The Electric Car Scheme has introduced plug-in hybrid electric vehicles as part of its salary sacrifice scheme, enabling participating employees to up to 30% on PHEVs.

The move follows overwhelming demand from employers seeking to expand their net zero programmes through their employee benefit offering.

Market testing by The Electric Car Scheme found 89% of businesses want hybrid options added to its salary sacrifice programme to support their employees not yet ready for fully electric driving.

And a trial found early uptake exceeded expectations.

More than 65 plug-in hybrid models from 12 manufacturers are now available through the scheme, including the Volkswagen Golf from £426 per month and MG HS from £387 per month, plus the Mercedes-Benz GLA, Land Rover Discovery Sport and Volvo XC60.

All eligible vehicles emit 74g/km CO2 or below; significantly lower than a new traditional combustion engine car with an average emission of 106.8g/km.

The scheme mirrors the company’s established EV salary sacrifice programme – already adopted by employers such as Holland & Barrett, JustEat and Dreams – with identical streamlined administration and ease of use for HR and payroll teams.

For employers, the programme remains entirely risk-free with no cost implications if employees leave. The same payroll processes, compliance reporting and annual Scope 3 emissions impact data applies across both hybrid and fully electric vehicles, meaning hybrids can also contribute positively to a company’s ESG goals.

Thom Groot, co-founder and CEO of The Electric Car Scheme, said: “Salary sacrifice has proved hugely successful for pure electric vehicles since 2020 and it still remains the most tax efficient option, but we’re now extending the same offer to plug-in hybrids so more employees can access the benefit.

“HR and employee benefits teams are telling us hybrids work for employees with longer commutes or limited charging access. It’s a benefit people want and use – and it creates staff loyalty. Employees get the same substantial savings through salary sacrifice, whether they choose hybrid or fully electric.”