Board Report - Electric Vehicle Salary Sacrifice Scheme for Employees
Renfrewshire Council · 11 June 2026
Back to Finance, Resources and Customer Services Policy Board — 11 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
PUBLIC ___________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 11 June 2026 ___________________________________________________________________ Report by: Director of Environment, Housing and Infrastructure ___________________________________________________________________ Heading: Electric Vehicle Salary Sacrifice Scheme for Employees ___________________________________________________________________ 1. Summary 1.1 This report sets out the proposal for introducing an electric vehicle salary sacrifice scheme for employees. The scheme would allow employees to lease a fully insured and maintained electric vehicle (EV) usually at a price which is below the retail market price. 1.2 As well as supporting the Council’s ambitious net zero commitments the scheme would align well with the Council’s People Strategy and would help to attract and retain staff. The scheme would provide financial savings to both the Council via reduced National Insurance and pension contributions and the employee through this discounted scheme. 1.3 An outline business case (OBC) has been developed as part of a working group with leads from Finance, Procurement, HR, PMU and EH&I. This OBC has considered the case for change, potential benefits to both the employee and employer, eligibility criteria and risk that should be considered. ___________________________________________________________________ 2. Recommendations It is recommended that the Board: 2.1 Approves the report which would allow officers to undertake a procurement exercise, and
Page 2
PUBLIC 2.2 Notes that a report to award a contract in relation to this scheme would be brought back to this Board for approval. _________________________________________________________ 3. Background 3.1 In August 2022, Renfrewshire’s Plan for Net Zero (Ren Zero) was published in response to a Climate Emergency being declared in Renfrewshire in 2019. Renfrewshire’s Plan for Net Zero sets out the strategic framework required to work towards our ambitious climate change targets in Renfrewshire. There is a commitment to reduce our own operational emissions and Renfrewshire’s area wide emissions. 3.2 One of the five main themes within the Plan for Net Zero is Sustainable Transport and there is a commitment to maximise sustainable transport opportunities to deliver an inclusive, affordable transport system that provides choices for all. In terms of reducing Renfrewshire’s area wide carbon emissions, the Council can lead by example by encouraging employees to travel more sustainably. A recent staff survey has indicated that approximately 80% of Council employees live in Renfrewshire. 3.4 As part of the Sustainable Travel workstream a staff survey was carried out in March 2025 with the aim of gaining a better understanding of how staff travelled to work. Over 2,000 employees completed the survey which is approximately 25% of the organisation. 3.5 Employees were asked which travel incentives they would like the Council to offer and 53% selected an EV loan or lease scheme. Staff were also asked what measures would encourage them to consider a hybrid or EV vehicles with 28% selecting access to an EV scheme. 34% of employees who participated also said they are already considering an EV or hybrid vehicle. 3.6 An electric vehicle Salary Sacrifice Scheme for employees would allow employees to lease a brand new electric vehicle which is fully maintained and insured through flexible benefits and at a lower cost that they would get at market value. As well as supporting the Council’s Net Zero ambitions, it would also deliver financial savings to the Council through a reduction in National Insurance and pension contributions. _________________________________________________________
Page 3
PUBLIC 4. Eligibility 4.1 In order to qualify for the scheme employees would have to earn above National Minimum Wage after deductions are made and have a contract of employment which is greater than the term of the lease agreement. The table below outlines the number of employees who would be eligible and those who would not. 4.2 Permanent employees who would not be eligible are due to varying circumstances such as part time hours or they already have deductions from other salary sacrifice agreements such as buying additional annual leave. 4.3 As per HMRC Salary Sacrifice Guidelines, a salary sacrifice arrangement must not reduce an employee’s cash earnings below National Minimum Wage. Eligible employee Total Permanent Staff 5245 (61% of employees) Ineligible employees Total Permanent staff who do not meet the minimum wage criteria 2755 Temporary/ fixed term staff 596 Total ineligible employees 3351 _________________________________________________________ 5.0 Financial Savings 5.1 The scheme can provide financial savings to the employee as the car is provided to the employee as a non-cash benefit in exchange for reducing their gross salary, however there is a benefit in kind tax which the employee has to pay. The tables below outline the savings for employees on both standard and higher tax rates for a medium sized car.
Page 4
PUBLIC 5.2 In addition to financial benefit for the employee there are also financial savings for the Council in that there would be a reduction in National Insurance and pension contributions. The tables below outline potential savings based on a small and medium sized vehicle. 5.3 From benchmarking with other local authorities who have similar schemes in place it is likely that additional resource will be required to manage the scheme. It is proposed that one FTE at Grade 06 will be required (subject to job evaluation). 5.4 The projected savings to the Council from the scheme are based on the uptake by employees, if for example 100 – 150 employees signed up for the scheme, the savings to the Council could be in the range of £200,000 - £300,000. .
Page 5
PUBLIC ________________________________________________________________ Implications of the Report 1. Financial – none at the current stage, any financial implications would be highlighted at the conclusion of the procurement process. 2. HR & Organisational Development - none 3. Community/Council Planning – none 4. Legal - none at the current stage but will be at the conclusion of procurement. 5. Property/Assets - none 6. Information Technology - none 7. Equality & Human Rights (a) The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health & Safety - none 9. Procurement – Officers will report the outcome back to a future Board meeting. 10. Risk – any future suppliers systems would have to align with current Council payroll and IT systems and the scheme would have to be adequately resourced. 11. Privacy Impact- N/A 12. Climate Risk - Following the stage 2 CCIA assessment, this project has an informed decision to proceed in terms of sustainability. 80% of Council employees live in the Renfrewshire area and this scheme would support more sustainable travel across Renfrewshire. 13. Children’s Rights- N/A 14. Cosla Policy Position- N/A _________________________________________________________ List of Background Papers None ___________________________________________________________________ Author: Gwyneth Heaney, Senior Manager, Climate and Public Protection Email: Gwyneth.heaney@renfrewshire.gov.uk