home, or a mix of both, The Charge Scheme covers all of it. One card, 76,000+ charge points, a saving that shows up in every payslip.

If you're building or refreshing a financial wellbeing strategy and want to add a benefit that genuinely reduces what employees pay, find out how The Charge Scheme works for HR and reward teams or see what it means for your employees directly.