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Octopus Teams Up with Lloyds Bank for £550 Million Boost to EV Salary Sacrifice Scheme

Image Credit: Octopus Energy

Octopus Electric Vehicles has entered into a debt securitisation arrangement with Lloyds Bank, securing an additional £550 million in funding. This strategic move pushes the total financing for their corporate salary sacrifice scheme beyond the £1 billion milestone. Since its launch in April 2021, this scheme has garnered the interest of more than 4,000 enterprises, all eager to embrace the advantages of electric vehicle (EV) leasing cost savings.

The brainchild of Octopus Electric Vehicles, a subsidiary of the Octopus Energy Group, this innovative initiative is transforming the landscape of corporate mobility. It promises substantial monthly savings for corporate drivers opting for EVs, ranging between 30-40%. The package includes:

  • A brand-new electric vehicle.

  • A charging station.

  • An exclusive energy tariff courtesy of Octopus Energy.

One of the scheme's remarkable features is its extensive selection of over 85 EV models sourced from 28 distinguished automotive brands. Among the 4,000 companies that have already hopped on board are notable names like Dyson, McLaren, and Innocent Drinks. Octopus Electric Vehicles has expanded its footprint across the Atlantic, launching its scheme in the United States.

Fiona Howarth, CEO of Octopus Electric Vehicles, said the additional financing would help more drivers to switch from "old school gas guzzlers" to zero-emission EVs.

"Electric cars are revolutionising our roads," she said. "With battery prices down 90 per cent since 2010, electric cars are more affordable and can travel further than ever on a single charge. Drivers can fill up at home, work or on public networks, saving over £1,000 yearly on fuel. The tech in our pocket transformed when Apple led the smartphone revolution. Now our roads are catching up, and with Tesla leading the way, there are now almost 30 brands with great EVs on sale in the UK."

The electric vehicle market in the United Kingdom has witnessed remarkable growth in recent years, with nearly 900,000 EVs now gracing the country's roads. Projections indicate that the annual influx of new electric cars onto British roads could surpass 500,000 by 2028. A considerable part of this surge can be attributed to incentives provided by the UK government, including salary sacrifice programs and favourable Benefit in Kind rates, as highlighted by Octopus.

Furthermore, the corporate sector's embrace of EVs is evident in the significant 50.6% increase in corporate fleet purchases recorded in September, offsetting a 14.3% decline in private EV registrations. Mark Harper, the Transport Secretary, acknowledged the pivotal role of private sector innovation in advancing the cause of zero-emission vehicles as an increasing array of electric cars becomes accessible to consumers.

"That's why it's fantastic to see Octopus EV expand their flagship salary sacrifice scheme to help drivers with the upfront costs and easily make the change - with the government already committing to £2bn to support the transition to zero-emission vehicles, today's announcement shows the UK continues to make good progress on enabling people to buy the zero-emission vehicles they want," he said.


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