How NFU Mutual introduced an impactful electric vehicle benefits scheme

Companies that invest in meaningful employee benefits are proven to drive higher levels of employee engagement, boosting loyalty, employer appeal, and building their reputation as a great place to work.

Insurance firm NFU Mutual prides itself on offering comprehensive benefits. From financial wellbeing initiatives and dental and private medical insurance to gym subsidies, restaurant discounts and season ticket loans, its benefits are carefully designed to meet the diverse needs of its people.

However, the team wanted to take a fresh look at its offering and identified an opportunity to meet a clear employee need while also advancing its sustainability ambitions - an Electric Vehicle Salary Sacrifice Scheme (EVSSS). Tusker was engaged to spearhead it.

Tusker already partners with NFU Mutual on its successful Company Car Driver Scheme which provides vehicles to employees who require a car for their role, or who are in senior management roles. The new EVSSS builds on the original foundation, expanding access to electric or hybrid cars to many other eligible employees.

Here, we look at how NFU Mutual successfully introduced its scheme, with practical tips and learnings for organisations considering a similar approach.

1. Work out what employees want (and need)

The number one rule when considering expanding your benefits offering is listening to your employees. Giving them a place to share ideas and exercise their ‘pester power’ is such an important tool for getting to the bottom of what will actually be most useful for them.

With cost-of-living pressures continuing, saving money where they can remains a high priority for employees – and HR teams generally are well-aware of the issues and are aiming to support people without the luxury of pay rises or extra budget. For many employees who need to commute, a car is a significant and unavoidable expense, so the opportunity to access a car for less and without the usual admin is a no-brainer.

EVSSS makes electric and low-emission vehicles more affordable by enabling employees to take advantage of tax and National Insurance savings, lowering monthly costs.

Offering EVSSS is beneficial for the company, too. Figures from Tusker’s EV Driver Survey shows that 60% of job seekers would be influenced to apply if it’s something a company offers, and 27% say it would make them stay longer with their employer.

It’s important to consider that there can be additional complications to navigate, so working with a specialist provider will quickly prove its value. For NFU Mutual, for example, fairness across the UK was a priority. We worked closely with the Tusker team to introduce four tailored portals for Northern Ireland and the mainland, managing the many complexities behind the scenes, yet delivering a clear, simple experience for employees.

It’s also important to remember that as salary sacrifice reduces gross pay, employers must ensure participation does not reduce earnings below HMRC’s National Minimum Wage.

2. Shape it to fit your company ambitions

In a world with heightening scrutiny of companies, there is more pressure to act responsibly to improve their sustainability and ESG credentials. Taking environmental action becomes a measure of value and credibility, and those that ignore it risk losing trust and competitiveness.

It’s important from an employee retention perspective. Tusker’s figures note that 52% of employees say they would stay longer at a company with strong ESG credentials, and 31% would even turn down a job offer if they weren’t comfortable with the organisation’s ESG stance.

NFU Mutual made it clear that sustainability is a top priority, and the environment matters deeply to the business and its employees. However, reducing emissions was a formidable challenge for a business with a large fleet of cars and a highly mobile workforce.

Offering EVSSS supports the firm’s environmental strategy by reducing commuting emissions through making EVs and hybrid vehicles more available to employees. One of the reasons Tusker was chosen by NFU Mutual was because it offers a tailored EVSSS that helps cut emissions while giving employees a smooth, easy experience from start to finish.

3. Make sure your employees get the memo

There’s no point developing an incredible EVSSS offer if no one ever knows about it. Navigating clear communication and stakeholder engagement during the planning of NFU Mutual’s implementation of the EVSSS was central to its success.

The launch was set to take place ahead of the Autumn Budget 2025. There were rumours of new government initiatives around Benefit-in-Kind (BIK) and Vehicle Excise Duty (VED), which could have impacted salary sacrifice benefits.

Against this ambiguous backdrop, careful and comprehensive messaging was paramount. The NFU Mutual team launched a dedicated intranet hub with simple scheme guidance, contact details and comprehensive FAQs. They stirred up excitement for the scheme with pre-launch and launch-day intranet announcements, and post launch, two live webinars attracted around 200 participants, with sessions made available on-demand to maintain momentum.

They also ran an exciting launch event that took over its Head Office car park – a first for them – which gave employees the chance to view 18 car models and learn more about the benefit.

A final tip? Record the results. For NFU Mutual, the planning and preparation delivered strong results, clearly validating the decision to introduce the scheme. Before 9am on the September 2025 launch day, employees had ordered three vehicles through the Employee Car Scheme, and 168 employees visited the portal.

All NI savings are passed back to their employees to make the scheme more affordable and inclusive, already saving £80,845 so far.

The scheme is also demonstrably hitting NFUM’s ESG targets, with driver emissions reducing 60% since launch and 144 tonnes of carbon already offset so far through the company car scheme – the equivalent of planting 65 trees.

For companies with large fleets and mobile teams, an EV salary sacrifice scheme is a simple way to cut emissions while keeping employees happy — good for the business, good for people, and good for the planet.