Case study: How Virgin Media O2 launched a unified EV salary sacrifice scheme

Electric Vehicle (EV) salary sacrifice schemes are becoming an increasingly popular employee benefit, due to the financial and environmental advantages they offer both employees and employers. Following the 2021 joint venture forming Virgin Media 02, updating the EV salary sacrifice scheme became a priority. Reappointed through a competitive retender, Ayvens was tasked with creating a unified scheme that supported the integration of Virgin Media O2’s workforce and navigate the unique challenges of the combined organisation.

Beyond financial benefits, the scheme helps reduce the employer’s National Insurance liabilities and decreases reliance on the grey fleet. It also strengthens employee engagement by making employees feel valued and safer, thereby enhancing Virgin O2’s employer reputation.

Emily Tunnard, part of the Strategic Accounts Team at Ayvens, said: “To address the challenge, we worked to introduce entry-level electric vehicles as part of the scheme which offer exceptional value and made sure to fix motor insurance cost for the contract terms. Beyond that, we made sure to launch the proposition in such a way that all the potential advantages of the scheme, were clearly highlighted to the employees.” This series of benefits all culminate to what can be a considerable saving, with Emily noting: “Depending on vehicle choice and an employer’s tax rate, we’ve seen savings of as much as £5,000 a year compared with retail leasing.”

Salary sacrifice schemes offer employers a number of valuable benefits, including perks for employees and reducing the complexities of cash allowances.