NFU Mutual introduces impactful EV benefits scheme with Tusker
Insurance firm NFU Mutual wanted to take a fresh look at its benefits offering and identified an opportunity to meet a clear employee need while also advancing its sustainability ambitions - an electric vehicle salary sacrifice scheme (EVSSS). Tusker was engaged to spearhead it.
Tusker already partners with NFU Mutual on its successful company car driver scheme which provides vehicles to employees who require a car for their role, or who are in senior management roles. The new EVSSS builds on the original foundation, expanding access to electric or hybrid cars to many other eligible employees.
Here’s how NFU Mutual introduced its scheme, with practical tips and learnings for organisations considering a similar approach.
1. Work out what employees want (and need)
The number one rule when considering expanding your benefits offering is listening to your employees.
With cost-of-living pressures continuing, saving money where they can remains a high priority for employees – and HR teams generally are well-aware of the issues and are aiming to support people without the luxury of pay rises or extra budget. For many employees who need to commute, a car is a significant and unavoidable expense.
EVSSS makes electric and low-emission vehicles more affordable by enabling employees to take advantage of tax and National Insurance savings, lowering monthly costs.
Offering EVSSS is beneficial for the company, too. Figures from Tusker’s EV Driver Survey shows that 60% of job seekers would be influenced to apply if it’s something a company offers, and 27% say it would make them stay longer with their employer.
It’s also important to remember that as salary sacrifice reduces gross pay, employers must ensure participation does not reduce earnings below HMRC’s National Minimum Wage.
2. Shape it to fit your company ambitions
In a world with heightening scrutiny of companies, there is more pressure to act responsibly to improve their sustainability and ESG credentials.
It’s important from an employee retention perspective. Tusker’s figures note that 52% of employees say they would stay longer at a company with strong ESG credentials, and 31% would even turn down a job offer if they weren’t comfortable with the organisation’s ESG stance.
Reducing emissions, however, was a formidable challenge for a business with a large fleet of cars and a highly mobile workforce.
Offering EVSSS supports the firm’s environmental strategy by reducing commuting emissions through making EVs and hybrid vehicles more available to employees. Tusker offers a tailored EVSSS that helps cut emissions while giving employees a smooth, easy experience from start to finish.
3. Make sure your employees get the memo
Navigating clear communication and stakeholder engagement during the planning of NFU Mutual’s implementation of the EVSSS was central to its success.
The launch was set to take place ahead of the Autumn Budget 2025. There were rumours of new government initiatives around benefit-in-kind and vehicle excise duty, which could have impacted salary sacrifice benefits.
Against this backdrop, careful and comprehensive messaging was paramount. The NFU Mutual team launched a dedicated intranet hub with simple scheme guidance, contact details and comprehensive FAQs. It then followed up with two live webinars with sessions made available on-demand.
Record the results
For NFU Mutual, the planning and preparation delivered strong results, clearly validating the decision to introduce the scheme. All NI savings are passed back to their employees to make the scheme more affordable and inclusive, already saving £80,845 so far.
The scheme is also demonstrably hitting NFUM’s ESG targets, with driver emissions reducing 60% since launch and 144 tonnes of carbon already offset so far through the company car scheme – the equivalent of planting 65 trees.
For companies with large fleets and mobile teams, an EV salary sacrifice scheme is a simple way to cut emissions while keeping employees happy.
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.
