The Electric Car Scheme has launched plug-in hybrid electric vehicles (PHEVs) as part of its salary sacrifice scheme, responding to overwhelming demand from employers seeking to expand their net zero programmes through their employee benefit offering.
The move follows market testing showing 89% of businesses want hybrid options added to the salary sacrifice scheme to support their employees not yet ready for fully electric driving. Early uptake during a trial has exceeded expectations.
More than 65 plug-in hybrid models from 12 manufacturers are now available through the scheme, including the Volkswagen Golf from £426 per month and MG HS from £387 per month, plus Mercedes-Benz GLA, Land Rover Discovery Sport and Volvo XC60.
All eligible vehicles emit 74g/km CO₂ or below, which is significantly lower than a new traditional combustion engine car with an average emission of 106.8g/KM CO2.
The scheme mirrors the company’s established EV salary sacrifice programme with identical administration and ease of use for HR and payroll teams. Participating employees can save up to 30% on a plug-in hybrid.
For employers, the programme remains entirely risk-free with no cost implications if employees leave. The same payroll processes, compliance reporting and annual Scope 3 emissions impact data applies across both hybrid and fully electric vehicles, meaning hybrids can also contribute positively to a company’s ESG goals.
Thom Groot, co-founder and CEO of The Electric Car Scheme, said, “Salary sacrifice has proved hugely successful for pure electric vehicles since 2020 and it still remains the most tax efficient option, but we’re now extending the same offer to plug-in hybrids so more employees can access the benefit.
“HR and employee benefits teams are telling us hybrids work for employees with longer commutes or limited charging access. It’s a benefit people want and use – and it creates staff loyalty. Employees get the same substantial savings through salary sacrifice, whether they choose hybrid or fully electric.”
The Electric Car Scheme works with a range of employers, such as Holland & Barrett, JustEat and Dreams.
