Octopus EV partners with Mastercard to expand access to salary sacrifice scheme

In a major push to accelerate the UK’s transition to cleaner transport, Octopus Electric Vehicles has partnered with Mastercard to offer small business cardholders access to affordable electric cars through a salary sacrifice scheme with added incentives to sweeten the deal.

Through the Mastercard Business Bonus programme, small business cardholders can now sign up to Octopus EV’s innovative leasing scheme, enabling employees to drive new or nearly-new electric vehicles (EVs) while saving up to 40% on monthly costs. As part of the partnership, employees will also receive an additional £100 EV charging credit when they order an EV via Octopus.

“The benefits are not just for drivers, but for their employers too. Companies can cut emissions, retain staff, and save money. By partnering with Mastercard, more businesses of all sizes can discover one of the most attractive employee benefits around right now.”

Salary sacrifice allows employees to lease EVs by giving up a portion of their gross salary, unlocking significant tax savings for both employees and employers. The initiative offers an eco-friendly benefit that also helps businesses boost employee recruitment and retention.

Darren Deal, Senior Vice President of Fintech, Government and Digital Partnerships at Mastercard, said: “It’s great to team up with Octopus EV to help our small business cardholders access more sustainable travel alternatives. Through our Business Bonus programme, we collaborate with trusted partners to deliver innovative, tailored solutions that help businesses grow, and this is a prime example.”

The collaboration aligns with Mastercard’s broader commitment to sustainability and supporting SMEs, while building on Octopus EV’s mission to make electric driving accessible to more UK drivers.

In just four years, Octopus EV has already helped more than 6,000 companies, including PepsiCo, Jacobs Douwe Egberts, and TPX Impact, launch their own EV salary sacrifice schemes.

Beyond the savings on car leasing, employees using Octopus Energy’s smart EV tariff, Intelligent Octopus Go, can save up to £700 annually on charging costs compared to petrol or diesel, further lowering the barrier to clean transport.

The partnership comes at a time of rapid EV adoption in the UK, now the largest EV market in Europe, bolstered by government incentives such as low Benefit in Kind (BiK) rates and the Zero Emissions Vehicle (ZEV) Mandate.

According to research commissioned by Octopus Electric Vehicles, 96% of EV drivers are satisfied with their switch and say they’re likely to choose electric again.