Thats an interesting set of points you make however surely Motability only exists because of Government funding? Ie if there were no payments there would be no need for Motability? Salary sacrifice schemes are offered to employees as part of their employment offer and are delivered from company profits. I do not think one can be compared to another, they exist for different reasons.I don’t want to get overly financial as I’ve a tendency to go full accountant without realising. Motability was put together by banks, there should always be funding to support those who incur extra expenses and inconvenience in getting around due to disability. I hate to break it to you but a salary sacrifice scheme has nothing to do with the finances of the company. It’s a benefit offered by finance companies making use of the company’s ability to retain people. A finance company won’t look favourably at a company with a high staff turnover. Yes the employee perceives a benefit from employment and might look at the offer as an advantage over another job that doesn’t offer it, although the number of suitably sized companies not offering it are diminishing. It’s not something the company has any financial input other than the staff time administering the scheme and dealing with the payroll implications. A large company offering salary sacrifice schemes for, say, cars, bicycles and tech, could have a dedicated member of the payroll team working the scheme, that’s all the company pays for.
Sorry you are not correct on Salary Sacrifice schemes
Salary sacrifice schemes exist to maintain/attract staff to companies to make the companies profitable. The company chooses whether they want to offer it. The company I work for has a large team delivering salary sacrifice. It is purely an employee/employer benefit. It is absolutely a companies choice whether they offer it or not.
Google Gemini explains it better than I
Here is the value of the scheme from the employer’s perspective:
1. Significant National Insurance (NI) Savings
This is the primary financial benefit. Employers pay Class 1 National Insurance Contributions on the salaries they pay to staff.
The Logic: When an employee “sacrifices” £500 of their gross salary, the employer no longer has to pay NI on that £500.
The Math: With employer NI rates set at 15.0% (from April 2025), a company can save roughly £900 per year for every employee sacrificing £500 a month.
Reinvestment: Many companies use these savings to offset the cost of administering the scheme, making it entirely free to run.
2. Boosts Recruitment and Retention
In a competitive job market, high-value benefits are a differentiator.
Retention: Because the lease is tied to the employment contract, employees are statistically more likely to stay with the company for the duration of the 3- or 4-year term.
Recruitment: Offering a “company car” benefit to the entire workforce—not just senior management—makes your job offers much more attractive to candidates.
Modern Perk: Research suggests that Gen Z and Millennial workers specifically value sustainable, forward-thinking benefits like EV schemes over traditional corporate perks.
3. Strengthening ESG and Net Zero Goals
Many companies now have strict Environmental, Social, and Governance (ESG) targets.
Scope 3 Emissions: Employee commuting is often a huge part of a company’s carbon footprint. By moving staff from older petrol/diesel cars into EVs, the business can report a measurable reduction in its “Scope 3” emissions.
Corporate Image: It signals to clients, investors, and the public that the company is serious about sustainability.
4. Reduced Risk and Admin (with the right provider)
Modern salary sacrifice providers (like Octopus EV, Zenith, or Tusker) handle the “heavy lifting,” which includes:
All-inclusive Management: They manage the insurance, maintenance, and breakdown cover, so the HR team doesn’t have to.
Lifestyle Protections: Providers often include “protection” for the employer if an employee leaves, goes on maternity leave, or is made redundant, so the company isn’t left paying for an empty car.
Grey Fleet Risk: It reduces the “Grey Fleet” risk—the legal liability an employer has when staff drive their own (potentially unmaintained or uninsured) personal cars for business trips.