Salary Sacrifice Leasing: Driving Growth into 2026

Salary sacrifice car schemes have become one of the UK’s biggest mobility success stories, with the latest BVRLA data showing a 118% year-on-year increase in active leases. Industry leaders are urging continued support to sustain this rapid growth and ensure accessibility for all employees.

Once a niche employee perk, salary sacrifice has matured into a mainstream mobility solution, helping tens of thousands of drivers access new electric vehicles through predictable, all-inclusive monthly costs. The surge in uptake highlights how tax stability and strong employer engagement have built confidence in the model, even during a period of economic uncertainty.

Leasing companies note that the continued growth of salary sacrifice is being driven by more affordable electric vehicles entering the market. According to Cap HPI, the number of EVs priced under £37,000 has risen by more than 80% over the past year, widening accessibility for everyday drivers.

Crucially, the profile of participants is also changing. Increasing numbers of basic-rate taxpayers are joining schemes, attracted by transparent pricing, predictable running costs, and maintenance-inclusive packages. The BVRLA reports that 99.8% of salary sacrifice cars now include full servicing and breakdown cover, providing drivers with financial certainty and peace of mind.

Employers are also reaping the benefits, with schemes supporting staff retention, sustainability goals, and corporate net zero commitments. As the UK works toward its 2035 zero-emission vehicle targets, salary sacrifice has become a vital mechanism for mainstream EV adoption, particularly as private retail demand for new electric cars remains subdued.

Industry analysts agree that with continued support and inclusive scheme design, salary sacrifice is poised to deliver another decade of growth. The model has proven its resilience, inclusivity, and environmental impact, transforming the way employees access and afford electric vehicles.

The challenge for policymakers now is to ensure the framework remains accessible and value-led. If they do, salary sacrifice won’t just maintain its momentum, it will become a cornerstone of the UK’s green mobility revolution.