Five reasons electric vehicles are more affordable than you think

For years, one of the biggest myths about electric vehicles (EVs) has been that they’re “too expensive” or only for high earners. But that’s not the case. Salary sacrifice schemes, lower running costs, and better government support are making EVs cheaper than ever.

In fact, research shows EVs drivers save around £5,850 by making the switch to electric. And that rises to £7,785 for new EVs. 

Thousands of businesses are catching on to this, taking advantage of cheaper, more sustainable transport for their employees. 

Let’s break down how these savings work in practice. 

With a salary sacrifice scheme, employees give up part of their gross salary – before tax and National Insurance – in exchange for a brand-new EV. This saves them up to 40% compared with buying one outright.

To put that in perspective, drivers save around £2,194 over four years versus a petrol car on the same scheme. That goes up to £6,450 for a higher-rate taxpayer covering 10,000 miles a year.

And unlike personal contract hire (PCH) or ownership, there’s no upfront cost.

Maintenance

Servicing, maintenance and repairs to keep your car in top condition.

Breakdown cover

At home or on the road breakdown assistance included.

Insurance

Comprehensive insurance included as standard. Eligibility criteria and exclusions apply.

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Once you’ve got the car, charging is where the real savings kick in. 

Driving a petrol car costs around 18p per mile. Charging an EV, on the other hand, can cost as little as 3p per mile at home, around 14p per mile using lamppost chargers, and about 18p per mile with rapid public charging.

If you’ve got a charger at home, you’ll save money every day, without even giving it a second thought. That’s because you’ll have access to:

• Intelligent Octopus Go - EV saver - An Octopus Energy tariff exclusively for Octopus EV drivers, which lets you charge your EV at home for only 6p/kWh. It saves you an extra 1p on off-peak rates, so you'll get six hours of guaranteed cheap energy for your home between 11:30pm and 5:30am. 
• Intelligent Octopus Go – The UK’s most popular EV tariff, which automatically charges your car when it's cheapest. Get super low smart charging rates plus 6h of cheap energy for your whole home every night.
• Octopus Go – If you don’t have an intelligent-compatible car or charger, our smart tariff still gives you super cheap electricity between 00:30 and 05:30 every night. Fill up for a tenth of the price of a traditional car, and keep your fuel costs around 3p per mile.

Octopus - Salary Sacrifice Charging - Octopus Electroverse are launching the ability to also add charging to their salary sacrifice scheme. Employees simply share with the Octopus EV team their monthly/annual mileage and charging habits, and we’ll provide a full cost and savings quote. Once agreed, discounted charging starts right away, with fixed monthly costs set up easily through your payroll team.

The government’s been busy introducing policies that are making EVs even more affordable. Here’s what’s on offer today:

• Low Benefit-in-Kind (BIK) rates – At just 3%, EVs have the lowest company car tax rates available, keeping your monthly payments down. When compared to a hybrid of 13% and petrol or diesel of 37% - these offer significant savings.
• The new Electric Car Grant – Drivers now save up to £3,750 on EVs priced under £37,000. The discount applies to both leases and salary sacrifice, and is automatically applied when you order.
• Workplace Charging Scheme - Businesses, charities, public sector organisations, and small accommodation providers can save on installing EV chargepoints, covering up to 75% of costs (including VAT) for up to 40 sockets per applicant. 
• Charging grants for homes and workplaces – Renters, flat owners, and landlords can claim up to 75% off the cost of a home charger (worth up to £350), if they have access to a private parking space.
• Scotland-specific support – In addition to UK-wide grants, Scottish drivers can look into interest-free EV loans, charger funding, and rural support via the Energy Saving Trust.
• ULEZ savings – EV drivers don’t have to pay London’s Ultra Low Emission Zone (ULEZ) charge, saving up to £12.50 per day compared to petrol and diesel drivers. For commuters, that’s over £3,000 a year in avoided fees.

Not every driver needs a brand-new vehicle. Our approved used EVs, available through salary sacrifice, give you the same benefits at lower monthly costs. They’ve had a previous life as demo cars, company cars, or leases, and we’ve spruced them up to high standards so you can get a top notch EV at a great price.

Unlike a traditional used car, Octopus EV still provides them as an all-inclusive cost covering all servicing, breakdown, insurance and tyres. For those on a lower budget, knowing that the cost won’t exceed to monthly amount can be really important.

And the savings don’t stop with tariffs. If you invest in smart and sustainable home energy solutions, you’ll save even more. These include:

• Solar panels, which cut your energy bills by around 90%.
• Heat pumps, which use electricity and air to keep your home cosy for less. Right now, homeowners can claim a £7,500 government grant to upgrade to a heat pump.
• Battery storage, which unlocks even more savings by storing power and selling any extra back to the grid.

Octopus Energy is right at the cutting edge of these innovations. We’re even working on Zero Bills homes. Yep, that’s right: homes you can actually buy that are so sustainable, you don’t have to pay a penny to run them (at least for five years). 

We’ve also teamed up with BYD to launch Power Pack, the UK’s first vehicle-to-grid (V2G) bundle. V2G turns your EV into a “battery on wheels” – so it charges when electricity is cheap and sends power back to the grid when it’s in demand. For less than £300 a month, drivers get a V2G-ready BYD Dolphin, a smart charger, and free home charging.

Sounds good, right? But don’t just take it from us. Our salary sacrifice customers are the best proof that the EV savings really do add up. 

Paul Connor, Head of Financial Accounts at Sirona Care & Health, loves how easy the scheme makes it to save. “It puts everything together in one payment,” he says. “Tax, insurance, servicing, everything’s in one place. From a financial point of view, it’s extremely beneficial for staff."

For Seb Clark, the company’s Head of Creative, the savings he could make on his commute made it a no-brainer. “It was cheaper to get a car through the scheme than it was to get a monthly train ticket,” he laughs.

And for Russel at Vegner Group, the numbers spoke volumes. “I looked at the costs in more detail the other day, and the savings compared to my previous diesel Audi Q5 are phenomenal,” he explains. “I'm spending about £70 a month on charging versus £300 a month on diesel.”

We know everyone’s finances look a little different, so we also offer employees 10% off one-to-one coaching through Octopus Money. These sessions will help them see exactly how an EV fits into their world – whether they’re weighing it up against train tickets, balancing family budgets, or planning ahead. Best of all, the first call is completely free!

Signing up to our EV salary sacrifice scheme is a great way to show you care about your team’s finances. Along with cheaper charging and government grants, it’s making EVs a lot cheaper than petrol and diesel cars for the vast majority of drivers. Ready to get the wheels in motion?