What are off-the-shelf voluntary benefits packages?
Voluntary benefits are optional perks and benefits that employers can offer employees. Such benefits are self-funded, meaning employees pay for them, sometimes via payroll deduction, but usually come at a discount thanks to employers leveraging group rates. The packages most commonly include discount vouchers and deals for use across shops, restaurants and other leisure activities, but are becoming more diversified. Some tiers of packaging can now also include broader benefits like dental insurance, bikes-for-work schemes, gym memberships, and skills training and professional development.
Voluntary benefits are an adaptable element of a total reward strategy that offer employees meaningful choice while helping employers control cost. As such, they are increasingly popular. According to Ben, it is not uncommon for organisations to offer in excess of 30 voluntary benefits to their employees.
Unlike bespoke voluntary benefits packages, an off-the-shelf voluntary benefits package offers employees a pre-packaged, ready-made scheme, offering a range of discounts and deals. Employers can brand the scheme with their logo, but aside from that off-the-shelf packages tend to be generic.
Such packages can be particularly appealing to smaller employers, given they can cut costs and save valuable administrative time. The platforms are usually quicker to implement compared to a bespoke option and easy to administrate, often via a single, self-service online portal, accessible via desktop or mobile app. Aon’s UK Benefits and trends survey, published in September 2025, shows that 50% of UK organisations now use an online benefits platform.
What are the cost implications?
Off-the-shelf packages offer significant cost advantages over bespoke builds. Employers typically pay a platform fee rather than absorbing development and administration costs
Many voluntary benefits are cost-neutral to the employer because employees fund their own perks, sometimes enhanced via salary sacrifice arrangements.
The cost of setting up a scheme will vary between providers, with packages usually dependent on the number of employees. Most providers use a per-employee, per-month pricing model.
The schemes can also help offset cost: salary sacrifice arrangements can reduce national insurance contributions. A good benefits package also helps increase retention and employee engagement, and takes the pressure off pay reviews. With the on-going high cost of living, benefits such as discounts can help employees who are feeling the squeeze of day-to-day living expenses.
The issue for employers is not just cost, but engagement in the package. If people do not use it, value drops. That means factoring in the communications and engagement required to drive value from any investment is as key as considering the upfront cost.
Are there any tax or legal issues?
The lifestyle savings and shopping discounts that often make up the bulk of off-the-shelf benefits packages do not come with any tax implications. But any benefits offered via salary sacrifice, which drive most savings on the employer side, must be properly set up. Employees cannot sacrifice below national minimum wage and schemes must be aligned with HM Revenue and Customs (HMRC) guidance. Employers should also be preparing for the upcoming move to mandatory payrolling of benefits for any benefits-in-kind (BIK), if included as part of the package; where an employee pays the full premium via post-tax payroll deduction, no BIK arises.
GDPR compliance is relevant wherever employee data is processed through a third-party platform.
What are the current market trends or developments?
There is a trend around consolidation, with employers moving away from managing separate tools for benefits, wellbeing and recognition, instead seeking a single platform. This simplifies user-experience for employees too. Employers are increasingly using benefits platforms as an engagement and retention tool, with integration with recognition schemes a growing expectation.
Cost-of-living pressures continue to shape what people value, with savings on shopping and lifestyle increasingly expected by employees. Electric vehicles and bikes-for-work schemes are also becoming more popular, as employees look for predictable alternatives to rising fuel prices.
Health benefits are expanding as pressure on the NHS and GP services drives employees to demand more health-related benefits. Including these in a voluntary package can take cost pressure off the employer.
Artificial intelligence (AI)-driven tools can track engagement and usage, optimising cost management and providing a level of personalisation.
The provider landscape is also consolidating, with deal activity reshaping the sector.
Who are the main providers and what types of schemes do they offer?
The main providers of off-the-shelf benefits schemes include Avantus, Perkbox, Pluxee, Reward Gateway | Edenred and Zest.
Reward Gateway | Edenred’s platform consolidates multiple benefits into a single hub, reducing the administrative overhead of managing separate supplier relationships. Perkbox Flexi Points is a monthly allowance of points provided by employers, allowing employees to select their own rewards from a curated catalogue, and double as a recognition tool. Love2Shop is commonly embedded within other platforms as the voucher and gift card engine.
