Octopus Electric Vehicles helps HSBC UK unlock salary sacrifice for business customers

• HSBC UK to recommend Octopus Electric Vehicles as preferred salary sacrifice provider to all UK corporate customers
• Builds on existing strategic partnership between the two companies
• Each EV cuts business emissions by an estimated 2.5 tonnes of CO2 each year - while saving employees up to 40% on car costs1

London, 15th September 2024 - Octopus Electric Vehicles, the UK’s leading EV-only leasing company, is now the recommended salary sacrifice provider for HSBC UK’s business clients, further strengthening the relationship between the two popular household brands.

Octopus’ salary sacrifice package empowers businesses to offer staff a seamless transition to electric vehicles (EVs) - benefiting both their balance sheets and environmental impact.

Like cycle-to-work but for cars, Octopus’ salary sacrifice allows drivers to save up to 40% every month on a brand-new electric car*. The package is an easy all-in-one service – providing the car, charger and a discounted energy tariff.

In just three years, Octopus has helped over 5,500 companies launch electric car employee benefit schemes, with clients including PepsiCo, WPP and Luceco.

For every employee who switches from a petrol or diesel car to an EV, HSBC UK’s business clients can cut their carbon emissions by up to 2.5 tonnes a year**.

The scheme also helps companies attract and retain top talent. Research from Octopus shows that 75% of employees place financial savings as their top priority in employee benefit***.

Salary sacrifice is one of the most lucrative benefits available to staff - saving them up to 40% on their monthly driving costs. While charging on Octopus’ smart EV tariff, Intelligent Octopus Go, can save drivers £750 a year compared to fossil fuel costs****.

The announcement builds on the existing partnership between the two brands formed in 2022, when HSBC UK provided funding to Octopus to expand its electric car fleet.

The move marks the next step in a broader, long-term strategic alliance that has seen HSBC UK add to its suite of sustainable products, while Octopus continues to support more people to make the switch to green driving.

Fiona Howarth, CEO at Octopus Electric Vehicles, commented: “Salary sacrifice is by far the cheapest way to pick up a new EV, however the benefits are not exclusively for drivers, but for their employers too. Companies are able to cut their emissions, help retain staff by offering a brilliant perk, and save money. By partnering with HSBC UK, we hope to make businesses of all sizes aware of one of the most attractive business perks around right now.”

Robert King, UK Head of Commercial Banking Sustainability at HSBC UK, said: “Supporting the transition to net zero is a vital part of our UK strategy. The Octopus EV salary sacrifice scheme is a great example of how we work with our partners to deliver innovative solutions to our customers, in this case offering a more sustainable travel alternative for our clients employees at a reduced cost.”

Almost all (96%) EV drivers are happy with their vehicles and say it is likely their next car will also be electric, research commissioned by Octopus Electric Vehicles from Opinion Matters shows*****.

Market share of pure electric EVs is nearing 20%****** - with over one million on UK roads. By 2028 industry experts predict that figure will increase by 500,000 units every year*******. Britain’s strong EV growth has been helped by government incentives - notably salary sacrifice and low Benefit in Kind (BiK) taxation rates.

-Ends-

Notes to editors:

*Octopus Electric Vehicles - Is it better to join a salary sacrifice car scheme or take car allowance?

**Assuming 10,000 miles - average petrol emissions: 0.26473 CO2e/mile - average EV on zero emissions grid: 0.01035 kg CO2e/mile

***Survey of 2,000 people in the UK with a driving licence and in full time employment - conducted with YouGov, September 2022

****Based on 7,600 miles - 2023 UK average car mileage. Intelligent Octopus Go - EV Saver: off-peak rate 6p per kWh. Average EV efficiency: 0.301 kWh/mile. Average price of petrol (15/7/24): 134.17.6p/L. Average petrol car efficiency: 5.4L/100km. 

*****Research conducted by Opinion Matters (16/7/24-23/7/24) of 1,000 17+ UK EV drivers (400 having used an EV for 3 years or longer) and 2,000 17+ ICE vehicle drivers. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Opinion Matters is also a member of the British Polling Council.

****** New AutoMotive, June 2024

******* Statista - Electric Vehicles UK

Press Contact

Octopus Energy:

Sam Salehi

sam.salehi@octoenergy.com

0204 5308 369

Octopus Electric Vehicles:

Octopus Electric Vehicles, part of the Octopus Energy Group, was launched in 2018 to make it easy for drivers to make that switch to clean, electric transport. With over 85 electric cars now available from 28 different brands, Octopus Electric Vehicles’ team provides everything drivers need to take the road in a new EV.

Offering an all-in-one service, Octopus lease the cars, install charge points, provide specialist EV energy tariffs, and offer access to over 780,000 public charge points across Europe via Octopus Electroverse - all with a 5* rating on Trustpilot.

Octopus Electric Vehicles also specialises in salary sacrifice schemes - an employee benefit that makes driving a brand new electric car cheaper than the petrol or diesel equivalent through tax savings. Placing customer experience first, Octopus Electric Vehicles has designed the scheme to be simple for an employer to set up and run, and support them at every step. Drivers typically save between 30-40% every month on the cost of their EV; and at zero-cost for an employer to set up, it’s great for their team, their hiring and retention, and for their sustainability goals.

More information can be found at www.octopusev.com

HSBC UK:

HSBC UK serves over 14.7 million active customers across the UK, supported by 23,700 colleagues. HSBC UK offers a complete range of retail banking and wealth management to personal and private banking customers, as well as commercial banking for small to medium businesses and large corporates. HSBC UK is a ring fenced bank and wholly owned subsidiary of HSBC Holdings plc.

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 62 countries and territories. With assets of US$3,001bn at 31 March 2024, HSBC is one of the world’s largest banking and financial services organisations.