MANAGEMENT > SALARY SACRIFICE
WHY SALARY SACRIFICE IS 2026’s CRITICAL SUCCESS FACTOR
Lash Saranna, CEO of EV salary sacrifice and business subscription firm Ezoo, explains why improving access to EVs holds the key to further industry growth and a successful ZEV roadmap.
“Salary sacrifice schemes can be an effective way to increase the uptake of EVs.”
Record-breaking EV registrations, accelerating public charging infrastructure and rapidly developing technology. Progress in 2025 makes for positive reading when it comes to the UK’s transition to electrification. But are we on track to meet the tightening zero-emission vehicle (ZEV) targets?
The legislation, introduced in January 2024 and reviewed in August last year, mandates vehicle manufacturers to ensure that a strict percentage of the models that roll off the production line are zero emission. In 2026, this target is rising to 33% for new cars (up from 28% in 2025) and to 24% for new vans (up from 16% in 2025). By the end of 2030, 80% of new cars and 70% of new vans must meet zero-emission standards.
But while positive, the industry is questioning whether these targets are ultimately achievable. Concerningly, research commissioned by motor finance provider Startline suggests that 44% of UK car dealers fear they aren’t.
To influence the percentage of zero-emission vehicles being manufactured, we need to increase driver demand for EVs. This requires consumers to see the sustainability, cost and practicality benefits far more clearly. Diversifying routes to market will be critical to achieve this, which is where alternatives such as salary sacrifice and business subscriptions can play a pivotal role.
A sacrifice worth making
Salary sacrifice schemes can be an effective way to increase the uptake of EVs. The approach sees employees agree to give up a small portion of their gross salary in exchange for an all-inclusive vehicle package.
This can be a win-win for employees and employers, with employees paying up to 60% less to get behind the wheel of their dream EV. For employers, it is a net-zero cost scheme, with all implementation taken care of by the provider.
As a result, salary sacrifice schemes are already proving incredibly popular, with a fleet of almost 210,000 vehicles and a staggering 123% year-on-year growth, according to the BVRLA. Ezoo’s data corroborates this trend, with soaring demand for its salary sacrifice services, which is only expected to continue in 2026.
Shorter-term routes to electrification
But salary sacrifice isn’t the only cost effective way of getting behind the wheel of an EV. Business subscriptions provide quick access to the latest models on a shorter, more flexible term – much like a streaming service. Like salary sacrifice, this model is proving increasingly popular amongst UK drivers, registering 7% year-on-year growth according to the BVRLA.
One of the advantages of business subscriptions is that, like salary sacrifice, they often come in an all-inclusive package covering insurance, car tax, servicing and 24/7 breakdown cover. With delivery within seven days and terms as short as three months, these schemes can be a low-risk way to embrace electrification. Perhaps unsurprisingly, at Ezoo we’re seeing demand for business subscriptions rocket, with customers keen to harness the flexibility of our services.
The key to a successful ZEV roadmap
The UK is continuing to make excellent progress in the transition to electrification. Plug-in cars remain by far the most cost-effective and sustainable transport solution, with demand increasing accordingly. Salary sacrifice and business subscription solutions make switching from ICE to zero-emission alternatives more attainable than ever. These routes to market will continue to be instrumental in giving UK car makers the boost they need to comply with the current ZEV targets.
Feature continues...
