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Driving Change: Why Education on Salary Sacrifice is Key to EV Transition

Posted on 3 Jun 2025

Richard Jessop, Director of Sales for Salary Sacrifice & Corporate Partner at Ogilvie Fleet

3 min read

Richard Jessop, Ogilvie Fleet’s Director of Sales – Salary Sacrifice & Corporate Partners, recently wrote in EV Fleet World Digital about what the industry needs to do to improve education on salary sacrifice. Read the article below:

As businesses across the UK look to decarbonise, the shift to electric vehicles is accelerating – but making that transition cost-effective and accessible for employees is just as crucial. One of the most powerful fleet tools in the arsenal of almost any organisation is salary sacrifice. Yet, despite its potential, many businesses and drivers still don’t fully understand how it works or the benefits it brings. Education is the missing link.

Salary sacrifice providers like Ogilvie see first hand how schemes can make EVs financially viable for a much broader range of employees. Thanks to low Benefit-in-Kind tax rates on EVs, drivers can access new electric cars at a significantly reduced cost compared to traditional funding methods. For employers, it’s a win-win: enhanced employee benefits, progress on ESG goals, and no additional cost to the business.

Education

But confusion still lingers. Many employees hear “sacrifice” and assume a loss. Others worry about early termination charges or overestimate the impact on take-home pay. Employers, too, often hesitate due to misconceptions around compliance, administration, or the belief that it’s only suitable for large corporates.

Even without the more obvious benefits, our clients have found both recruitment and retention improve after launching a scheme as employees continue to look at the broader package and not just renumeration.

Salary sacrifice education with a VW Buzz - one of the most popular salary sacrifice EVs

This is where education must step in – not as a one-time presentation, but as an ongoing process of clear communication, transparency, and support. At Ogilvie, we work closely with clients and their employees to demystify salary sacrifice and it is the role of businesses like ours and the wider fleet industry to continue this education.

Transition strategy

Uptake is rising fast among organisations that embed education into their EV transition strategy and it is very often the first steps into electrification, before even company car schemes for some. Employees feel empowered to make greener choices, and businesses take a meaningful step toward sustainability targets without bearing the full financial burden.

As we move toward the government’s 2030 phase-out of new petrol and diesel cars, solutions like salary sacrifice aren’t just nice-to-have – they’re essential. But without education, uptake will lag behind potential.

Our message to fleet managers is simple: don’t let misunderstanding stand in the way of progress. Invest in education, communicate clearly, and help your drivers see the real value of going electric. The future of fleets is electric – and salary sacrifice can help drive us there.

Find out more about Ogilvie’s award-winning salary sacrifice scheme.

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Ogilvie Fleet Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 308787, as a provider of fleet management, vehicle finance and leasing products to both commercial and personal customers. Should we provide a regulated product, it may be provided directly or, potentially, distributed through a panel of authorised brokers and/or introducers. If that is the case, we may pay a commission to said authorised brokers or introducers who pass new customers to us. This commission is usually a fixed fee, is not paid by the personal customer, and does not impact the amount the personal customer will pay.

Ogilvie Fleet Limited is a registered company in Scotland with company number SC067027, registered office Ogilvie House, 200 Glasgow Road, Stirling, FK7 8ES. VAT registration number 400 892 864.

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Ogilvie Fleet Limited is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 308787, as a provider of fleet management, vehicle finance and leasing products to both commercial and personal customers. Should we provide a regulated product, it may be provided directly or, potentially, distributed through a panel of authorised brokers and/or introducers. If that is the case, we may pay a commission to said authorised brokers or introducers who pass new customers to us. This commission is usually a fixed fee, is not paid by the personal customer, and does not impact the amount the personal customer will pay.

Ogilvie Fleet Limited is a registered company in Scotland with company number SC067027, registered office Ogilvie House, 200 Glasgow Road, Stirling, FK7 8ES. VAT registration number 400 892 864.