How to support drivers' financial resilience
Ask five different people what financial resilience means and there are likely to be five different definitions. To some, it’s about having a stable income and healthy savings. To others, it’s the ability to survive a financial deficit during lean times. Fundamentally, true resilience isn’t just about access to ready cash, it is built on budgeting and predictability.
At a time when employees are facing an ongoing cost-of-living crisis, rocketing fuel costs and increased mortgage rates, supporting financial resilience has never been more important.
Employers have a duty of care to support employee financial wellbeing. It’s long been recognised that financial stress can leak into work, affecting focus and performance.
Employers aren’t always in a position to offer pay rises, but by addressing one of the biggest household expenses – car ownership – through predictable and manageable monthly costs, it goes a long way in supporting employee financial resilience.
The true cost of car ownership
Car ownership is expensive. It potentially exposes employees to significant financial shocks. Next to buying a house or going on holiday, it’s usually one of the largest expenses that an employee will face.
Insurance volatility, the rising cost of repairs and fuel price hikes all play their part. In fact, keeping a car on the road has become just as cost prohibitive over the last few years as the initial purchase.
According to research by Asda Money, the average driver spends between 11-15% of their annual wage on running costs alone.
The RAC also warns of an aging fleet crisis. With the average car being around 10 years old, 59% of drivers are facing more frequent and more expensive repairs. Of those, 37% say they’ve struggled to meet repair costs.
Financial resilience tool
This is why an EV salary sacrifice scheme is such a powerful and valued benefit. It functions as a financial resilience tool by cushioning employees from these financial shocks.
Employees themselves recognise this. Tusker’s EV Driver Survey revealed that 38% of employees signed up for Tusker’s scheme purely because of the financial and tax benefits.
Under EV salary sacrifice arrangements, a portion of an employee’s gross salary is used to cover fixed, predictable and all-inclusive monthly payments which cover insurance, maintenance and repairs. In essence, the scheme works by making the unpredictable entirely predictable. From a financial resilience perspective, that’s crucial.
Widening access
Accessibility in EV salary sacrifice schemes has always been problematic. Because salary sacrifice must not take earnings below National Minimum Wage, it has historically excluded some lower rate taxpayers from entering the scheme – the very demographic most vulnerable to financial shocks.
To bridge the gap, progressive providers like Tusker have introduced a pre-loved EV range, which looks to re-purpose suitable used cars with a lower cost.
Take-up of this range has been enthusiastic. Research has found that used EVs account for 12% of new Tusker orders, and demand is growing.
The numbers
To understand the true value of EV salary sacrifice schemes as effective financial wellbeing tools, here is how the numbers stack up:
- Upfront cost
Private: A new car can cost between £19k (small car) and just over £28k (medium car), according to Nimblefins. Meanwhile, the average cost of a preloved vehicle sits in the £10k-20k price bracket.
Salary sacrifice: £0 upfront. Providers such as Tusker pass on manufacturer fleet discounts to the employee via fixed, all-inclusive monthly amount.
- Insurance
Private: Despite a recent downturn in insurance rates, postcode lotteries remain problematic. Average car insurance premiums range from £471 in the South West to £798 in London, according to Quotezone Car Insurance Price Index, Q1 2026.
Salary sacrifice: Fixed and protected. Employees are fully protected from car insurance volatility under salary sacrifice arrangements, regardless of market conditions. And as the premium is included within the Salary sacrifice itself, employees can also make additional tax efficiencies on the cost.
- Fuel and power
Private: The market has seen significant hikes in fuel costs in the early phase of 2026. Currently, average costs stand at 156p per litre for unleaded and 177p per litre for diesel. Nimblefin estimates that internal combustion engine (ICE) owners will spend over £1,000 this year on fuel.
Salary sacrifice: Switching to an EV through a workplace salary sacrifice scheme from a privately owned ICE vehicle can create significant savings. Latest analysis from climate science publication Carbon Brief shows that EV drivers are saving £1,100 a year in fuel costs.
- Servicing & MOT
Private: The average cost for MOT and service (combined) ranges from £260 to £450.
Salary sacrifice: MOT and service costs are included in the fixed monthly amount.
- Tyres
The average cost for a mid-range tyre on a mid-range car (think VW Golf and Ford Focus) ranges from £45 to £150 per tyre, with premium-range cars being considerably more up to £300 per tyre. With salary sacrifice: Tyres, fitting and wheel balancing are included in the fixed monthly amount.
- Repairs
Private: Car repairs are higher than they were a year ago. Warranty Solutions Group (WSG) data shows that an average repair cost in 2024 was £492.26 in comparison to £607.67 in 2025.
Salary sacrifice: The cost of repair is already factored into the fixed monthly amount.
The savings
In real terms, this means that employees utilising EV salary sacrifice schemes can save hundreds per month in running costs, maintenance, insurance, as well as tax and NI.
For a typical £40,000 EV, a basic rate taxpayer saves roughly £150 per month, while a higher rate taxpayer saves around £200 per month through tax and NI efficiencies.
The fixed, all-inclusive monthly amount shields employees from insurance volatility, rising repair costs and fuel hikes. And because the EV isn’t owned outright, depreciation value ceases to be an issue.
For employers looking to support financial resilience, EV salary sacrifice schemes are highly tax efficient and financially manageable. They transform an otherwise costly household expense into something accessible and affordable, providing security and peace of mind for employees.
Supplied by REBA Associate Member, Tusker
Tusker is the UK’s leader in salary sacrifice cars. Part of Lloyds Banking Group, it has more than 15 years’ experience in offering an affordable way for employees to drive a new, fully insured, and maintained car. Its scheme, which is available to over 1.8 million UK employees, offers a range of options, from pure electric cars to hybrids and even traditional petrol and diesel vehicles. It provides a tailored scheme for organisations’ individual needs.
