Nottingham City Council has introduced a new car salary sacrifice scheme in partnership with Tusker, offering employees a cost-effective way to drive electric and ultra-low emission vehicles (ULEVs) while supporting the authority’s wider sustainability goals.
Launched on 10 March, the scheme is available to around 7,000 eligible employees and forms part of the Council’s wider “Works Perks” benefits programme.
Driving affordability and sustainability for employees
The scheme allows staff to lease a brand-new electric or hybrid vehicle directly through their salary, bundling insurance, servicing, maintenance and breakdown cover into a single monthly cost.
According to HR Reward Consultant Lynn Griffin-Pearce, the initiative provides “a cost-efficient and environmentally responsible alternative to traditional vehicle ownership,” while also benefiting from competitive Benefit in Kind rates and optional access to a nationwide charging network.
Employees can choose lease terms ranging from 24 to 60 months, offering flexibility to manage monthly costs. The Council also plans to introduce a “pre-loved” vehicle option, aimed at widening access and improving affordability across its workforce.
Financial and organisational benefits for the Council
Beyond employee savings, the scheme is designed to generate National Insurance savings for the Council itself—making it a financially strategic addition to its benefits offering.
The initiative also marks a return to Tusker for Nottingham City Council, which previously ran a similar scheme a decade ago.
To ensure a smooth rollout, multiple internal teams—including payroll, finance and legal—were involved in establishing safeguards and compliance measures. Managers are also required to approve vehicle requests, helping mitigate risks associated with employees leaving or retiring during the lease period.
Tusker’s Lifestyle Protection programme adds a further layer of security, covering early termination costs in situations such as long-term illness, maternity leave or death in service.
Strong early uptake following launch
The scheme has already seen significant engagement among staff. Supported by internal communications and Tusker’s ready-made launch materials, the initiative generated 216 sign-ups on its first day and 21 vehicle orders within the first week—around one third of its annual target.
Kara Harrison, HR Reward Advisor at the Council, emphasised the importance of preparation: setting “clear guardrails” and ensuring the scheme was fully robust prior to launch helped minimise queries and build confidence among employees.
Part of a wider employee benefits and wellbeing strategy
The new car scheme builds on an extensive benefits package offered by Nottingham City Council, designed to support work-life balance, financial wellbeing and career development – ultimately enabling colleagues to deliver excellent services to Nottingham’s citizens.
Employees already have access to generous annual leave, flexible working arrangements, family-friendly policies and salary sacrifice options such as cycle-to-work schemes. Health and wellbeing support includes occupational health services, an Employee Assistance Programme, gym and leisure discounts, and access to wellbeing initiatives such as mindfulness sessions and specialist health checks.
In addition, staff benefit from structured learning and development opportunities, including an annual individual performance review to discuss behavioural expectations, career aspirations and the support colleagues need to help them progress.
Supporting a greener, more inclusive city
Cheryl Clements, Head of Business Development at Tusker, highlighted the broader impact of the initiative, noting that government-backed frameworks and protections have strengthened the long-term viability of salary sacrifice schemes.
She added that the partnership aligns with Nottingham’s ambition to create a more sustainable and inclusive city, with greener transport options playing a key role in reducing emissions and supporting environmental targets.
With strong early adoption and plans to expand access through pre-loved vehicles, the scheme represents a significant step in aligning employee benefits with both financial and environmental priorities.
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